COSMO FILMS LTD - Q2 FY 21 RESULTS REVIEW - DT 08 12 20

 

COSMO FILMS LTD

Q2 FY 21 RESULTS REVIEW

DT 08 12 20

COMPANY OVERVIEW

Cosmo Films Ltd is engaged in the production of Wet Laminating, Printing and Pouching, Label Films, Soap Wrap Films, Over Wrap Films, Tape & Textile and Thermal Laminating Film for Graphic Finishing.

The company has recently acquired a PVDC and Acrylic coating plant from France and has started making inroads in the high barrier packaging material as well as coated Label segments.

MANAGEMENT

Ashok Jaipuria            :     Chairman & Managing Director

Anil Kumar Jain           :     Director - Corporate Affairs

Mr. Pankaj Poddar       :     Chief Executive Officer

Mr. Neeraj Jain           :     Chief Financial Officer

Mr. Sanjay Chincholikar : Head-Operations (India Films Business)

 

QUARTERLY RESULTS :

 

Cosmo Films (in Rs. Cr.)	Sep '20	Jun '20	Sep '19	YOY	QOQ
Net Sales	559.78	481.29	555.91	0.7	16.31
FINAL N P T	52.71	46.99	28.7	83.66	12.17
Equity	19.44	19.44	19.44	0	0
Basic EPS:FV:RS.10	27.75	24.8	14.98	85.25	11.9
Consumption of Raw Materials	341.9	305.56	367.03	-6.85	11.89
Purchase of Traded Goods	0.22	0.08	0.31	-29.03	175
Increase/Decrease in Stocks	5.89	-21.56	12.03	-51.04	-127.32
Employees Cost	44.88	42.88	40.16	11.75	4.66
Depreciation	14.05	14.09	13.33	5.4	-0.28
Other Expenses	75.23	67.25	76.35	-1.47	11.87
Total Expenditure	482	408	509	-5.3	18.14
P/L Before Other Inc., Int., Excpt. Items & Tax	77.61	72.99	46.7	66.19	6.33
Other Income	7.12	5.74	4.5	58.22	24.04
P/L Before Int., Excpt. Items & Tax	84.73	78.73	51.2	65.49	7.62
Interest	11.51	12.34	13.47	-14.55	-6.73
P/L Before Tax	73.22	66.39	37.73	94.06	10.29
Tax	20.51	19.4	9.03	127.13	5.72

 

Key Highlights –Q2, FY20-21 Results :

The Company’s volume got normalized during Q2, FY21 which was impacted in Q1,FY21 temporarily due to Covid-19 pandemic impact.

The Company posted highest ever EBITDA of Rs.99 crores during Q2FY21 on the back of higher speciality sales and improved operating margins from last year.

The Company has initiated commercial production from Masterbatch plant during Q2,FY21 which will pick volume during H2,FY21.

The Company is set to grow specialty further as we are enabling some large production lines to manufacture specialty products from Q4,FY21.

The specialized BOPET project and Pet care are progressing well in line with the plan.

Covid-19 pandemic had marginal impact during the quarter.

The Company expects that Covid-19 impact may remain only marginal in the following quarters too barring unforeseen conditions.

WHY INVEST :

Strong Financials (Sept 2020)

-ROE 20%

-ROCE 18%

-Net Debt/EBITDA 1.4  times

 

Annual Results	Mar-20	Mar-19	Mar-18	Mar-17	Mar-16
Sales	2,203	2,156	1,936	1,586	1,620
Net Profit	113	61	64	85	96
Other Income	19	20	34	15	5
Total Income	2,222	2,176	1,970	1,602	1,626
Total Expenditure	2,007	2,049	1,854	1,475	1,471
EBIT	215	127	116	127	154
Interest	52	55	52	35	30
Tax	49	10	0	5	27
cash flows	Mar-20	Mar-19	Mar-18	Mar-17	Mar-16
Operating Activities	240	142	82	50	222
Investing Activities	-105	-90	-122	-222	-79
Financing Activities	-165	-35	61	165	-137
Others	0	0	0	0	0
Net Cash Flow	-30	17	21	-7	6

 

MP  442

PE   3.98      

VOLUMES            

52 Wk L/H     187.2     491 CURRENT :442

TECHNICAL RATING       

VERY BULLISH    

VOLUMES

5-Day  :  83,521

10-Day :  63,446

30-Day  :  98,546

 

historical prices
3 Yrs BEF	356.15
2 YRS BEF	212.85
1YR BEF	244
3M BEF	389.3
1M BEF	431
1 WEEK	443
NOW	443

 

Share Holding Pattern in (%)
Standalone	Jun-20	Mar-20	Dec-19	Sep-19
Promoters	44.15	44.15	44.15	44.15
Pledged	0	0	0	0
FII/FPI	1.93	1.98	1.95	2.03
Total DII	12.36	11.82	12.08	11.47
Fin.Insts	0.12	0.39	0.28	1.08
Insurance Co	0	0	0	0
MF	0.71	0.71	0.71	0.71
Others DIIs	11.53	10.72	11.09	9.68
Others	41.56	42.05	41.83	42.35
Total	100	100	100.01	100

 

Type	Dividend%	Ex-Dividend date
Interim	150	Feb 20, 2020
Final	60	Jul 18, 2019
Final	60	Jul 26, 2018
Final	100	Jul 27, 2017
Interim	100	Mar 21, 2016

