COSMOFIRSTNSEAugust 22, 2025

COSMO FIRST LIMITED

6,726words
131turns
11analyst exchanges
1executives
Management on call
Pankaj Poddar and Group Chief Financial Officer Mr. Neeraj Jain. Starting off with the statutory declaration
Certain statements in the conference call may be forward-looking. These statements are based
Key numbers — 40 extracted
Rs.800 crore
lking about the Financial Results for the quarter: Consolidated sales for the June ‘25 quarter is Rs.800 crore, which is higher by 16% from June 24 quarter, primarily on the back of higher volume by 19% and h
16%
for the quarter: Consolidated sales for the June ‘25 quarter is Rs.800 crore, which is higher by 16% from June 24 quarter, primarily on the back of higher volume by 19% and higher BOPP margins. The
19%
800 crore, which is higher by 16% from June 24 quarter, primarily on the back of higher volume by 19% and higher BOPP margins. The EBITDA for the quarter has increased to Rs.116 crores, compared to R
Rs.116 crore
back of higher volume by 19% and higher BOPP margins. The EBITDA for the quarter has increased to Rs.116 crores, compared to Rs.84 crores during June 24 quarter. The improvement in EBITDA is backed by four
Rs.84 crore
% and higher BOPP margins. The EBITDA for the quarter has increased to Rs.116 crores, compared to Rs.84 crores during June 24 quarter. The improvement in EBITDA is backed by four primary factors: 1. High
Rs.4 crore
Cosmo First Limited August 14th ,2025 3. Improved cost rationalization by about Rs.4 crore. 4. Enhanced performance of our specialty chemical subsidiary by close to Rs.4 crore. BOPP film
Rs.25
pecialty chemical subsidiary by close to Rs.4 crore. BOPP film margins have been running close to Rs.25 per kg during June ‘25 quarter as against Rs.21 per kg in March ‘25 quarter and Rs.19 per kg in Ju
Rs.21
e. BOPP film margins have been running close to Rs.25 per kg during June ‘25 quarter as against Rs.21 per kg in March ‘25 quarter and Rs.19 per kg in June 24 quarter. During June ‘25 quarter, the comp
Rs.19
ng close to Rs.25 per kg during June ‘25 quarter as against Rs.21 per kg in March ‘25 quarter and Rs.19 per kg in June 24 quarter. During June ‘25 quarter, the company has commissioned two key assets:
45%
y of close to 81,000 metric tons, which started operations from June beginning and added close to 45% to the company BOPP capacity. Second is window film line which started operations in May 2025 und
rs,
ibutors. Moving to outlook: The company has invested in key packaging assets over last three years, including BOPP line, CPP line, window film line and paint production film. All these investments h
10%
ake Cosmo more competitive in the market. The company is growing specialty film sales by close to 10% CAGR growth over last six years, and we expect this trend to continue. For film business in fact,
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Guidance — 20 items
Moving to outlook
opening
“The company is growing specialty film sales by close to 10% CAGR growth over last six years, and we expect this trend to continue.”
Moving to outlook
opening
“For film business in fact, the company's focus will be on taking full leverage of new investments, grow specialty film sales and further push down the cost.”
Some initiative from ESG
opening
“In FY’25 company has used more than 50% of its power consumption from renewable sources, which we expect to further increase to about two third in one to two years period.”
Management
qa
“We will be filling up with specialty films over a period of time.”
Management
qa
“Our first target is the domestic market.”
Rehan Saiyyed
qa
“Sir, on Zigly demerger timeline, you have indicated the medium-term plan to demerge Zigly.”
Rehan Saiyyed
qa
“So, can you share a more specific timeline, whether you intend to bring in a strategic or a financial partner before the demerger?”
Management
qa
“I feel that it's very difficult to assess at this stage what time we will bring, but more than likely it will be anywhere by latest by 2028, or 29 it can happen even earlier than that, but it's too early to predict anything on this.”
Management
qa
“We have to also remind the investors and the listeners here that in this year four lines have to be added, out of which three have already been added and the fourth line will be added soon.”
Management
qa
“What we expect is that the rigid packaging should start making positive EBITDA.”
Risks & concerns — 5 flagged
I feel that it's very difficult to assess at this stage what time we will bring, but more than likely it will be anywhere by latest by 2028, or 29 it can happen even earlier than that, but it's too early to predict anything on this.
— Management
See, it's always more difficult to import food grade film.
— Management
Monthly revenue for each segment, it will be little difficult to provide over the call.
— Management
Very difficult to say that, but as I said earlier, that close to 15,000 tons of production was being done by that company, and already 12,000 tons of capacity coming to the market, so there is not too much of an impact from that.
— Management
It is difficult to quantify at this moment.
— Management
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Q&A — 11 exchanges
Q
I have couple of questions. So, sir my first question is around the BOPP line product mix strategy, the new 81,000 ton BOPP line is already running here with full utilization within a month. So, how soon will it have a higher sale in product mix.
