In an interview to CNBC-TV18, Neeraj Jain, CFO of Cosmo Films discussed the company's Q2 performance.
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...Get access to India's fastest growing financial subscriptions service Moneycontrol Pro for as little as Rs 599 for first year. Use the code "GETPRO". Moneycontrol Pro offers you all the information you need for wealth creation including actionable investment ideas, independent research and insights & analysis For more information, check out the Moneycontrol website or mobile app.