{"id":136887,"date":"2022-11-15T04:55:30","date_gmt":"2022-11-15T09:55:30","guid":{"rendered":"https:\/\/44.250.171.167\/?p=136887"},"modified":"2022-11-15T04:55:31","modified_gmt":"2022-11-15T09:55:31","slug":"cosmo-first-nse-cosmofirst-posts-decent-revenue-numbers-in-q2-fy2023-but-profits-are-impacted-by-global-hues","status":"publish","type":"post","link":"https:\/\/alphastreet.com\/india\/cosmo-first-nse-cosmofirst-posts-decent-revenue-numbers-in-q2-fy2023-but-profits-are-impacted-by-global-hues\/","title":{"rendered":"Cosmo First (NSE: COSMOFIRST): Posts Decent Revenue Numbers in Q2 FY2023 But Profits are Impacted by Global Hues"},"content":{"rendered":"\n<p>Cosmo First Ltd. (<a href=\"https:\/\/44.250.171.167\/symbol\/cosmofirst\/\" target=\"_blank\" rel=\"noreferrer noopener\">NSE: COSMOFIRST<\/a>) reported mixed financial results for Q2 FY2023 (ended September 30, 2022). Revenues improved but profits faltered.\u00a0<\/p>\n\n\n\n<p>After posting lower profits, the stock is trading in the red, which indicates investors\u2019 disappointment.\u00a0<\/p>\n\n\n\n<p><strong>Revenues Up 3.2% YoY, Profit Drops<\/strong>\u00a0<\/p>\n\n\n\n<p>On a standalone basis, Cosmo First recorded total sales of Rs 739 crore, up 3.2% YoY riding on decent growth in packaging films. Revenues from operations grew 2.5% YoY to Rs 725 crore. \u00a0<\/p>\n\n\n\n<p>Net profit stood at Rs 69 crore, down 6.8% on a YoY basis. Results were impacted by lower profits in packaging films. Earnings per share (EPS) were Rs 25.17, down 6.8% from the prior-year quarter.\u00a0<\/p>\n\n\n\n<p>EBITDA came in at Rs 117 crore, down 8.6% YoY.\u00a0<\/p>\n\n\n\n<p>Packaging Films recorded revenues of Rs 775 crore, up 2.1% YoY. However, EBIT came in at Rs 118 crore, down 18.6% YoY. <\/p>\n\n\n\n<p><strong>Margin &amp; Expenses<\/strong><\/p>\n\n\n\n<p>Total expenses stood at Rs 646 crore, up 5.7% YoY. EBITDA margins were 16%, down from 18% in Q2 FY2022.&nbsp;<\/p>\n\n\n\n<p><strong>Balance Sheet Position<\/strong>\u00a0<\/p>\n\n\n\n<p>On a standalone basis, as of September 30, 2022, total assets stood at Rs 2,781 crore compared to Rs 2,543 crore as of March 31, 2022. Cash and cash equivalents were Rs 11.85 crore, down 47.9% from the March quarter. Annualized ROE and ROCE stood at 32% and 25%, respectively.\u00a0<\/p>\n\n\n\n<p><strong>Management Comments<\/strong>\u00a0<\/p>\n\n\n\n<p>Commenting on the quarterly results, management commented, \u201cCommissioning of several new production lines in India within a short span coupled with subdued order flow from overseas customers (geo-political crisis, supply chain corrections, and currency fluctuations) led to disruption of overall demand supply scenario as well as the margins. Impact on Cosmo was minimal as our strong and growing portfolio of speciality films is least prone to competitive pressures. Margins were also under pressure in the overseas subsidiaries due to increase in raw material costs, weakening of foreign currencies against US dollar particularly in Japan and Korea. The near-term outlook for non-specialty films could be challenging however the Company will continue to expand on specialty films growth. BOPET line was commissioned two days before the end of Q2. Our focus shall be to rapidly develop value add and speciality products.\u201d\u00a0<\/p>\n\n\n\n<p><strong>Long-Term Targets<\/strong>&nbsp;<\/p>\n\n\n\n<p>Cosmo First targets over 80% volume from Speciality &amp; Semi Speciality segment by 2024. Total Capex over the next few years is expected at Rs 590 crores.&nbsp;&nbsp;<\/p>\n\n\n\n<p>For Speciality Chemicals, the company expects 10% -15% revenue growth with over 25% ROCE in about 5 years.