Any current/future new fundraising through debt or equity?

The company currently operates with a total debt of close to Rs. 600 crores, with a debt-to-EBITDA ratio of around 2.1. Management does not expect any significant change or increase in debt levels in the current year. For the next year, with lower Capex planned, the company expects the debt to come down. There are no indications or announcements regarding any new fundraising through equity or additional debt in the near term. Management specifically mentioned "Nothing on the cards for this year" regarding any demerger or structural changes. Overall, the company plans to maintain or reduce debt

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

Capex of roughly Rs. 300 crores planned for FY25 and around Rs. 150 crores for FY26, including maintenance. Major investments include commissioning a new CPP line expected in Q3 FY25 and parts in Q4 FY25. A new BOPP line is expected to start commercial production by H1 FY26; both CPP and BOPP lines will be among the world’s largest, increasing production capacity by ~50%. Small Capex planned for specialty chemicals expansion by end of FY25 or FY26, but not sizable. Thermal film line relocated from Korea to India; commercial production expected from Q3 FY25. No plans for any demerger in the cur

Future growth expectations in sales/revenue/volumes?

The company expects improved sales of specialty films during FY25, with specialty volumes increasing progressively (69% in Q1 FY25). Domestic BOPP margins are expected to remain healthy throughout FY25. New business verticals like specialty chemicals are already generating decent EBITDA, with rigid packaging expected to earn EBITDA by FY25-end. Zigly (pet care vertical) is in growth phase; profitability is anticipated but may take a couple of years. Sun control films commercial production will begin Q4 FY25, with meaningful profitability expected from FY27. Polyester (BOPET) margins showed imp

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

Company expects improved sales of specialty films and healthier domestic BOPP margins during FY25. Specialty sales increased to 69% of total volume in Q1 FY25, up from 64% in FY24, indicating higher-margin product mix. Specialty chemicals vertical already generating decent EBITDA in mid-teens; rigid packaging expected to be EBITDA-positive by FY25-end. BOPET business made positive EBITDA in Q1; margins expected to improve as demand rises and utilization increases. Sun control window films commercial production starts Q4 FY25; meaningful profitability anticipated only from FY27. Zigly (pet care

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Cosmo First LtdQ2 FY24Industrial Products

Cosmo First Ltd Q2 FY24 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

Order

N/A

Capex

Yes

1 of 4 growth signals are positive — mixed outlook.

Full analysis

Revenue guidance

Category 3

→The company expects improved sales of specialty films during FY25, with specialty volumes increasing progressively (69% in Q1 FY25).
→Domestic BOPP margins are expected to remain healthy throughout FY25.
→New business verticals like specialty chemicals are already generating decent EBITDA, with rigid packaging expected to earn EBITDA by FY25-end.
→Zigly (pet care vertical) is in growth phase; profitability is anticipated but may take a couple of years.
→Sun control films commercial production will begin Q4 FY25, with meaningful profitability expected from FY27.
→Polyester (BOPET) margins showed improvement; profitability expected to grow as demand improves in coming quarters.
→Company targets roughly 5-10% volume growth next year from CPP new line and other capacity expansions.
→Export demand remains strong, contributing to growth alongside new domestic startups in FMCG-related flexible packaging segments.

Margin guidance

Category 3

→Company expects improved sales of specialty films and healthier domestic BOPP margins during FY25.
→Specialty sales increased to 69% of total volume in Q1 FY25, up from 64% in FY24, indicating higher-margin product mix.
→Specialty chemicals vertical already generating decent EBITDA in mid-teens; rigid packaging expected to be EBITDA-positive by FY25-end.
→BOPET business made positive EBITDA in Q1; margins expected to improve as demand rises and utilization increases.
→Sun control window films commercial production starts Q4 FY25; meaningful profitability anticipated only from FY27.
→Zigly (pet care) business remains in growth phase; profitability forecasted after a couple of years.
→Renewable power initiatives expected to contribute ~Rs. 25 crores annual bottom-line benefit from FY25.
→Capex of approx. Rs. 300 crore in FY25, Rs. 150 crore in FY26, aimed at capacity expansion and specialty products.
→Net debt expected to stabilize in FY25 and reduce in FY26, supporting financial health and earnings growth.

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Fundraise plans

→The company currently operates with a total debt of close to Rs. 600 crores, with a debt-to-EBITDA ratio of around 2.1.
→Management does not expect any significant change or increase in debt levels in the current year.
→For the next year, with lower Capex planned, the company expects the debt to come down.
→There are no indications or announcements regarding any new fundraising through equity or additional debt in the near term.
→Management specifically mentioned "Nothing on the cards for this year" regarding any demerger or structural changes.
→Overall, the company plans to maintain or reduce debt levels post FY25 despite ongoing and planned Capex.

Order book

The transcript does not explicitly mention any details regarding the current or expected order book or pending orders for Cosmo First Limited. The discussion focuses primarily on: - Capacity utilization and commercialization timelines (e.g., sun control films expected commercial production from Q4 FY25). - EBITDA and profitability outlooks for various verticals like specialty chemicals, BOPP, BOPET, and Zigly. - Capex plans and debt position. - Margin and spread improvements in BOPP and BOPET segments. - Growth outlook for specialty films and flexible packaging demand trends. No direct information on order book size or pending orders is disclosed in the provided transcript.

Capex plans

Yes

→Capex of roughly Rs. 300 crores planned for FY25 and around Rs. 150 crores for FY26, including maintenance.
→Major investments include commissioning a new CPP line expected in Q3 FY25 and parts in Q4 FY25.
→A new BOPP line is expected to start commercial production by H1 FY26; both CPP and BOPP lines will be among the world’s largest, increasing production capacity by ~50%.
→Small Capex planned for specialty chemicals expansion by end of FY25 or FY26, but not sizable.
→Thermal film line relocated from Korea to India; commercial production expected from Q3 FY25.
→No plans for any demerger in the current year.
→Net debt (~Rs. 600 crore) expected to remain stable this year and reduce next year despite Capex.

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