Cosmo First Limited · NSE:COSMOFIRST
Cosmo First — Q3 FY2024 Earnings Presentation
35 slides from Cosmo First's earnings presentation, Feb 13, 2024
Slide 1: Cover letter to stock exchanges
CFL/SE/2023-24/FEB/06 February 13, 2024 The Manager (Listing) The Manager (Listing) BSE Limited National Stock Exchange of India Ltd. Phiroze Jeejeebhoy Towers, Exchange Plaza, Dalal Street, Plot no. C/1, G Block, Mumbai-400 001 Bandra – Kurla Complex Scrip Code: 508814 Mumbai-400 051 Security ID: “
Slide 2: A Perspective
A Perspective February 2024 Speciality Films, Speciality Chemicals, Rigid Packaging & Petcare Flexible Packaging I Lamination I Labeling I Synthetic Paper I Speciality Chemicals I Plastech I Sunshield I D2C Petcare (Zigly)
Slide 3: Discussion Summary
Discussion Summary Cosmo First – An Overview December 2023 Quarter Performance Snapshot Strategic Perspective Our Businesses: Films Business Rigid Plastic (Plastech) Specialty Chemicals D2C Petcare (Zigly) Financial Overview ESG Focus Disclaimer Certain statements in this presentatio
Slide 4: Company Overview
Company Overview Strong History & Leading Position Global Leader in some Specialty Segments Unique Proposition Established in 1981, Cosmo Films World’s largest producer of thermal Uniquely positioned with good mix of Ltd.is the pioneer of BOPP Films lamination films. specialty/semi specialty (
Slide 5: Company Overview – Businesses
Company Overview – Businesses Speciality films focused business with target to sell 80% BOPP based volume of speciality films by FY25 (9MFY24 Speciality 64%) Verticals: Masterbatch (From FY21) Coating Chemicals (From FY22) Adhesive (From FY24) End-to-end rigid packaging solutions division Zigly i
Slide 6: Company Overview - Key Milestones
Company Overview - Key Milestones ►Established in 1981, Cosmo Films Ltd.is ►Petcare ►2012: 2nd ►2016: CPP line-1 the pioneer of BOPP Films Industry in ►Speciality Chemicals India; coating line ►2017: 10th BOPP ►Today leading Specialty film player ►2013: 9th line 2022 ►2010: 2nd BOPP line globally an
Slide 7: Speciality & Semi Speciality Growth and Margins
Speciality & Semi Speciality Growth and Margins Expanding Speciality & Semi-Speciality films portfolio (high margin category) (9M’FY24 64% volume; 13% CAGR over last 5 years). Target 80%+ volume from Speciality & Semi Speciality segment by 2025. 120% 80 70 100% 60 80% 38% 43% 52% 50 64% 62% 64%
Slide 8: Performance Snapshot December 2023 Quarter
Performance Snapshot INR Cr Unaudited Q3 FY 23-24 Unaudited Q2 FY 23-24 Unaudited Q3 FY 22-23 December Particulars Standalone Consolidated Standalone Consolidated Standalone Consolidated 2023 Quarter Net Sales EBITDA 568 46 625 56 617 71 664 72 625 75 730 86 EBITDA % 8% 9% 11.5% 10.9% 12% 12% PBT 2
Slide 9: Performance Snapshot – Management Commentary Continues
Performance Snapshot – Management Commentary Continues … The Company recently launched metallized capacitor film for electronic industry and Rigid Packaging for FMCG industry. Market response has been very good, and the Company expects to hit full capacity utilization in the next 2-3 quarters and
Slide 10: Strategic Perspective – Why Cosmo First?
Why Cosmo First ? Company with diversified businesses with target 20% CAGR topline growth in next 3 years coupled with commensurate return growth Strategic Potential high Growth Engines include Speciality Films, Speciality Chemicals, digital first, D2C Petcare business and rigid plastics. Perspe
Slide 11: Strategic Perspective – Why Cosmo First?