\u00a0<\/p>\n\n\n\n<p><strong>Our Viewpoint<\/strong>\u00a0<\/p>\n\n\n\n<p>In the fast-evolving world, Cosmo First has turned triumphant in the Indian packaging industry. Though the company\u2019s recent earnings report reflects the impact of macroeconomic challenges, the company\u2019s diversified business model stands it out in the industry. Additionally, to cater to the rising demand in the sector, Cosmo First is on the path of expanding its services and products. Therefore, investors with buying the dips strategy can build a position in the stock as it is hovering near its 52-week low.&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Cosmo First Ltd. (NSE: COSMOFIRST) reported mixed financial results for Q2 FY2023 (ended September 30, 2022). Revenues improved but profits faltered.\u00a0 After posting lower profits, the stock is trading in the red, which indicates investors\u2019 disappointment.\u00a0 Revenues Up 3.2% YoY, Profit Drops\u00a0 On a standalone basis, Cosmo First recorded total sales of Rs 739 crore, [&hellip;]<\/p>\n","protected":false},"author":1936,"featured_media":136888,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2}},"categories":[392,5],"tags":[11179,10169,11181,8196],"class_list":["post-136887","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-earnings","category-latest","tag-cosmo-first","tag-earnings","tag-films","tag-packaging"],"jetpack_publicize_connections":[],"jetpack_featured_media_url":"https:\/\/alphastreet.com\/india\/wp-content\/uploads\/2022\/11\/Info-Cosmo-Q2-2.png","jetpack_likes_enabled":false,"jetpack-related-posts":[{"id":136864,"url":"https:\/\/alphastreet.com\/india\/infographic-cosmo-posts-6-8-drop-in-q2-profits-on-global-hues-management-remains-optimistic\/","url_meta":{"origin":136887,"position":0},"title":"Infographic: Cosmo Posts 3.2% Rise in Q2 Revenues, Management Remains Optimistic","author":"Priti_Ramgarhia","date":"November 15, 2022","format":false,"excerpt":"Cosmo First Ltd. (NSE: COSMOFIRST) posted its second-quarter fiscal 2023 earnings results.\u00a0 For the quarter, on a standalone basis, the company had total sales of \u20b9739 crores, indicating a rise of 3.2% on a year-over-year basis.\u00a0 Cosmo First had a net profit of \u20b969 crores, which decreased 6.8% on a\u2026","rel":"","context":"In &quot;AlphaGraphs&quot;","block_context":{"text":"AlphaGraphs","link":"https:\/\/alphastreet.com\/india\/category\/infographics\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2022\/11\/Info-Cosmo-Q2-1.png?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2022\/11\/Info-Cosmo-Q2-1.png?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2022\/11\/Info-Cosmo-Q2-1.png?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2022\/11\/Info-Cosmo-Q2-1.png?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2022\/11\/Info-Cosmo-Q2-1.png?resize=1050%2C600&ssl=1 3x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2022\/11\/Info-Cosmo-Q2-1.png?resize=1400%2C800&ssl=1 4x"},"classes":[]},{"id":147475,"url":"https:\/\/alphastreet.com\/india\/earnings-cosmo-first-ltd-nse-cosmofirst-q4fy23-results-out-total-income-fell-13-yoy\/","url_meta":{"origin":136887,"position":1},"title":"Earnings | Cosmo First Ltd. (NSE: COSMOFIRST) | Q4FY23 Results Out; Total Income fell 13% YoY.","author":"Divyansh_Kasana","date":"May 29, 2023","format":false,"excerpt":"Cosmo First Ltd. (NSE: COSMOFIRST) is a leading producer of BOPP films, established in 1981 and based in India. The company is the largest BOPP film exporter in India and the world's largest producer of thermal lamination films. It is also a global leader in some specialty segments, such as\u2026","rel":"","context":"In &quot;Earnings&quot;","block_context":{"text":"Earnings","link":"https:\/\/alphastreet.com\/india\/category\/earnings\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/05\/4b0b185d-fd09-4e7e-947d-ef141089055f-6-4.png?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/05\/4b0b185d-fd09-4e7e-947d-ef141089055f-6-4.png?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/05\/4b0b185d-fd09-4e7e-947d-ef141089055f-6-4.png?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/05\/4b0b185d-fd09-4e7e-947d-ef141089055f-6-4.png?