Management
The new BOPP line will ramp up to 100% capacity within the next two to three months. We will be filling up with specialty films over a period of time. So, our objective is again to have more specialty mix even from the new line. Okay. And then next, I want some more understanding on the windows films global opportunity. What are you prioritizing, domestic or exports and what would be your strategy? Our first target is the domestic market. We feel there is a very significant potential to make a brand here, and we have already started with certain ATL and BTL activities to create the brand, it's
Q
Just a clarification, since first time we have reported segment wise revenue in our quarterly results. So, in that which all line of businesses we have included, when we have mentioned a separate segment as others reported turnover as Rs.25 crore approximately Q1 FY’26, just a clarification.
Management
The segments include packaging, which is films business, specialty chemical of course the specialty chemical business which we have in 100% subsidiary, pet care is a Zigly business. Then others include Sunshield and rigid packaging business. These two are relatively very new businesses and therefore been included in others. Once we scale them up, we will evaluate to show them as well separately. Sure, thanks for this clarification. So, my first question is about our newly commissioned BOPP line that was commissioned in the last week of May 2025. So, considering the current industry dynamics, s
Q
Sir, my question persists to the Rs.25 crores of revenue what we have shown between window films and rigid packaging. Sir, in one of the earlier conversations you mentioned that the breakeven sales for window films could be anywhere between Rs.30, Rs.35 crores. So, let's say between Rs.25 crores of revenue, how much would be window films because we have just started, so the losses in this division is predominantly for the window films or if you can just help us with respect to this?
Management
The first is this vertical is no longer just a window film. If you remember we also launched Paint protection films and after that we also launched ceramic coatings for the car. We are the first manufacturer of ceramic coatings for the car. Till now, all these ceramic coatings have been coming from overseas market. So, Paint protection film is a premium solution, while ceramic coating is a little lower price solution. As of now, the window film sale in the one month of operation is still a small number. And the overall loss is actually a loss in both the business verticals, which is rigid pack
Q
My question is related to the margins, in the month of June, we have very good margin in the BOPP line. But then some of the competitors have imported lot of quantities of BOPP films, then the margins and the prices has come down. So, what is the current margin sir, and how do you see the margins going forward because imports will be a threat in the future also?
Management
See lot of dealers in India thought that film companies will take the margins to a very high level. We were mindful of this, and therefore we never took very high price increases, we were always very rational in that. But we were expecting that lot of imports would come, and they came because traders anticipated that companies will increase prices far beyond. Now, these traders are struggling because they are not making those margins that they had expected, many of them will have to sell their inventory at a significant loss. Having said so, this should be a temporary phenomenon, because trade
Q
Sir, I want to know about the monthly revenue for June especially and segmental gross margin in Q1?
Management
It's already there as part of the investor presentation if you see. No, I am asking about the monthly revenue if you can provide it? Monthly revenue for each segment, it will be little difficult to provide over the call. Maybe we will request you to send an email communication, we will come back to you. I would like to add that , our revenue numbers should go up because the new line has been implemented, and even in the new businesses revenue is growing. So, you should be able to see ramp up in revenue numbers in the coming quarters. Okay, sir. Sir, second question is, what is the total curren
Q
My question is regarding import duties with America, what import duties were we paying last year?
Management
Till last year it was 5% and this year it’s 55% at the moment. If they come down to 20% also, then also we will be able to maintain the margins. Yes, if it stays at 20% then we have no problem whatsoever. My next question is regarding Zigly, how many stores are there right now currently? We have already opened 34 centers, and then next three months we will cross 40. 40 by what time? In three months. And how many are cash positive and how many stores are we using money? Some centers have started making money, but we then increased the vet care in all the centers, due to which you can understand
Q
So, when we say 68% share in overall mix of specialty and semi specialty, is it by value or is it by volume sir?
Management
This is by volume. This is by volume? It is (+80%) by value. For value it is +80%? Yes. This speciality prices are always higher compared to the commodity, that's why in value terms, it would always be higher. Okay. And my second question relates to Zigly, so can you give GMV for this quarter, corresponding to the same quarter last year and last quarter, and losses for all the 3 Quarters? Cosmo First Limited August 14th ,2025 So, we can indicate you GMV for the current quarter. Quarter 1, it was close to Rs.16 crore. Rest all other numbers we have always indicated in our investor presentation.
Q
So, exit will be closer to Rs.30 or so. Raja Kumar Vaidyanathan: Okay. So, then you would expect a better Q2 given that your new capacities are in place and you have a better margin?
Management
Sure, Q1 EBITDA is better, largely for the two factors, as we indicated at the beginning of the call, increase in volume and better margins. Based on this Q2 it should be better. Raja Kumar Vaidyanathan: Okay. And just second question is, you said that the competitor who lost his capacity is importing. So, I believe he is importing from his subsidiaries in Europe is that the understanding correct, all the imports coming from European region, or is coming from other Asia Pacific? Import is coming mostly from China. Raja Kumar Vaidyanathan: Okay. On this tariff situation, so if assuming this 50%
Q
I have two questions. First question is with regards to, the competitor whose supply has been kind of put on hold because of the unfortunate incident, how much has that translated or benefited the company directly?
