Cosmo Films Q3 net profit rises 66% to Rs 104.4 crore; revenue up 35%

Packaging firm Cosmo Films Ltd on Tuesday reported a 66.41 per cent jump in its consolidated net profit to Rs 104.42 crore for the third quarter ended December 2021, helped by lower finance cost and effective tax rate.

The company had posted a consolidated net profit of Rs 62.75 crore in the October-December quarter a year ago, Cosmo Films said in a BSE filing.

Revenue from operations was at Rs 770.53 crore, up 34.64 per cent from Rs 572.31 crore in the corresponding quarter of the previous fiscal.

"Q3FY22 EBITDA has increased by 44 per cent (vs. corresponding quarter) on the back of higher speciality sales, better-operating margins and improved performance by subsidiaries.

"Enhanced EBITDA together with lower finance cost and lower effective tax rate led to increase in PAT by 65%," Cosmo Films said in a post-earnings statement.

Total expenses increased 29.55 per cent to Rs 645.26 crore, as against Rs 498.07 crore earlier.

During the quarter, the company received sanction under the production linked incentive (PLI) scheme for the production of speciality films for use in electronic products.

The incentive under the scheme will be for five years on 100 per cent production of its new plant.

In a separate filing, Cosmo Films said its board on Tuesday declared a second interim dividend of 100 per cent, or Rs 10 per equity share.

"Together with first interim dividend, total dividend for FY22 would add up to Rs.35 per equity share compared to Rs 25 for FY21," it said.

Shares of Cosmo Films Ltd on Tuesday settled at Rs 1,797.90 on BSE, up 2.53 per cent from the previous close.