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Wednesday, Apr 21, 2004

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Cosmo Films net dips 21 pc on margin squeeze

Our Bureau

New Delhi , April 20

COSMO Films Ltd, a leading player in bi-axially oriented polypropylene films (BOPP) flexible packaging industry, has been hit by declining margins and has witnessed a 21.18 per cent decline in net profits for the financial year 2004.

Net profit stood at Rs 31.51 crore for the financial year ended March 31 against Rs 39.98 crore recorded during the previous year.

While the total revenues of Cosmo Films stood at Rs 321.87 crore for the full year, higher than last year's Rs 320.50 crore, the company's fourth quarter results have not been very encouraging.

The total revenues for the quarter ending March 31 stood at Rs 75.55 crore compared to Rs 86.01 crore during the corresponding period last year.

Its net profits too fell from Rs 10.51 crore recorded during the last quarter of 2003 to Rs 8.01 crore during the corresponding period this year.

Mr S.K. Mittal, Executive Director and CEO of the company told Business Line, "Our industry has been impacted by several factors. There has been pressure on the selling price and the rupee has appreciated. All these have had an impact on the profits. But these have been arrested to some extent by our cost saving measures."

The company has commissioned its Line VI of the BOPP expansion project, its captive power plant and extrusion coating project within its estimated cost and time targets.

It expects substantial benefits out of these projects accruing to the company in coming years.

The company also saw its exports grow by 25 per cent to Rs 106.53 crore against Rs 85.24 crore during the previous year.

The board of directors has recommended a 45 per cent dividend or Rs 4.50 per equity share for the year.

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