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Cosmo First Limited Announces Strong Performance in Q4 2023 Amidst Industry Challenges

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Cosmo First Limited Announces Strong Performance in Q4 2023 Amidst Industry Challenges

Cosmo First Limited, a leading player in the packaging and specialty films industry, has reported its financial results for the quarter ending December 2023. Despite facing challenges such as shrinking margins in BOPP (Biaxially Oriented Polypropylene) and BOPET (Biaxially Oriented Polyethylene Terephthalate), the company has managed to outperform the industry, thanks to its focus on specialty films.

The domestic market for BOPP and BOPET witnessed intense competition with many players resorting to desperate, below-cost selling strategies. However, Cosmo First Limited navigated through these turbulent market conditions and maintained its strong performance, largely driven by the growth of its specialty film business.

One of the key highlights of the quarter was the successful launch of metallized capacitor film for the electronic industry and Rigid Packaging for the FMCG (Fast Moving Consumer Goods) industry. The market response to these new products has been exceptionally positive, with the company expecting to achieve full capacity utilization within the next 2-3 quarters, thereby boosting its EBITDA earnings.

Moreover, the company’s subsidiary, Zigly, has revamped its IT infrastructure to capitalize on the exponential growth of the pet care industry in India. This strategic move has not only enhanced Zigly’s marketing attribution but also improved its Return on Advertising Spends (RoAS) and other key performance metrics.

The Speciality Chemical subsidiary of Cosmo First Limited is also progressing well and is on track to deliver double-digit EBITDA and high teens Return on Capital Employed (ROCE) from the financial year 2025 onwards.

In January 2024, CRISIL re-affirmed the company’s credit rating as AA- with a stable outlook, reflecting its strong financial position and sound business strategy.

Commenting on the company’s performance, Mr. Pankaj Poddar, Group CEO of Cosmo First Ltd, said, “Despite short-term challenges in the packaging film segment, we remain focused on building our specialty films vertical. We are excited about the launch of our high-value-added sun control film, Cosmo Sunshield, in FY25. Over the next 12-18 months, our specialty BOPET films, Sunshield films, Rigid Packaging, and Specialty Chemicals are expected to significantly enhance our overall profitability. With the booming pet care industry in India, Zigly is poised to be a significant wealth creator for our shareholders.”

Looking ahead, Cosmo First Limited is well-positioned to capitalize on the growing demand for specialty films and other innovative products, ensuring sustainable growth and value creation for its stakeholders.

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