Cosmo Films Limited Q2FY17 PAT at Rs. 21 Crore; up by 12% Over Last Quarter

NEW DELHI, November 3, 2016 /PRNewswire/ --

Cosmo Films Limited, a leading global player in speciality BOPP films, today declared its financial results for the second quarter ended Sep 30, 2016.

During the quarter, gross margins have declined by 250 basis points due to subdued demand in overseas markets and commissioning of new capacities. Despite the decline in margins, both EBITDA and EPS have grown vs. previous quarter on the back of growth in sale of specialty films and improved operational efficiencies.

On YOY basis, revenue has dropped due to falls in raw material prices which were passed on to the customers. EBIDTA gap is due to non-operative and non-repetitive items of Rs. 3.5 crores (mainly foreign currency fluctuations in subsidiaries). PAT was however, positively impacted due to lower tax in India from SEZ tax exemption which was not there in corresponding period of last year.

As previously informed, the company has entered into a definitive MOU for purchase of adjoining industrial land at Waluj (Aurangabad, Maharashtra) for upcoming expansions.

Commenting on the financial performance of the company Mr. Pankaj Poddar, CEO, Cosmo Films Ltd. said, "We continue to grow our specialty film business and therefore, minimizing the cyclical impacts of demand supply mismatches. The efforts made towards growth of specialty films will reap rich benefits to the company in the near term. I believe that margins have almost bottomed out and can only improve from here. Our new capacity expansion in India is also progressing as per schedule and commercial production is expected to commence in Q4, FY17."

Consolidated Results 

   
    In Rs. crore  Q2 FY17 Q1 FY17 %QoQ Q2FY16 %YoY
    Total Revenue  403.6   381.4   6%  435.0  -7%
    EBITDA         46.4    44.7    4%   50.2  -8%
    PAT            21.1    18.9   12%   20.8   2%
    EPS (in Rs.)   10.9     9.7   12%   10.7   2%

About Cosmo Films Limited 

Established in 1981, Cosmo Films Limited today is one of the global leaders and manufacturers of Biaxially Oriented Polypropylene (BOPP) films used for packaging, labels and lamination applications. The company is the largest exporter of BOPP films from India and is also the largest producer of thermal laminating films in the world with plant cum distribution centres in the U.S, Korea & Japan and global channel partners in more than fifty countries. For more information, visit http://www.cosmofilms.com.

Media contact:
Anand Lalla
[email protected]
+91-7506051178
Concept Public Relations India Limited