Cosmo Films surges 7% on strong Q3 results, Rs 25/share interim dividend

The company's board of directors have fixed February 8, 2021 as the record date for payment of the interim dividend

Shares of Cosmo Films surged 7 per cent to Rs 475 on the BSE in intra-day trade on Thursday after the company reported a strong 75 per cent year on year (YoY) jump in consolidated net profit at Rs 63 crore in the December quarter (Q3FY21), on the back of healthy operational performance.

The company's board of directors have declared interim dividend of Rs 25 per share for FY21 and fixed February 8, 2021 as the record date.

Meanwhile, the company, engaged in containers and packaging business, posted highest-ever Ebitda (earnings before interest, taxes, depreciation, and amortisation) of Rs 112 crore during Q3FY21, despite 7 per cent lower volumes. Ebitda margin improved 630 basis points (bps) at 19.6 per cent from 13.3 per cent in Q3FY20.

The strong operational performance was on the back of higher speciality sales, better operating margins from last year and inventory gain of Rs 7 crore due to raw material price increase. Net revenues, however, declined 1.4 per cent YoY at Rs 572 crore during the quarter.

The management said "the Company has posted highest ever Ebitda during Q3FY21 partly due to de-bottlenecking one large production line to enable specialty films production. The Company is set to further grow the specialty films production with the same".

"The Company’s subsidiary will soon start commercialization of textile chemicals developed through in-house R&D. The Company’s sustainability drive is helping in reducing various wastages and carbon footprint and also contributing towards cost reduction. Specialized BOPET, Specialized Chemicals and Pet Care projects are progressing as per plan," the management said.

At 09:46 am, Cosmo Films was trading 5 per cent higher at Rs 468, against 0.59 per cent decline in the S&P BSE Sensex. The stock hit a 52-week high of Rs 491, on August 2020.