New Delhi: Cosmo First Limited today declared its financial results for the quarter ended June 2022.

During the quarter, the flexible packaging industry experienced pressure on margins due to commissioning of several new production lines within a short span of 4-5 months. The bunching of capacity expansions caused temporary imbalance in the demand supply scenario. Margins were also under pressure in the overseas subsidiaries due to increased raw material costs and weakening of foreign currencies against US dollar. Our sustained focus on speciality films in the last 2-3 years and ongoing improvement of internal efficiencies helped achieving higher EBITDA despite the margin pressure.

Our annualized ROCE and ROE stands at 27% and 36% respectively with TTM EPS increasing to Rs. 150.

The demand supply balance should get restored over the next few quarters with strong organic growth in domestic demand and geo-political normalcy returning in Europe. In the meantime, our speciality films portfolio which accounts for more than 65% of our sales and is growing quarter on quarter would enable us to hold strong.

Bonus shares issue announced in May 2022 was completed ahead of time and the trading in bonus shares commenced on June 29, 2022. The bonus issue reflects management’s continued commitment to share the prosperity with the shareholders.

Commenting on Company’s performance Mr. Pankaj Poddar, Group CEO, Cosmo First Ltd. said “In packaging business, we expect growth journey to continue with speciality films. Our continued thrust on innovating films with lower carbon footprints would further strengthen our leadership position in specialty films. During the quarter, our Specialty Chemicals business has posted threefold increase in revenue over last year. Our Petcare vertical, Zigly has now four experience centres. We target to have 15 experience centres by FY23.

In coming years, the Company’s growth will be driven by expanded portfolio of speciality films, commissioning of Specialized Polyester line and capacity expansion of CPP and BOPP films as well as innovative multi products offering in specialty chemicals and growth in omni channel ecosystem for Pets Care.”