A record performance by Cosmo Films in the pandemic year

Consolidated results show EBITDA increase of 53% and PAT of 109%

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Shendra Cosmo films new Brucker line
The Shendra plant of Cosmo Films

On 20 May 2021, Cosmo Films, a public limited company listed on the Indian stock exchanges, declared its results for the financial year ending March 2021. The company is a long-standing manufacturer of films for packaging, labeling, and lamination and the Indian pioneer in plastic-based synthetic paper and an emerging player in specialty chemicals, polymers, and pet care.

Cosmo Films financial results

Cosmo results FY21
Cosmo Film results announced on 20 May 2021. Table Cosmo

In FY21, Cosmo Films PAT has more than doubled from FY20 (up 110%) in what the company says is because of higher specialty sales, better operating margins, and an uptick in performance by its subsidiaries. The FY21 ROCE and ROE stand at 22% and 30%, respectively, while earnings per share (EPS) rose by 115% to Rs 127 a share compared to the previous financial year. The company’s net debt at Rs 438 crore is close to one times its EBITDA.

The results for Q4 are more robust than the first three quarters of the financial year 2020-21, driven by the continued high demand and growth in specialty films in India and the company’s overseas operations.

Commenting on the company’s performance, Pankaj Poddar, CEO, Cosmo Films, said, “Cosmo Films is a name to reckon with globally for newer, innovative solutions. The specialty film sales have grown YoY in the last three years, and the growth rate in FY21 surpassed 20% despite the base growing larger each passing year. This reaffirms our growth strategy through continuous investment in R&D, sales and marketing, and employee practices. The significant share of specialty films in the overall sales will help the company do well even in the tougher times.”

The construction of a specialized BOPET line has started and is moving as per plan even with significant Covid related challenges on the expansion front. The internal consumption for masterbatch is growing continuously, and the external sales will start soon. According to its press release, Cosmo has completed the development of several textile chemical products with specific USPs. Currently, under trial with textile manufacturers and processors, the commercial launch is expected in the first of this financial year. The pilot launch of pet care products under the Zigly brand name will be in Q2 of the current financial year. 

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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– Naresh Khanna

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