Any current/future new fundraising through debt or equity?

No definite plans for private equity infusion have been ascertained at this stage for expansion (Page 6). The company does not indicate any immediate plans for new equity fundraising. Current net debt stands at around Rs. 550-561 crores, with expected minor increase of Rs. 20-50 crores by end of FY25 due to ongoing CAPEX (Page 7). Total planned CAPEX is about Rs. 300-350 crores in FY25, largely towards BOPP production lines, with no further CAPEX planned after that (Page 7). Debt repayment of Rs. 180 crores is scheduled for next year (FY25), and the company expects no concern in repaying this

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

Planned CAPEX of Rs. 300-350 crore in FY25, largely focused on BOPP production line expansion. Total CAPEX planned close to Rs. 1000 crore, with Rs. 650-700 crore already spent; the remaining Rs. 300-350 crore will complete the program. New BOPP and CPP lines expected to generate approximately Rs. 1000 crore additional revenue. Additional Rs. 200 crore revenue anticipated from new verticals like capacitor metallizer, rigid packaging, and speciality chemicals. Zigly (pet care business) to invest Rs. 30-35 crore in FY25, with business scaling planned. Pet care business being organized as a separ

Future growth expectations in sales/revenue/volumes?

Proposed BOPP line and CPP line commercialization expected to generate an additional ~Rs. 1000 crore in revenue. New verticals like capacitor metallizer, rigid packaging, and specialty chemicals may add close to Rs. 200 crore more. Specialty film focus planned to increase to 80% of sales, aiming for high-margin, high-end specialty products. Rigid packaging capacity expected to reach ~80% utilization by second half of FY25, targeting Rs. 125 crore in sales at full capacity. Zigly (pet care business) plans to increase stores from 23 to 40 in the current year, with a GMV expected to exceed Rs. 10

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

Q1 FY25 BOPP margins expected to remain steady, in line with March 2024 levels. Focus on cost rationalization in FY25, including power cost savings (~Rs. 25 crore annual impact) and thermal line shift from Korea to India. Specialty film sales to increase, with high-margin speciality and high shrink films targeted. New verticals like Specialty Chemicals, capacitor metallizer, and rigid packaging projected to generate decent EBITDA in FY25; Specialty Chemicals expected to achieve double-digit EBITDA and >20% ROCE. Zigly (pet care business) expected to take time to become profitable; FY25 investm

Current/ Expected Orderbook/ Pending Orders?

Management did not explicitly mention the current orderbook or pending orders size in the call. However, they indicated that orders from a high-margin Specialty export customer, which were previously uneven, have now been received starting Q1 FY25. The company highlighted focus on ramping up Speciality films, including new launches like sun control film. Capacity utilizations, especially in rigid packaging, are increasing month-on-month, with expectations to reach 80% utilization in H2 FY25. Expansion plans (BOPP line and CPP line) anticipate generating additional revenues (~Rs. 1000 crore plu

Cosmo First LtdQ1 FY25

Cosmo First Ltd Q1 FY25 Earnings Call Analysis

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

Price: ₹913P/E: 14.9Market Cap: ₹2.4K Cr

Management growth scorecard

Revenue

Category 3

Margin

Category 3

Fundraise

N/A

Order

N/A

Capex

Yes

1 of 3 growth signals are positive — mixed outlook.

Full analysis

Revenue guidance

Category 3

→Proposed BOPP line and CPP line commercialization expected to generate an additional ~Rs. 1000 crore in revenue.
→New verticals like capacitor metallizer, rigid packaging, and specialty chemicals may add close to Rs. 200 crore more.
→Specialty film focus planned to increase to 80% of sales, aiming for high-margin, high-end specialty products.
→Rigid packaging capacity expected to reach ~80% utilization by second half of FY25, targeting Rs. 125 crore in sales at full capacity.
→Zigly (pet care business) plans to increase stores from 23 to 40 in the current year, with a GMV expected to exceed Rs. 100 crore two years down the line.
→Specialty chemicals and capacitor metallizer along with rigid packaging expected to contribute decent EBITDA in FY25.
→Near-term challenges anticipated in BOPET film sales.
→Higher cost rationalization efforts ongoing to boost margins and profitability.

Margin guidance

Category 3

→Q1 FY25 BOPP margins expected to remain steady, in line with March 2024 levels.
→Focus on cost rationalization in FY25, including power cost savings (~Rs. 25 crore annual impact) and thermal line shift from Korea to India.
→Specialty film sales to increase, with high-margin speciality and high shrink films targeted.
→New verticals like Specialty Chemicals, capacitor metallizer, and rigid packaging projected to generate decent EBITDA in FY25; Specialty Chemicals expected to achieve double-digit EBITDA and >20% ROCE.
→Zigly (pet care business) expected to take time to become profitable; FY25 investment of Rs. 30-35 crore with EBITDA losses similar to FY24’s Rs. 24 crore.
→Post FY25 capex, net debt expected to stabilize (~Rs. 550-600 crore) with reduction anticipated from FY26 onwards.
→Overall, growth driven by high-margin specialty products, cost rationalization, and new business verticals, with improved profitability prospects over medium term.

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Fundraise plans

→No definite plans for private equity infusion have been ascertained at this stage for expansion (Page 6).
→The company does not indicate any immediate plans for new equity fundraising.
→Current net debt stands at around Rs. 550-561 crores, with expected minor increase of Rs. 20-50 crores by end of FY25 due to ongoing CAPEX (Page 7).
→Total planned CAPEX is about Rs. 300-350 crores in FY25, largely towards BOPP production lines, with no further CAPEX planned after that (Page 7).
→Debt repayment of Rs. 180 crores is scheduled for next year (FY25), and the company expects no concern in repaying this (Page 11).
→Post completion of CAPEX, the balance sheet is expected to remain very strong (Page 11).
→Overall, no explicit announcement of fresh fundraising through debt or equity in the near future.

Order book

→Management did not explicitly mention the current orderbook or pending orders size in the call.
→However, they indicated that orders from a high-margin Specialty export customer, which were previously uneven, have now been received starting Q1 FY25.
→The company highlighted focus on ramping up Speciality films, including new launches like sun control film.
→Capacity utilizations, especially in rigid packaging, are increasing month-on-month, with expectations to reach 80% utilization in H2 FY25.
→Expansion plans (BOPP line and CPP line) anticipate generating additional revenues (~Rs. 1000 crore plus Rs. 200 crore from new verticals).
→The company is also commercializing R&D developed dyed film technology, which reflects a pipeline of new product orders.
→Overall, management focused more on capacity utilization and commercialization than providing specific pending orderbook numbers.

Capex plans

Yes

→Planned CAPEX of Rs. 300-350 crore in FY25, largely focused on BOPP production line expansion.
→Total CAPEX planned close to Rs. 1000 crore, with Rs. 650-700 crore already spent; the remaining Rs. 300-350 crore will complete the program.
→New BOPP and CPP lines expected to generate approximately Rs. 1000 crore additional revenue.
→Additional Rs. 200 crore revenue anticipated from new verticals like capacitor metallizer, rigid packaging, and speciality chemicals.
→Zigly (pet care business) to invest Rs. 30-35 crore in FY25, with business scaling planned.
→Pet care business being organized as a separate subsidiary; further investment or external funding is unconfirmed.
→Cost rationalization efforts include shifting thermal line from Korea to India and waste aging rationalization.

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