Cosmo Films Q1 results: Net profit up 69% at Rs 47 cr

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NEW DELHI: Cosmo Movies Ltd on Wednesday reported a 69.15 per cent enhance in consolidated internet revenue at Rs 46.99 crore for the primary quarter ended June, 2020, helped by improved working margins.

The corporate, which manufactures speciality movies for packaging, lamination, labeling and artificial paper, had posted a consolidated internet revenue of Rs 27.78 crore in April-June quarter a 12 months in the past, Cosmo Movies mentioned in a BSE submitting.

Nevertheless, its income from operations declined 11.04 per cent to Rs 481.29 crore in the course of the quarter underneath overview as in opposition to Rs 541.02 crore within the corresponding quarter of earlier fiscal.

“The corporate posted an EBITDA of Rs 93 crore throughout Q1 FY21 on the again of upper speciality gross sales (up by 20 per cent) and improved working margins,” Cosmo Movies mentioned in a publish incomes assertion.

“Pent-up demand from earlier quarter and provides opening up in phased method led to a beneficial demand provide state of affairs and improved margins,” it added.

The corporate’s whole bills in Q1 FY21 declined 17.16 per cent to Rs 420.64 crore as in opposition to Rs 507.83 crore a 12 months in the past.

In a separate submitting, Cosmo Movies mentioned the corporate is foraying into pet care enterprise.

“The board has given in-principle approval for firm’s foray in pet care enterprise. Pilot launch is anticipated by early subsequent 12 months,” it mentioned.

Commenting on the event, Cosmo Movies CEO Pankaj Poddar mentioned the corporate goes forward with the pilot launch in Nationwide Capital Area (NCR), investing about Rs 15 crore over the subsequent 18 months to establish the viability of pet care enterprise to launch it at a bigger scale.

“The general funding is anticipated to stay marginal vis-Ã -vis dimension of the prevailing enterprise. Pet care enterprise has been rising in India at 22 per cent CAGR.

“With smaller households, rising earnings ranges and restricted social lives (particularly publish Covid), pet adoption has elevated and anticipated to develop many folds,” Poddar mentioned.

The enterprise state of affairs is extremely fragmented and there are not any organized gamers in India providing end-to-end complete answer to the purchasers, and Cosmo expects to refill this void.

Pet care is a low capex enterprise, whereas model constructing would require some investments within the preliminary years, he mentioned.

“The corporate believes the enterprise will ship excessive returns, excessive valuation and add important worth to shareholders,” Poddar added.

Shares of Cosmo Movies on Wednesday closed 6.75 per cent larger at Rs 480.20Â on the BSE.

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