Management
Number or we should even assess that number. Sorry? Frankly, it will not be possible to assess that number. But is it right to say that some amount of demand has come to you guys, and you benefited? Very difficult to say that, but as I said earlier, that close to 15,000 tons of production was being done by that company, and already 12,000 tons of capacity coming to the market, so there is not too much of an impact from that. Okay. And I wanted to understand, if you look at the quarterly run rate the highest quarterly turnover you have done since June 2022, and the margins also are on the highe
Q
I would like to know in your presentation you haven't given any breakup of your overall export sales and domestic sales. So, what's the percentage between these two in terms of revenue?
Management
So, this is 55%, 50% of the domestic sales and the 45% export sales. 45% is exports, and out of 45% how much would be to USA? US, last year we did close to Rs.250 crore or so annualized. Okay. So, that would be around overall, 10% is to USA for you? Well, I would say less than 10% because, if we take the current run rate, it should be close to Rs.4000 crore annualized. So, on that Rs.250 crore, so little less than 10%. Okay. I believe most of sales happen on long term contract basis, which is tagged to the crude pricing, in B2B segments especially, is my understanding correct? It's a mix bag a
Q
Thank you and to summarize, for film business, the company's focus will be on taking full leverage of the new investments, growth specialties and sales will further push down the cost. The company's specialty sales have increased by 10% in FY’25 and the similar trend we expect in the coming years as well, which further strengthens the business model. Among the new business vertical, specialty chemicals are already making decent profit and is growing. Growth and profitability will be the key focus for the other business verticals in the coming quarters, including Cosmo consumer, which includes
Management
Speaking time
Management
61
Moderator
13
Amit Agarwal
12
Yash Madhan
9
Nirav Jimodia
5
Tushar Gupta
5
Vipulkumar Shah
5
Abhijit
5
Aman Kumar
4
Rehan Saiyyed
3
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Opening remarks
Starting off with the statutory declaration
Certain statements in the conference call may be forward-looking. These statements are based on the management's current expectations and are subject to uncertainties and changes in circumstances. These statements are not guarantees of future results. As a reminder, all participant lines will be in the listen-only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing "*" then "0" on your touchtone phone. Please note that this conference is being recorded. Now, may I request Mr. Neeraj Jain to take us through his opening remarks after which we will open the floor for Q&A. Thank you and over to you sir.
Neeraj Jain
Thank you. Good afternoon, ladies and gentlemen, and thank you for joining us on Cosmo June, 2025 Quarter Results Conference Call. Our financial results for the June ‘25 Quarter and Investors Presentation are both available on company’s website. Hope you could go through the same. We will begin this call with a brief opening remark on the Management which may be followed by the question. First, talking about the Financial Results for the quarter: Consolidated sales for the June ‘25 quarter is Rs.800 crore, which is higher by 16% from June 24 quarter, primarily on the back of higher volume by 19% and higher BOPP margins. The EBITDA for the quarter has increased to Rs.116 crores, compared to Rs.84 crores during June 24 quarter. The improvement in EBITDA is backed by four primary factors: 1. Higher volume by 19%. 2. Better BOPP film margins. Cosmo First Limited August 14th ,2025 3. Improved cost rationalization by about Rs.4 crore. 4. Enhanced performance of our specialty chemical subsidi
Moving to outlook
The company has invested in key packaging assets over last three years, including BOPP line, CPP line, window film line and paint production film. All these investments have started commercial production in recent months and should provide a significant ramp-up in revenue as well as profitability in coming years. The new film lines are one of the most cost efficient and should make Cosmo more competitive in the market. The company is growing specialty film sales by close to 10% CAGR growth over last six years, and we expect this trend to continue. For film business in fact, the company's focus will be on taking full leverage of new investments, grow specialty film sales and further push down the cost.
Specialty chemical subsidy
The specialty chemical business continues to achieve traction and posted record EBITDA of Rs.12 crore on quarterly sales of Rs.49 crore in Quarter 1, June ‘25. The business vertical should continue to grow backed by new innovative products and specialty films sales. Pet care venture, Zigly: Zigly is all set for the next level of growth and should see higher momentum in FY’26. The business model is moving more towards services and house brands, which is a high margin business.
Some initiative from ESG
Recognizing need for sustainability and future preparedness, the company is taking several initiatives on sustainability which improved initiatives, like all plants are now partially using renewable power as the source of energy. In FY’25 company has used more than 50% of its power consumption from renewable sources, which we expect to further increase to about two third in one to two years period. Besides the environment, this also facilitates cost Cosmo First Limited August 14th ,2025 rationalization. Other initiatives include reduced power consumption through efficiency improvement, rainwater harvesting and many others. On that note, we conclude our opening remarks, and would be glad to discuss any questions, comments or suggestions that you may have. I would now like to ask the moderator to open the line for Q&A session. Thank you.
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