Commissioning of several new production lines in India within a short span coupled with subdued order flow from overseas customers (geo-political crisis, supply chain corrections, and currency fluctuations) led to disruption of overall demand supply scenario as well as the margins. Impact on Cosmo was minimal as our strong and growing portfolio of speciality films is least prone to competitive pressures.
Margins were also under pressure in the overseas subsidiaries due to increase in raw material costs, weakening of foreign currencies against US dollar particularly in Japan and Korea.
The near-term outlook for non-specialty films could be challenging, and the Company will continue to expand on specialty films growth.
BOPET line was commissioned two days before the end of Q2. Like BOPP, our focus here too would be to rapidly develop value add and speciality products.
Despite drop in this quarter earnings, our financials remain strong with annualized ROCE and ROE at 25% and 32% respectively.
Commenting on Company’s performance Mr. Pankaj Poddar, Group CEO, Cosmo First Ltd. said “In films business, we have recently developed some unique products which will support specialty sales growth. Our Specialty Chemicals business doubled its revenue YOY. Our Petcare vertical has grown into 6 experience centres at Q2 end and supported by online portal and online app is gaining rapid recognition.”
About Cosmo First Limited
Founded by Mr. Ashok Jaipuria in 1981, Cosmo First today has a presence across 100+ countries around the globe. Cosmo First is a global leader in specialty films and an emerging player in specialty chemicals (Masterbatches, Adhesive, Coating & Textile chemicals) along with digital first Omni channel Pet care business under the brand name ‘Zigly’.