New Delhi, Aug 9, 2017: Cosmo Films Limited, a global leader in films for packaging, labeling & lamination applications and synthetic paper today declared its financial results for the first quarter ended June 30, 2017.
Total Revenue for the quarter ended June 30, 2017 increased to Rs.471 crores, from Rs.409 crores in Q1FY17. The increase in revenue could have been higher but for the de-stocking and deferment of purchases by customers in June in preparation for GST. The GST transition also affected the margins. The declining raw material prices led to one time stock loss of Rs.5.3 crores in the quarter.
The company could partly compensate the above adverse impacts by more than 25% increase in speciality films and additional volume from the new line commissioned in Feb 2017.
Commenting on the financial performance of the company Mr. Pankaj Poddar, CEO, Cosmo Films Ltd. said, “The company continues on path of enhanced focus on speciality films. GST implementation, being second significant event after demonetization within short time span, impacted volume and margins temporarily and is expected to get stabilized within Q2FY18. Further, the new line is expected to operate at full capacity from mid of Q2FY18 and should help improve the profitability.”