The Hindu Business Line : Cosmo Films to pay 50% dividend

New Delhi, April 25 Cosmo Films on Thursday declared 50 per cent dividend for the financial year 2007-08. The company reported a net profit of Rs 44.50 crore, up 79 per cent compared with Rs 24.82 crore in 2006-07.

The company’s turnover for the year stood at Rs 591.3 against Rs 539.9 crore last year. EPS for the year went up to Rs 22.73 against Rs 13.28 in 2006-07. The Chief Strategy Officer, Mr Upal Roy, said that the company had been able to increase its margins by around 13 per cent during the year even as the basic raw material costs had increased by around 20 per cent.

Expansion plans

The company also announced phased expansion plans for the next two years.

The company plans to set up two new production lines at its Baroda plant. Involving an investment of around Rs 120 crore, the first line is expected to be operational by March 2009 and the second one in another seven to eight months, he said. The new production lines will increase capacity of biaxially oriented polypropelene (BOPP) films from the current 56,000 tonnes to 1,36,000 tonnes and value-added products from 24,000 tonnes to 33,500 tonnes.

The company’s 60 per cent revenues are from exports. It has set up a wholly owned subsidiary in the US during the year in order to increase exports further. Though export volumes will go up sharply the percentage of exports and domestic sales will be the same because the Indian market is growing at 20 per cent, he said.

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