Cosmo Films Q3FY22 net profit up 65% year on year

Revenue was at INR 771 crore

50
Pankaj Poddar, chief executive officer at Cosmo Films Photo: Cosmo Films
Pankaj Poddar, chief executive officer at Cosmo Films Photo: Cosmo Films

Cosmo Films, a leading manufacturer of packaging films, on 25 January reported a 65% year-on-year increase in consolidated profit after tax in Q3 of FY 2021-2022.

The company’s profit after tax in Q3FY22 was INR 104 crore compared to INR 63 crore in the same period of last year. The revenue during the quarter was INR 771 crore, up from INR 572 crore. 

During the quarter, the company received sanctions under a production linked incentive (PLI) scheme to produce specialty films for use in electronic products. The incentive under the scheme will be for five years on 100% production of the new plant.

Commenting on the company’s performance, Pankaj Poddar, group chief executive officer, Cosmo Films, said, “In coming years, the company’s growth will be driven by specialized polyester line (commissioning in FY 23) and new BOPP line (commissioning in FY25), continuing focus on specialty sales and diversification into specialty chemicals and pet care business (under Zigly brand).”

Cosmo Films’ first report on sustainability and ESG initiatives

Zigly’s pilot launch has delivered better than the forecast, and the company looks forward to rolling out its digital-first omnichannel business model, Poddar said.

He added that the textile chemicals business that started commercial production in Q2 FY22 has taken off well. The company has commercialized more than four products within the first three months and has started supplying more than 40 customers. Poddar said that the company continues to conduct extensive trials with the customers and expects to add newer products and customers in the coming months.

“The company has also published its first report on sustainability and ESG initiatives on its website. It continues to work on several sustainability projects which shall further create a favorable environment impact besides cost optimization,” he said. 

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.

It is the right time to support our high-impact reporting and authoritative and technical information with some of the best correspondents in the industry. Readers can power Packaging South Asia’s balanced industry journalism and help sustain us by subscribing.

– Naresh Khanna

Subscribe Now

LEAVE A REPLY

Please enter your comment!
Please enter your name here