Cosmo Films found itself gaining in popularity after Q4 profits doubled over the previous corresponding period.

The results buoyed up the scrip of the packaging major, by 3.25% to Rs 66.80 by 10:20 IST. Volumes were decent at 9,267 shares on BSE by that time.

Cosmo Films said on Monday that Q4 ended 31 March 2003 net profit rose to Rs 10.51 crore from Rs 5.17 crore in the same period of the previous year. Net sales were at Rs 83.47 crore. For the year ended 31 March 2003, the company's net profit stood at Rs 39.98 crore on net sales of Rs 315.30 crore (Rs 3.15 billion).

On a consolidated basis, the company recorded a net profit of Rs 38.70 crore on net sales of Rs 310.99 crore (Rs 3.10 billion). The consolidated figures are of the merged entity - Cosmo Films and Gujarat Propack.

In September 2002, CFL effected the merger of GPL with itself. CFL saw the merger as a chance to enhance its total production capacity of BOPP film to 22,000 tonnes per annum, from 13,000 tonnes. CFL acquired 76.51% stake in GPL at Rs 29.25 per share. The swap ratio was at 1:2. ie 1 equity share of CFL for every 2 equity shares of GPL. GPL was, before the merger, the second largest player in the Indian biaxially-oriented polypropylene film industry, with an over 27% market share.

Meanwhile, the shareholders of Cosmo Films, at the extraordinary general meeting held yesterday, also approved an issue of bonus equity shares in the ratio of one new share for every share held in the company. Further, the board of directors has fixed 24 March 2003 as the record date for the purpose.

CFL had recently announced that it had received a $4 million line of credit from Rabo Bank to fund the expansion of the company's capacity by 10,000 MT to 46,000 MT. In addition, the company said that it received a loan of $2 million from Exim Bank. Most of the funds raised will go into the funding of the expansion project, though some part will go into retiring old high-cost debts.

Earlier, CFL had said that it was supplying plastic materials for packaging of consumer products, including food, to Unilever in Bangladesh.

CFL was incorporated in 1976 and was promoted by Ashok Jaipuria. It went public in 1980. The company has two plants at Chikalthana and Waluj, both in Aurangabad district of Maharashtra.

CFL is the largest maker of BOPP films in the country, which is widely used for packaging of products like snacks, biscuits and confectionery, cigarettes, blades, textiles, etc. The acceptance and use of BOPP film is on the rise not only because of its cost effectiveness in comparison with other packaging material, but also due to its moisture resistance, which increases the life of products by almost 2–3 times.

As on 31 December 2003, the promoters' holding in CFL was 49.53%, while that of the public and institutions was 24.84% and 8.52% respectively.