Cosmo First Limited declared its financial results for the quarter ended June 2023. The company posted net revenue of Rs. 658 crore in Q1 FY24 compared to Rs. 715 crore in Q4 FY23. During the quarter, Cosmo First registered a PAT of Rs. 14 crore compared to Rs. 32 crore in Q4 FY23. EBITDA during Q1 FY24 stood at Rs. 55 crore comapred to Rs. 74 crore in Q4 FY23.

The results for the quarter would have been better by Rs. 20 crore but for the non-repetitive inventory loss arising from the sharp drop in prices of raw material towards the quarter end.

During the quarter, the BOPP demand has started picking up and demand-supply balance should get restored in the coming quarter(s). In case of BOPET where the supply is far in excess of demand, it will take many more quarters for supply-demand gap to bridge. Margins are therefore likely to remain under pressure with little downside risk.

The exports markets showed signs of improvement with better specialty sales. Cosmo with over two third of its revenue coming from BOPP speciality films could withstand the margin pressure better than the industry. We continue to build our specialty films portfolio by adding speciality polyester films including shrink label and sun shield films which would further strengthen our overall margins and also the ability to withstand margin pressures, if any in the future.

The company’s Petcare vertical (Zigly) continues to grow rapidly and clocked monthly revenue (GMV) with a run rate revenue of Rs.3 crores on the back of expanding retail footprints, innovative sales promotion, and increasing online presence. The acquisition of Petsy, an online venture in the Petcare space, is complete and would further accelerate the growth of the Petcare vertical.

The Speciality Chemical subsidiary is set to launch newer adhesives in H2, FY24.

Commenting on Company’s performance, Pankaj Poddar, Group CEO, Cosmo First Ltd. said “The Company is working on multiple growth drivers including speciality BOPET films, sun shield film, rigid packaging, specialty chemicals, petcare, etc. We are optimistic that these initiatives will provide impetus to faster growth of the Company in the coming years. In the short-term, we remain focused on increasing specialty sales & grow new businesses.”