Cosmo Films, a leading global player in speciality BOPP films, has declared its financial results for the first quarter ended 30 June 2016. The company reported an increase of 2.7% in its net profit to Rs.18.9 crore for Q1FY17, as compared to Rs. 18.4 crore in the corresponding quarter of last fiscal.
The total income for the quarter ended 30 June 2016 stood at Rs. 382.5 crore as compared to Rs. 408.9 crore in Q1FY16 on account of reduced raw material prices being passed on to
customers although there is volume growth of 6.3% on account of improvement in manufacturing lines efficiency.
Cosmo Films’ Earnings before Interest, Tax, Depreciation and Amortization (EBITDA) in Q1FY17 stood at Rs. 44.7 crore as compared to Rs. 48.5 crore in Q1FY16. India operations EBITDA has improved to Rs. 50.8 from Rs. 48.9 crore in Q1FY16. The impact from higher margins in Q1FY16 on account of temporary polypropylene shortage has been addressed on the back of volume growth of 6.3% and growth in speciality films sale in excess of 10%.
The subsidiaries continue to be in improvement trajectory though there is reduction in reported EBITDA due to non-recurring inventory reserve, hedging losses on Japanese Yen in Q1FY17 (versus hedging gains in Q1FY16) and one time gain in Q1FY16 from retrospective reversal of custom duty in USA.
Commenting on the financial performance of the company, Pankaj Poddar, CEO, Cosmo Films said, “India operations performance has improved on back of higher volumes and healthy increase in speciality sales. We continue to be on an improvement trend in subsidiaries also although there is reduction in reported EBITDA due to non-recurring items.”