Cosmo Films posted a mixed set of second quarter earnings. The revenue growth were decent but margins took a hit. The profit after tax (PAT) was also impacted by a higher finance cost.
Discussing the numbers, Neeraj Jain, CFO of Cosmo Films said demand growth was not as per the expectations for the last 9-12 months and it is difficult to estimate when it will pick up. However, it is more likley of a temporary phenomenon, he said.
Have added new capacity on the bi-axially oriented polypropylene films (BOPP) side in February 2017 and have reached 90 percent capacity utilisation. on the new capacity in the quarter, he said , adding that for the company as a whole, utilisation has been more than 90 percent.
Post demonetisation and goods and services tax (GST), the demand growth has not yet come but it is likely to be a temporary phenomenon, said Jain.
Talking on higher finance costs, he said most of them are becauser of the new capacity addition.
For full interview, watch accompanying video...
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