Shares of packaging films maker, Cosmo Films, rose as much as 9.4 per cent to record high of Rs 1,475 a day after it reported June quarter earnings. Cosmo Films net profit in April-June period came in at Rs 87 crore, marking an increase of 85 per cent from Rs 47 crore during the same period last year. Its revenue increased 43 per cent annually to Rs 688 crore.
During the quarter, Cosmo FIlms' earnings before interest, tax, depreciation and amortisation (EBITDA) or operating profit jumped 53 per cent to Rs 142 crore. Higher EBITDA came on account of higher speciality sales, better operating margins and uptick performance by subsidiaries, Cosmo Films said in a press release.
Expected capacity expansion (Specialized Polyester line), focus towards growing specialty sales, diversification into specialty chemicals, FMCG business & pet care would drive further growth in coming years, Cosmo Films added.
In the April-June period, Credit rating agency CRISIL has upgraded Company's long-term credit rating during the quarter to AA- and short-term credit rating to A1+ with a stable outlook. The upgrade in credit rating reflects a strong financial profile as well as continuous growth of Cosmo Films in specialty films.
"The company is enhancing its specialty films portfolio and has launched multiple innovative products making the product pipeline even stronger. Sustainability is at our core, & Cosmo is continuously reducing its carbon footprint while helping brands on more sustainable packaging. Cosmo Specialty Chemicals, a subsidiary of Cosmo Films forayed into the Fast Moving Consumer Goods (FMCG) industry with the launch of 'Fabritizer', a product which assures a 99.9 per cent protection against viruses and bacteria on clothes," Pankaj Poddar, CEO, Cosmo Films said in a statement.
As of 12:54 pm, Cosmo Films shares traded 5 per cent higher at Rs 1,417, outperforming the Sensex which was up 0.4 per cent.
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