Cosmo Films - Diffentiated player in commodity business

(MeetSugat) #62

Thank you, I wasn’t aware of it.

(JKS) #64

Results came post market on Friday. Looks decent, at first glance (thanks to other income!)

(Mridul) #65

Hi Jiten,

What do you make out of the H1 performance? Margins have deteriorated to 7% from 11% last year. Operational cash flows have dried up (was below 30 cr in Fy17), and working capital requirements are increasing with rising receivables and inventory. Payables have reduced sharply in H1. Debt has increased by 250 odd cr due to expansion and higher WC requirements, rising crude will further pressure margins and Working capital.

Topline has risen. But, they are now operating at 95% utilization. Moreover, 50% of this revenue they claim is coming from specialty segment. Do you think specialty is soon becoming commodity?

(Jiten Parmar) #66

Yes. I was expecting these kind of results. I don’t think they are working at 95% capacity. Cosmo remains a 2-3 years story.

In that sense, I have added more in Uflex, as there is much more value addition there (it’s a actually a packaging company).

(sachit) #67

Hi @jitenp small question on Uflex. Doesn’t the fact that they have high receivables, especially those greater than 6 months disconcerting for you (especially compared to Cosmo)?


(sachit) #70

From where can we track BOPP BOPET prices?

(axiskumar) #71

Please let me know any one has update on latest quartely results

(Soni jose) #72

Many companies in this segment having the issue of deteriorating OPM, which indicates, most probably, excess supply.
Increasing volumes sales indicates the demand …
It may takes a couple of quarters for the suppliers to pass the cost of expenses to customers…

(ayush09) #73

Hey I have the same query. Also wanted to know where can you track poplypropylene prices ?