Cosmo Films reports profit of Rs 113 crore for FY20; Annual EBITDA increases by 55 percent
Cosmo Films Limited, a global leader in films for packaging, labeling & lamination applications and synthetic paper today declared its financial results for the quarter ended March 2020.
Company’s consolidated profit after tax increased by 85 percent from Rs 61 crores to Rs 113 crores for FY20. Net revenue has also increased from Rs 2,156 crores to Rs 2,203 crores for FY20. During the period EBITDA has increased by 55 percent to Rs 280 crores. For Q4FY20 company has reported standalone profit after tax of Rs 29 crore, PAT was Rs 28.63 crore during the same quarter in FY19.
The company has posted Rs.78 crores EBITDA during Q4 FY20 (34% higher on YOY). Better operational margins, better operational efficiencies and improved performance by subsidiaries contributed to higher EBIDTA. Provisioning towards one-time impairment in market value of assets in overseas subsidiaries impacted the PBT and PAT. PAT was further impacted due to higher deferred tax provisioning on temporary timing differences relating to the SEZ unit.
For the full year FY19-20, EBITDA increased by 55% primarily due to higher specialty sales (growth of 11%), balanced demand and supply scenario, operational efficiencies and an improved performance by subsidiaries.
During the year, the company paid an interim dividend of Rs. 15/- per equity share (150%) as per the board meeting dated 13th February 2020 for the financial year 2019-20.
The company’s subsidiary project for masterbatches (an essential ingredient of flexibly packaging film) is progressing as scheduled and is expected to commence operations from Q2, FY21.
Due to the lockdown announced by the government of India in wake of COVID-19 pandemic, the operations of the company were suspended at its Gujarat and Maharashtra plants for a couple of days in March but resumed back in first half of April itself.
Commenting on the financial performance of the company Mr. Pankaj Poddar, CEO, Cosmo Films Ltd. said, “Flexible Packaging demand should increase in India and the world post Covid-19 with increasing shift in consumer preference towards packaged products particularly in food and increased concern for cleanliness and hygiene. This should augur well for the company. The company shall continue its focus on speciality films, supporting brands on building recyclable packaging structures, R&D and new product development.
The management has evaluated the possible impact of Covid-19 pandemic on the business operations and believes that impact so far has been minimal. The management will continue to monitor the impact of the future economic conditions and an uncertain environment on the company’s operations.”