Cosmo Films Limited, a leading global player in speciality films for packaging, labeling and lamination applications, has announced its results for the fourth quarter and the annual financial results for the year ending on 31st March 2017.
In Q4 FY17, sales revenue increased by virtue of new production line commissioned in Feb 2017 and continued increase in speciality sales which grew by 20% on YoY basis. However, the margins remained under pressure for most part of the-quarter due to lingering effects of demonetization.
Towards the end of Q4, there was some improvement in the margins, a trend which is expected to continue.
The above together with saving in taxes due to effect of investment allowance on new production line lead to growth in PAT by 36% QoQ and 17% YoY. On a full year basis, the revenue fell marginally though the volume increased by 5% due to pass through impact of drop in raw material prices and drop in commodity margins.
Commodity margins had one of the lowest run with a drop of almost 35% in the last year.
The impact from lower margins was compensated by significant growth in speciality sales & operational efficiency improvements.
