Thread by @TYMFinance

Cosmo Films conducted the concall today at 2:30 pm

Here are the Conference call highlights

" Expanding speciality area and increasing expertise in niche areas for growth."

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Outlook

- This Diversified company has delivered positive return during this period as well.

- They have kept a track on market to avail best results and taking steps cautiously to attain strong growth without hinderance.

- Their Speciality portfolio has delivered an annual growth of 18% for last 3 years.

- They have a target to achieve 80% of revenue from speciality by Fy 2023.

- Under it, the company currently has 6 patents and addition to it 6 are in pipeline.

- With complimentary growth in specialized BOPET line they have a target set to attain 20% plus growth in EBITDA.

- Along with this investment are been made in RnD for longer sustainability.

- Their Masterbatch plant has 1st line with capitve consumption and 25% outside sales.

- They launched FMCG product " Fabritizer " to protect against viruses and bacteria on cloths.

- They are focused to produce Masterbatch for captive use and niche speciality for outside sale.

- This FMCG product is expected to gained very good response with good amount of marketing and branding done for it.

- This products is set by company to be available in each place online and offline mode.

- But the big sales can come by jan 22 onwards.

- Company recently developed eco-friendly products as well.

- Along with this company is under commissioning of adhesive business for packaging, lamination and labels.

- On Petcare, it is an untapped market for them with huge growth prospects.

- They are creating first digital omnichannel for products and services.

- The company expects to gain much out of this low penetration markets.

- And in medium term it is expected to be demerger and set to be a separate different company.

Financials

- Strong EBITDA is been delivered since last 9 quarters in a row.

- High speciality sales, higher margins and ease in increasing cost transfer to clients has helped a lot.

- A strong push from the uptick performance of their subsidiaries has improved business growth

- The reduction in Tax rate has also increased their PAT levels.

- In terms of debt management, they have been able to bring their net debt to equity at 0.5 times

- Company is dealing in both B2B and B2C, in which they have smooth moving in B2B space.

- Company has an investment of 130cr in perpetual bonds, they have new area to invest in mind. So, the money invested in this bonds will be used it as per proper valuations.

- This bonds were invested in good times and have good YTM levels as wells.

- Numbers will be shared when they are redeemed.

- In terms of employees cost, they are expected to increase due to new hirings for new markets.

- The company doesn't perform task until they have proper force for them.

Capex

- Company is planning to incure 330cr of Capex in FY22.

- Along with this new products are been launched to cater people's demand and capture most of the new market.

- And for Petcare business they expect to have low Capex of 15cr by FY22.

- They are set to enter a BOPET project of 400cr with 3 to 4 years payback.

- The construction has began and is expected to be operational bit by Q1 next year.

- This is a multi product line, the revenue is expected around 300 to 350 cr.,

- Company in last 12 years combine has incurred RnD investment of 80cr approx.

- This investment has helped in cutting avoidable costs. And as they are some done with big brands company gets advantage of using premium services.

- The innitiative is much larger then numbers.

- Company has set various specific areas to ease of recycling and incure target cost of 40cr to attain sustainability innitiatives.

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