Any current/future capex/capital investment/strategic investment?

Total CAPEX for specialized BOPET line is Rs. 450 Cr; Rs. 100 Cr of this is for value-added section. Capacity of specialized BOPET line is close to 30,000 tonnes; most came online last year, balance with window film line this year. Incremental CAPEX over next two years is Rs. 400-450 Cr, mostly funded from internal accruals; debt may increase from Rs. 450 Cr currently. Recent Rs. 55 Cr CAPEX allocated for Sun Shield and Rs. 32 Cr for second capacitor; window film CAPEX also ongoing. BOPP and CPP lines under construction will increase production capacity by 45-50% by March 2025; expecte

Any current/future new fundraising through debt or equity?

As of June 2023, Cosmo First Ltd's net debt stood at approximately Rs. 450 Cr. The company plans incremental CAPEX of around Rs. 400-Rs. 450 Cr over the next two years. A large part of this CAPEX is expected to be funded from internal accruals. Overall debt may increase to some extent, depending on profitability over the coming years. No explicit mention of new equity fundraising was made during the call. Promoters have recently increased their stake, indicating confidence, but this pertains to equity holding, not fresh equity issuance. Management's focus appears to be on leveraging internal f

Future growth expectations in sales/revenue/volumes?

Specialty films portfolio expected to continue delivering superior returns despite near-term challenges in BOPP and BOPET segments. Specialty chemicals division aims to double its revenue in the coming years. Zigly pet care business is rapidly growing with month-on-month increasing sales, targeting profitability within two years (2025-2026). BOPP volumes are already growing due to new line additions; revenue growth expected as raw material prices stabilize and rise. Specialty sales, after a recent slowdown, are showing signs of recovery and expected to grow again in the near term. New capacity

Future growth expectations in earnings/operating earnings/profits/EPS?

Specialty films portfolio expected to deliver superior returns despite near-term challenges in BOPP and BOPET segments. Specialty chemicals division projected to double its revenue over the coming years. Zigly (pet care business) showing rapid revenue growth; expected to become profitable in 2 years (2025-2026). BOPET segment currently under margin pressure due to oversupply; EBITDA breakeven anticipated within 1-1.5 years. Cost rationalization initiatives underway, targeting Rs. 50-60 Cr annualized savings, largely from renewable power and raw material savings, phasing benefits starting Q2 FY

Current/ Expected Orderbook/ Pending Orders?

The transcript provided does not specifically mention details about the current or expected order book or pending orders for Cosmo First Ltd. However, management indicated that specialty film sales showed improvement with better specialty sales and an increase in specialty volume to about 65% of total BOPP volume. They highlighted ongoing growth in Zigly (pet care segment) with monthly sales increasing, though this segment is currently EBITDA negative. There is a focus on continued capacity expansion projects for BOPP and CPP lines, expected to increase production capacity by 45%-50% by March

IN US

Sale is live|00:00:00left today

Cosmo First LtdQ2 FY23Industrial Products

Cosmo First Ltd Q2 FY23 Earnings Call Analysis

Revenue, margin, capex, fundraise and order book outlook from management commentary.

Price: ₹822P/E: 13.7Market Cap: ₹2.0K CrSector: Industrial Products

Management growth scorecard

Revenue

Category 3

Margin

Category 3

Fundraise

Yes

Order

N/A

Capex

Yes

2 of 4 growth signals are positive.

Full analysis

Revenue guidance

Category 3

→Specialty films portfolio expected to continue delivering superior returns despite near-term challenges in BOPP and BOPET segments.
→Specialty chemicals division aims to double its revenue in the coming years.
→Zigly pet care business is rapidly growing with month-on-month increasing sales, targeting profitability within two years (2025-2026).
→BOPP volumes are already growing due to new line additions; revenue growth expected as raw material prices stabilize and rise.
→Specialty sales, after a recent slowdown, are showing signs of recovery and expected to grow again in the near term.
→New capacity expansions (e.g., specialty polyester films like shrink label and sun shield) will further strengthen margins and revenue.
→Inventory losses due to raw material price fluctuations are expected to stabilize, possibly aiding revenue growth.
→Overall, the company anticipates volume and revenue growth with improved margins over the next few quarters and years.