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/05\/4b0b185d-fd09-4e7e-947d-ef141089055f-6-4.png?resize=1050%2C600&ssl=1 3x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/05\/4b0b185d-fd09-4e7e-947d-ef141089055f-6-4.png?resize=1400%2C800&ssl=1 4x"},"classes":[]},{"id":138525,"url":"https:\/\/alphastreet.com\/india\/cosmo-first-ltd-nse-cosmofirst-research-report-reports-reasonable-revenue-outperforms-the-indian-packaging-industry-on-ebit-margin-and-pat-margin-in-q2-fy23\/","url_meta":{"origin":136887,"position":2},"title":"Cosmo First Ltd. (NSE: COSMOFIRST) Research Report: Reasonable Revenue Growth, Outperforms the Indian Packaging Industry on EBIT margin and PAT margin in Q2 FY23","author":"Divyansh_Kasana","date":"January 8, 2023","format":false,"excerpt":"Cosmo First Ltd. (NSE: COSMOFIRST), established in 1981 as Cosmo Films Limited, is engaged in the manufacturing of specialty films for packaging, lamination, and labeling applications. Speciality films are used for flexible packaging applications and include print and pouching films, barrier films, overwrap films, lidding films, etc. Food, personal care,\u2026","rel":"","context":"In &quot;Analysis&quot;","block_context":{"text":"Analysis","link":"https:\/\/alphastreet.com\/india\/category\/stock-analysis\/"},"img":{"alt_text":"Research Summary","src":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2020\/04\/Research-summary.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2020\/04\/Research-summary.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2020\/04\/Research-summary.jpg?resize=525%2C300&ssl=1 1.5x"},"classes":[]},{"id":134328,"url":"https:\/\/alphastreet.com\/india\/infographic-cosmo-posts-robust-q1-results-management-remains-optimistic\/","url_meta":{"origin":136887,"position":3},"title":"Infographic: Cosmo Posts Robust Q1 results, Management Remains Optimistic","author":"Priti_Ramgarhia","date":"August 10, 2022","format":false,"excerpt":"Cosmo First Ltd. (NSE: COSMOFIRST) recently posted its first-quarter fiscal 2023 earnings results.\u00a0 For the quarter, on a standalone basis, the company had total sales of \u20b9803 crores, indicating a rise of 22.1% on a year-over-year basis.\u00a0 Cosmo First had a net profit of \u20b988 crores, which jumped 30.2% on\u2026","rel":"","context":"In &quot;AlphaGraphs&quot;","block_context":{"text":"AlphaGraphs","link":"https:\/\/alphastreet.com\/india\/category\/infographics\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2022\/09\/Cosmo-First-Limited-Logo.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2022\/09\/Cosmo-First-Limited-Logo.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2022\/09\/Cosmo-First-Limited-Logo.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2022\/09\/Cosmo-First-Limited-Logo.jpg?resize=700%2C400&ssl=1 2x"},"classes":[]},{"id":135057,"url":"https:\/\/alphastreet.com\/india\/infographic-reliance-industries-posts-strong-revenues-in-q2-fy2023-management-sounds-positive\/","url_meta":{"origin":136887,"position":4},"title":"Infographic: Reliance Industries Posts Strong Revenues in Q2 FY2023, Management Sounds Positive","author":"Priti_Ramgarhia","date":"October 21, 2022","format":false,"excerpt":"Reliance Industries Ltd (NSE: RELIANCE) reported mixed financial results for Q2 FY2023 (ended September 30, 2022). On a consolidated basis, RIL recorded gross revenues of Rs 2,53,497 crore, up 32.4% YoY riding on broad-based growth almost in all verticals. Revenues from operations grew 33.7% YoY to Rs 2,32,863 crore. 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Revenue surpassed expectations, while earnings disappointed. In anticipation of mixed results, investors seem cautious about the company, reflecting a more than 1% fall in shares at Friday\u2019s close, prior to the earnings release. 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