Why Cosmo First ? Speciality Chemicals: Masterbatch plant (1st line with 75% captive consumption & 25% outside sale). Coating Chemicals – scale up in coming years. Strategic Complimentary Adhesive business for Packaging, Lamination and Labels – FY24. Target 25%+ ROCE business. Perspective
Slide 12: Key Capex to Fuel Growth
Key Capex to Fuel Growth Films Business: Estimated Annual Estimated S.No. Capex Project Capex Capacity Commercial (INR Crs) (MT) Production by BOPP Line 1 350 67,000 H1’FY 2026 (World’s Largest Line) CPP Films Line 2 140 25,000 H1’FY 2025 (World’s Largest Line) Total 490* * Out of above mentioned ca
Slide 13: Business Overview “FILMS Business”
Business Overview “FILMS Business”
Slide 14: Manufacturing Footprints & Offices
Manufacturing Footprints & Offices” Upcoming capacities: CPP line (25000 TPA – H1’FY25) - Waluj, Aurangabad BOPP line (67000 TPA – H1’FY26) – Waluj, Aurangabad
Slide 15: Films Business-India Industry Dynamics & Capex Strategy
Films Business-India Industry Dynamics & Capex Strategy Data Source: AMI/PCI/Other Independent Research and Industry Sources
Slide 16: Films Business - Speciality Films Product Portfolio
Films Business - Speciality Films Product Portfolio PACKAGING FILMS LAMINATION FILMS LABEL FILMS INDUSTRIAL FILMS o Print & Pouching Films o Thermal Lamination & Wet o Pressure Sensitive Label o Synthetic paper o Tape & Textile Films Lamination stock films o Cable Overwrap o Barrier Films o Special
Slide 17: Speciality Films Focus
Speciality Films Focus Grow Speciality portfolio by volume from Key Speciality Products: 64% in 9M, FY24 to 80%+ by 2025 Globally among top four players in BOPP Speciality films Speciality Label Films – Second largest player in the World Each 1% shift in Speciality adds EBITDA Thermal La
Slide 18: Focus on R&D and innovation to fuel next phase of growth
Focus on R&D and innovation to fuel next phase of growth Infrastructure Innovative Product Launches High Tear Resistant Synthetic Paper (CSP): Designed for high tear resistant tag applications. Also offers moisture, oil and chemical resistance just like standard synthetic paper. R&D labs with mo
Slide 19: Films Business – Customers/Brands we Serve
Films Business – Customers/Brands we Serve Company stands as a trusted partner to a prestigious portfolio of large blue chip companies and renowned brands. Extensive reach and strong relationships within the industry have positioned us as a key supplier of high-quality materials. This underscores
Slide 20: Rigid Plastic “Plastech” Business Overview
Rigid Plastic “Plastech” Domestic Industry size of INR 10,000 Cr and growing @ 10%+ Business End-to-end rigid packaging solutions. Overview Specializes in creating customized packaging solutions for a variety of fast- moving consumer goods products. “Rigid Plastics” State-of-the-art machiner
Slide 21: Business Overview “Speciality Chemicals Business”
Business Overview Masterbatches Adhesives India Industry size is 500k mt. Adhesive is planned to kick start Industry growing by 11% pa. “Speciality Masterbatch is a concentrated from H2’FY23 Global Industry USD 52 billion Chemicals Business” mixture of pigments and additives used for impar
Slide 22: Business Overview D2C Petcare
Business Overview The Pet care market in India is booming with: • ~25% Projected Annual Growth • ~32MM pets D2C PETCARE • ~1MM annual adoptions UNDER BRAND Indian Petcare Market “ZIGLY” Pet penetration in developed markets like US & UK is more then 68% and growing. 12000 Rs 12500 Cr 10000 8000 6000
Slide 23: Zigly - Business Model
