Cosmo Films Ltd, a
global leader in films for packaging, labeling & lamination applications
and synthetic paper declared that the company’s consolidated profit after tax
increased by 85% from Rs 61 crores to Rs 113 crores for FY20. Net revenue has
also increased from Rs 2,156 crores to Rs 2,203 crores for FY20. During the
period EBITDA has increased by 55% to Rs 280 crores. For Q4FY20 company has
reported standalone profit after tax of Rs 29 crore, PAT was Rs 28.63 crore
during the same quarter in FY19.
The company has
posted Rs.78 crores EBITDA during Q4 FY20 (34% higher on YOY). Better
operational margins, better operational efficiencies and improved performance
by subsidiaries contributed to higher EBIDTA. Provisioning towards one-time
impairment in market value of assets in overseas subsidiaries impacted the PBT
and PAT. PAT was further impacted due to higher deferred tax provisioning on
temporary timing differences relating to the SEZ unit.
For the full year
FY19-20, EBITDA increased by 55% primarily due to higher specialty sales
(growth of 11%), balanced demand and supply scenario, operational efficiencies
and an improved performance by subsidiaries. During the year, the company paid
an interim dividend of Rs. 15/- per equity share (150%) as per the board
meeting dated 13th February 2020 for the financial year 2019-20. The company’s
subsidiary project for masterbatches (an essential ingredient of flexibly
packaging film) is progressing as scheduled and is expected to commence
operations from Q2, FY21.
Due to the lockdown
announced by the government of India in wake of COVID-19 pandemic, the
operations of the company were suspended at its Gujarat and Maharashtra plants
for a couple of days in March but resumed back in first half of April itself.
Commenting on the
financial performance of the company Mr. Pankaj Poddar, CEO, Cosmo Films Ltd.
said, “Flexible Packaging demand should increase in India and the world post
Covid-19 with increasing shift in consumer preference towards packaged products
particularly in food and increased concern for cleanliness and hygiene. This
should augur well for the company. The company shall continue its focus on
speciality films, supporting brands on building recyclable packaging
structures, R&D and new product development.
The management has
evaluated the possible impact of Covid-19 pandemic on the business operations
and believes that impact so far has been minimal. The management will continue
to monitor the impact of the future economic conditions and an uncertain environment
on the company’s operations.”