 

Per Share Ratios	Mar-20	Mar-19	Mar-18	Mar-17	Mar-16
Basic EPS (Rs.)	59.19	31.89	33.62	44.73	49.5
Diluted Eps (Rs.)	59.19	31.89	33.62	44.73	49.5
Book Value [Excl. Reval Reserve]/Share (Rs.)	381.13	349.92	318.76	294.74	234.71
Dividend/Share (Rs.)	15	6	6	10	10
Face Value	10	10	10	10	10

 

Margin Ratios	Mar-20	Mar-19	Mar-18	Mar-17	Mar-16
Gross Profit Margin (%)	12.72	8.41	8.65	10.66	12.14
Operating Margin (%)	9.77	5.91	6.01	8	9.94
Net Profit Margin (%)	5.14	2.83	3.32	5.4	5.93

 

Return Ratios	MAR 2020	MAR 2019	MAR 2018	MAR 2017	MAR 2016
Return on Networth / Equity (%)	15.31	8.98	10.39	14.96	21.09
ROCE (%)	17.65	10.49	5.69	8.20	12.69
Return On Assets (%)	5.93	3.26	3.62	5.54	8.42

 

Leverage Ratios	Mar-20	Mar-19	Mar-18	Mar-17	Mar-16
Debt to Equity (x)	0.89	1.03	1.12	0.98	0.75
Interest Coverage Ratios (%)	4.1	2.28	2.22	3.54	5.34

 

 

Nov 2020Investors Presentation

Company Overview :

Production Facilities

Uniquely positioned with good mix of specialty and commodity films.

Widest product portfolio under one roof.

Multiple lines allowing dedicated runs for speciality films. Strong Export Footprints Strong R&D Focus

Collective R&D experience of over 100 years.

Recently received one patent for Release BOPP Film and applied for a new patent for High Barrier CPP Film. This in addition to 6 patents in India and 3 in US.

Strong History & Leading Position

Established in 1981, Cosmo Films Ltd.- is  the pioneer of BOPP Films Industry in India.

Promoted by Mr. Ashok Jaipuria, the company is also the largest BOPP film exporter from India.

Global Leader in Thermal Lam Films

Unique Proposition:

Units  in India, Korea, & USA with annual  installed capacity as follows:

BOPP Films: 196K MT

Thermal Films: 40K MT

Coated Specialty Films:20K MT

Metalized Films:22K MT

CPP Films: 10K MT

Masterbatch: 10k MT

Corporate Governance & Professional Management Certification, Awards & Recognition

ISO 9001:2000 ISO 14001:2004

British Retail Consortium (BRC)

American Institute of Baking (AIB)

CII Excellence Award for 5S

Winner of several product innovation awards  viz. PFFCA,  Asia Star etc.

Strong Financials

Continuous growth and profitability track record.

With the acquisition of GBC Commercial Print in June 2009, Cosmo is now the world’s largest producer of thermal lamination films.

Strong Independent board

High on Corporate Governance

Professional Management

Leading BOPP Films exporter from India with export to more than 100 countries.

VISION 2020 : To be the most preferred global brand offering value added oriented films for packaging, labels, lamination and industrial applications

PRODUCT PORTFOLIO :

PACKAGING FILMS

LAMINATION FILMS

LABEL FILMS

INDUSTRIAL FILM

PLANTS :

Waluj, Aurangabad, India

Karjan, Vadodara, India

Shendra, Aurangabad,

Asan, Korea

 

Key Focus Areas

Speciality and Product Mix

Skewing Product Mix more towards  specialty products, with  consequently better margins and  removing cyclability impact.

R&D and Sustainability Focus

More & more green practices in  manufacturing, more films enabling  circular economy. Innovation led products.

Customer Centric

Creating Customer Centric  Culture:-Robust Service Offer,  New Offices Overseas, CRM,  Establishing tripartite  partnership between us,  Converter and Brand Owners.

Capex Strategy and Capacity Expansion

Further Capacity expansion is  planned mainly in Value Add  segment and sustainability for next 2 years.

Diversification

Playing in strength areas, diversifying into special chemical manufacturing and B2C for specific products Pets Care vertical

 

Key Specialty Products launched during last few quarters

Packaging Films

Lamination Films

Label Films

Industrial Films

Fragranced  Packaging Films

o Designed to slowly release a fragrance which lasts for a long time.

Recyclable Laminates  for Soap  Wrap

o Mainly use to overwrap Soap.

Transparent Antifog Film

o Suited for large packs and pouches used in the fresh food packaging.

Universal PET Lidding Film

oUniversal lidding film which laminates with different plastic  and paper materials and has easy release

Antimicrobial Thermal Lamination Film

o Effective against a broad range of bacteria, inhibits germ growth and supports optimum hygiene.

High Tear Resistant Synthetic Paper (CSP)

oOriginally designed for high tear resistant tag applications. 

Also offers moisture, oil and chemical resistance just like  standard synthetic paper.

Laser Printable (Dry Toner)

Both Side Coated White Synthetic Paper

High Gloss Metalized Label Film

o Mirror Finish Glossy film which can be printed with high speed flexo printing machine. Suitable for premium labeling  applications for instance liquor & personal care

 

Customer Centricity to become Global preferred Player