Key Tractions Zigly - Business Model 13 Cr GMV (FY’23) 4 cr Retail outlets Own Service Other Current Monthly GMV E-commerce Marketplace Marketplace 38K + website and Customers served with 6k+ Zigly Pro members App One Stop solution retail Private label outlets offering available on 5900+ Acting as a
Slide 24: Plan for Petcare Vertical “Zigly”
Plan for Petcare Vertical “Zigly” India Petcare industry INR 5k crores (25% expected growth rate) Smaller families, rising income levels and limited social lives (especially post Covid-19) No large scale organized players in India offering end to end comprehensive solution Average spending o
Slide 25: Financial Overview & ESG
Cosmo First Financial Overview & ESG
Slide 26: FY22-23 - Performance Snapshot
FY22-23 - Performance Snapshot INR Crores Audited FY 20-21 Audited FY 21-22 Audited FY 22-23 Particulars Standalone Consolidated Standalone Consolidated Standalone Consolidated Net Sales 2,083 2,285 2,824 3,038 2,742 3,063 EBIDTA 398 430 526 620 396 434 EBIDTA % 19% 19% 19% 20% 14% 14% PBT 305 329 4
Slide 27: Key Financial Snapshot
Key Financial Snapshot Net debt/EBITDA 1.7 times and net debt to equity at 0.4 times (Sept’2023) ROE % ROCE % 29% 39% 727 Net Debt (INR Cr) 800 584 22% 30% 502 14% 16% 16% 20% 600 438 434 9% 9% 400 303 200 Mar-19Mar-20Mar-21Mar-22Mar-23 Mar-19 Mar-20 Mar-21 Mar-22 Mar-23 - Mar-19 Mar-20 Mar-21 Mar-2
Slide 28: Shareholding Pattern – December 2023
Shareholding Pattern – December 2023 1.13 Top Non-Promoter Shareholding – 31st December 2023 Promoter and Promoter Group 1 Shivani Tejas Trivedi 0.97% Institutional Acadian Emerging Markets Small Capp 49.62 45.04 2 0.69% Equity Fund LLC Non Institutional 3 Tejas Balchandra Trivedi 0.69% Cosmo Films
Slide 29: ESG & Sustainability Initiatives - CareEdge “Good” ESG Rating
ESG & Sustainability Initiatives - CareEdge “Good” ESG Rating Product Practices Manufacturing Practices Offering mono-material for ease of recycling. Recycling of manufacturing waste for further film Production (about Designed heat resistant BOPP films replacing 95%) BOPET; giving push to creation
Slide 30: Board of Directors
Board of Directors Mr. H N Sinor Mr. Ashok Jaipuria Independent Director Chairman & Managing Director Over 4 decades experience in public as well as private sector banks A first generation entrepreneur with over forty years like UBI, Central Bank of India and ICICI Bank. of experience in the corpora
Slide 31: Leadership Team
Leadership Team Mr. Kulbhushan Malik Business Head- Cosmo Films Over 24 years of experience in the areas of Business & Strategy Management, Sales and Financial management. Mr. Pankaj Poddar Group Chief Executive Officer Over 27 years of experience in Mr. Sanjay Chincholikar finance, advisory and var
Slide 32: ESG Snapshot
ESG Snapshot Environmental Social Governance
Slide 33: CSR Milestones
CSR Milestones Cosmo First 4 one ee eee Ahend Mhvous Education Sanitation Environment & Plantation 43 40 ine 200 4 55000 148 finn ‘Schools Enrolled Scholarship Toilet Water Tanks Tree Plantation Total green cover 24 46 1 T1 scroois 15 92% Computer Labs Computer Awards Handwash Stands Rain Water Farm
Slide 34: Awards and Accolades
Awards and Accolades FY 2023-24 • Grabbed the IFCA Star Awards 2023 in the innovative category for “Super Barrier BOPP Film (18HST-2 SB) MO)” and ‘High Puncture Resistant BOPP Film” FY 2022-23 • Featured as one of the Top 10 Companies from India in Forbes Asia Best under A Billion 2022 list • Ranked
Slide 35: Thank You
Thank You For more information, please contact: Cosmo First Ltd. Mr. Neeraj Jain Group Chief Financial Officer Email ID: neeraj.jain@cosmofirst.com; Mr. Sachin Goel Investor Relations Email ID: sachin.goel@cosmofirst.com