Cosmo First Limited has announced its financial results for the quarter ended March 2023. During the quarter, the commodity films margins in both BOPP and BOPET experienced a significant decline, impacting the profitability of the industry. However, Cosmo, with over two-thirds of its revenue derived from specialty films, demonstrated its ability to withstand margin pressures and once again outperformed the industry.
Looking ahead, Cosmo anticipates an improvement in its position in the coming months, signaling an end to the quarter-over-quarter declining phase that has persisted over the past three quarters. The company remains committed to expanding its portfolio of specialty products, further solidifying its leading position in the industry.
Cosmo's pet care vertical continues to experience rapid growth, as evidenced by its monthly run rate revenue (GMV) of Rs 2 crores from its 15 experience centers. Furthermore, the company has been enhancing its online presence through its website and mobile app. Further, Cosmo is currently in the final stages of an acquisition opportunity in the online pet care space, which is expected to be concluded shortly. This development is projected to accelerate the growth trajectory of the pet care vertical.
The speciality chemical subsidiary is set to launch newer adhesives which together with healthy growth in the masterbatch vertical would enable the subsidiary to have further growth in FY 23-24.
Cosmo First Limited maintains a strong balance sheet, boasting substantial cash reserves and a net debt to EBITDA ratio of approximately one time.
The Board of Directors has recommended a dividend of Rs 5 per equity share for the financial year FY 22-23, pending approval from the shareholders during the annual general meeting. This dividend distribution, combined with the 1:2 bonus in June 2022 and the successful share buyback in February 2023, reaffirms the company's commitment to providing regular returns and sharing prosperity with its shareholders.
Pankaj Poddar, Group CEO, Cosmo First Ltd. said, "The company has launched many new specialty films including shrink for packaging and non- packaging applications. Several other speciality films for non-packaging applications are in the pipeline and should hit the market in coming quarters. All these would further strengthen the company's position in speciality films business."