Latest news with #CosmoFirstLtd
Business Upturn
4 days ago
- Business
- Business Upturn
Cosmo First commissions new BOPP Film Line at Aurangabad plant
By Aman Shukla Published on June 2, 2025, 10:12 IST Cosmo First Ltd, a global supplier of films for packaging, lamination, labelling, and synthetic paper, has successfully commissioned a new BOPP (Biaxially Oriented Polypropylene) film line at its manufacturing facility in Aurangabad, Maharashtra. The new BOPP line involves a capital expenditure of over ₹400 crore and adds an annual production capacity of 81,200 metric tonnes (MT). With this addition, Cosmo First's total annual BOPP capacity rises by approximately 40%, reaching 2,77,000 MT. This development is part of the company's strategic initiative to scale up production and meet the growing demand for speciality packaging films. Cosmo First has recorded a 10% CAGR in speciality film sales over the past six years. The expanded capacity is expected to support the launch of several new speciality products in the coming quarters. The company stated that the new line features advanced manufacturing technology, aimed at enhancing efficiency and broadening its product offerings in the speciality films and packaging segments. Pankaj Poddar, Group CEO, Cosmo First, stated, 'We expect the line to get filled fast due to current favourable gap in demand and supply in the domestic industry. Further, the new BOPP film line shall be eligible for state govt incentives beside being the most cost-efficient line in India. The Company's focus will be on taking full leverage of the new investments including BOPP line and grow specialty film sales.' Aman Shukla is a post-graduate in mass communication . A media enthusiast who has a strong hold on communication ,content writing and copy writing. Aman is currently working as journalist at
Yahoo
22-05-2025
- Business
- Yahoo
Cosmo First Ltd (BOM:508814) Q4 2025 Earnings Call Highlights: Strong Sales Growth and ...
Release Date: May 21, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Cosmo First Ltd (BOM:508814) reported a 16% increase in consolidated sales for the March 2025 quarter compared to the same period last year, driven by higher specialty sales and improved BOPP margins. The company's full-year profit after tax (PAT) increased by 115% compared to the previous year, indicating strong financial performance. Cosmo First Ltd has successfully started operations of its new CPP line and Sunshield Film, which are expected to contribute significantly to revenue growth. The company is focusing on expanding its specialty film sales, which have been growing at a 10% CAGR over the last six years. Cosmo First Ltd has invested significantly in CapEx over the past three years, which is expected to yield substantial revenue and profitability growth in the next 2-3 years. The company incurred a one-time cost of 4.3 crore INR for shifting a thermal line from Korea to India, impacting quarterly results. There was a planned maintenance shutdown that resulted in a 10% lower volume on one of the production lines. The company's net debt stands at 967 crore INR, which is 2.7 times EBITDA, indicating a significant debt burden. The promoters sold a 4% stake in the company, which has negatively impacted market sentiment. The pet care vertical, Zigly, is not yet profitable, and the company faces challenges with low product margins due to supplier pricing. Warning! GuruFocus has detected 4 Warning Signs with BOM:508814. Q: How do you see FY26 panning out for specialty BOPP volumes? A: We are optimistic about better growth rates in FY26 for specialty sales, with several products in the pipeline. (Group CFO) Q: Will there be a need for further investment in specialty BOPP given the new commodity line coming online? A: Yes, initially the new capacity may skew towards commodity, but it will gradually shift to specialty, aligning with our strategy to grow specialty film capacity. (Group CFO) Q: How do commodity BOPP margins affect specialty and semi-specialty margins? A: Specialty margins remain stable, while semi-specialty margins change with commodity margins but not linearly. A change in commodity margins doesn't directly translate to the same change in semi-specialty margins. (Group CFO) Q: What is the expected revenue ramp-up for sun control films in FY26 and FY27? A: We expect domestic sales to reach 15-20 crore next year, with exports contributing more significantly in FY27. Overall, we anticipate closing between 25-30 crore next year and exceeding 50 crore the year after. (Group CEO) Q: What is the outlook for BOPP and BOPT margins and supply side scenarios? A: Polyester margins could improve due to limited capacity additions globally. However, BOPP may face temporary pressure due to new lines in India, but our focus on specialty sales should mitigate this impact. (Group CEO) Q: How does the management view the current capital allocation and future CapEx plans? A: Recent CapEx is yet to fully mature, but we expect significant growth in revenue and profitability as new capacities come online. We plan to add specialty capacity this year with a CapEx of around 200 crore, primarily funded through internal accruals. (Group CFO) Q: What is the expected break-even point for the new BOPP line? A: At 90% utilization, the new BOPP line should generate significant gross margins, with fixed costs expected to be manageable, contributing positively to the bottom line once fully operational. (Group CFO) Q: Can you provide more details on the Cosmo Consumer vertical? A: Cosmo Consumer will focus on products like window films and paint protection films. The investment is largely complete, with future focus on brand building and marketing. (Group CEO) For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
