Cosmo Films 2019-2020 profit rises 85%

Revenue was also up

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Cosmo Films
Pankaj Poddar, CEO, Cosmo Films

Cosmo Films Limited, a manufacturer of films for packaging, labeling, and lamination applications and synthetic paper, on 4 June reported an 85.63% increase in net profit for the financial year 2019-2020 to INR 113.44 crore. It stood at INR 61.11 crore in 2018-19.

Its revenue from operations in the financial year 2019-2020 increased by 2.17% to INR 2,203.53 crore as against INR 2,156.52 crore in 2018-19. The EBITDA during 2019-2020 increased by 55% primarily due to higher specialty sales, balanced demand and supply scenario, operational efficiencies, and improved performance by subsidiaries.

The net profit during the fourth quarter, however, was down 24.37% at Rs 20.85 crore. The company said that operations were affected in March due to the announcement of the national wide lockdown. The operations of the company were suspended at its Gujarat and Maharashtra plants for a couple of days in March but resumed in the first half of April.

The company said it subsidiary project for masterbatches is progressing as scheduled and will commence operations from the second quarter of the financial year 2020-2021.

Commenting on the financial performance of the company Pankaj Poddar, CEO, Cosmo Films Ltd said, “Flexible packaging demand should increase post-COVID-19 with increasing shift in consumer preference towards packaged products, particularly in food, and increased concerns of cleanliness and hygiene. This should augur well for the company.”

The Covid-19 pandemic led to the country-wide lockdown on 25 March 2020. It will be two years tomorrow as I write this. What have we learned in this time? Maybe the meaning of resilience since small companies like us have had to rely on our resources and the forbearance of our employees as we have struggled to produce our trade platforms.

The print and packaging industries have been fortunate, although the commercial printing industry is still to recover. We have learned more about the digital transformation that affects commercial printing and packaging. Ultimately digital will help print grow in a country where we are still far behind in our paper and print consumption and where digital is a leapfrog technology that will only increase the demand for print in the foreseeable future.

Web analytics show that we now have readership in North America and Europe amongst the 90 countries where our five platforms reach. Our traffic which more than doubled in 2020, has at times gone up by another 50% in 2021. And advertising which had fallen to pieces in 2020 and 2021, has started its return since January 2022.

As the economy approaches real growth with unevenness and shortages a given, we are looking forward to the PrintPack India exhibition in Greater Noida. We are again appointed to produce the Show Daily on all five days of the show from 26 to 30 May 2022.

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