New Delhi [India], Nov 13 (ANI): Cosmo Films Ltd, a global leader in films for packaging, labelling and lamination applications besides synthetic paper, on Wednesday reported a profit after tax of Rs 28.7 crore in the July to September quarter of current fiscal.
It had clocked a profit of Rs 10.1 crore in Q2 of FY19. The Q2 FY20 net revenue increased by 5 per cent year-on-year mainly on the account of growth in sales volumes.
The company achieved earnings before interest, tax, depreciation and amortisation (EBITDA) of Rs 64.5 crore during the quarter. Higher speciality sales (up 14 per cent), increased sales volumes, improvement in US operations and better bi-axially oriented polypropylene (BOPP) film margins contributed to an improved EBITDA.
"The company has started to upgrade one of its largest BOPP film lines into a speciality film line, which is expected to be completed by H1, FY21. This will facilitate further growth of speciality films," Cosmo Films said in a statement.
During the period, the company received the CII National Excellence Award 2019 for 5S implementation at its Waluj plant (the oldest plant in Aurangabad). Building on the strong RD focus, the company said it has applied for multiple patents in the current year, adding to the already strong pipeline of specialty films.
These high value-add speciality films will be commercially launched in the coming months and will generate incremental profits with minimal capital expenditure.
"We continue with our strategy to focus on high-end speciality films sale and recyclable structures," said Chief Executive Officer Pankaj Poddar. "BOPP films margins looks stable at the current level. Better utilisation of assets and improvement in US subsidiary further contributed towards improved results."With the engineering of innovative products and sustainability solutions, Cosmo Films over the years has been partnering with worlds' leading FB brands, packaging and printing converters to enhance their consumer experience.
The company is the largest exporter of BOPP films from India and also the largest producer of thermal lamination films in the world. Its customer base is spread in more than 100 countries with manufacturing units in India, South Korea and Japan.