Margin guidance

Category 3

→Specialty films portfolio expected to deliver superior returns despite near-term challenges in BOPP and BOPET segments.
→Specialty chemicals division projected to double its revenue over the coming years.
→Zigly (pet care business) showing rapid revenue growth; expected to become profitable in 2 years (2025-2026).
→BOPET segment currently under margin pressure due to oversupply; EBITDA breakeven anticipated within 1-1.5 years.
→Cost rationalization initiatives underway, targeting Rs. 50-60 Cr annualized savings, largely from renewable power and raw material savings, phasing benefits starting Q2 FY24.
→New capacity additions (BOPP and CPP lines) to increase production by 45-50% by March 2025, supporting growth and improving margins.
→Promoters optimistic about unlocking significant value in next 4-5 years, reflected in recent promoter stake increase.
→Overall, positive outlook for gradual margin recovery and higher volumes, with focus on innovative specialty products and expansion driving future earnings growth.

3 more insights locked — sign up free to unlock

Fundraise plans

Yes

→As of June 2023, Cosmo First Ltd's net debt stood at approximately Rs. 450 Cr.
→The company plans incremental CAPEX of around Rs. 400-Rs. 450 Cr over the next two years.
→A large part of this CAPEX is expected to be funded from internal accruals.
→Overall debt may increase to some extent, depending on profitability over the coming years.
→No explicit mention of new equity fundraising was made during the call.
→Promoters have recently increased their stake, indicating confidence, but this pertains to equity holding, not fresh equity issuance.
→Management's focus appears to be on leveraging internal funds and possibly some debt increase, with no formal announcement of new fundraising at this stage.

Order book

→The transcript provided does not specifically mention details about the current or expected order book or pending orders for Cosmo First Ltd.
→However, management indicated that specialty film sales showed improvement with better specialty sales and an increase in specialty volume to about 65% of total BOPP volume.
→They highlighted ongoing growth in Zigly (pet care segment) with monthly sales increasing, though this segment is currently EBITDA negative.
→There is a focus on continued capacity expansion projects for BOPP and CPP lines, expected to increase production capacity by 45%-50% by March 2025, indicating positive order inflows or expected demand.
→The company expects demand supply balance in BOPP to improve in coming quarters, signaling improving order traction.
→Specialty chemicals division is in growth mode with expected doubling of revenues in future years.
→Overall, the outlook suggests a gradual ramp-up in orders with focus on specialty films and new business lines, but exact order book details were not disclosed.

Capex plans

Yes

→Total CAPEX for specialized BOPET line is Rs. 450 Cr; Rs. 100 Cr of this is for value-added section.
→Capacity of specialized BOPET line is close to 30,000 tonnes; most came online last year, balance with window film line this year.
→Incremental CAPEX over next two years is Rs. 400-450 Cr, mostly funded from internal accruals; debt may increase from Rs. 450 Cr currently.
→Recent Rs. 55 Cr CAPEX allocated for Sun Shield and Rs. 32 Cr for second capacitor; window film CAPEX also ongoing.
→BOPP and CPP lines under construction will increase production capacity by 45-50% by March 2025; expected 3-5% cost rationalization.
→Specialty chemicals division investing in R&D and innovation; Adhesive product commercialization expected within 3 months.
→Ongoing cost specialization and R&D projects in films business to sustain competitive edge.

How does Cosmo First Ltd rank vs peers in Industrial Products?

Pro feature

1Cosmo First Ltd

Rev 3Mar 3

See full Industrial Products sector rankings

Want more stocks like Cosmo First Ltd?

Build an AI portfolio filtered by sector, market cap, and growth rank. Takes 2 minutes.

Build my portfolio