Galaxy Surfactants Limited announced its unaudited financial results for the Quarter and Nine months ended December 31st, 2019

Galaxy Surfactants Limited 9MFY20 Consolidated Performance:

·         Total volume grew by 5.6% for 9MFY20, on YoY basis

·         Total Revenue (including other income) stood at Rs. 1,945.6 Cr, a YoY degrowth of 6.5% on account of lower fatty alcohol prices which declined by 6.7% for the quarter and 16.4% for 9MFY20.

·         EBITDA stood at Rs. 272.2 Cr, YoY growth of 5.0%

·         PAT stood at Rs. 167.6 Cr, YoY growth of 25.2% on the back of deferred tax gain and savings on account of reduction in corporate tax rate

MUMBAI, 04th February 2020 (GNI): Galaxy Surfactants Limited, a leading manufacturer of performance surfactants and specialty care products with over 200 product grades used in Home and Personal Care industry, has announced its unaudited financial results for the Quarter and Nine months ended December 31st, 2019.

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Commenting on the performance Mr. U. Shekhar, Managing Director, Galaxy Surfactants Limited said “Q-3 marked a mixed quarter for us. While on one hand we had the Indian market making a comeback registering a healthy 4.8% volume growth, the ROW Market due to the seasonal holidays in the developed markets saw a decline of 15.1%. This we believe is a one off and we do see the momentum coming back in the ensuing quarters.  Egypt after registering a healthy growth of 29.8% in Q-2 FY 20, saw yet another quarter of good performance. AMET registered a healthy 14.2% growth for Q-3 FY 20, primarily driven by the 34.1% growth logged in by the Egypt Market.

The Performance Surfactants segment registered a healthy volume growth of 10.2% YoY driven by the AMET market. Specialty Care Products segment was impacted by the seasonality in the ROW markets during the quarter. We expect this segment to revert to growth in the coming quarter on the back of the strong acceptance and reach of our Specialty Care products portfolio. 

Revenue saw a decline primarily due to the declining Fatty Alcohol prices, which is the major raw material for our performance surfactants. The same fell from an average rate of 1,273 USD/MT (Q3FY19) to 1,188 USD/MT in the current quarter (decline of 6.7%).

Overall while this quarter has been subdued, the fact that we have registered volume growth across all regions despite the headwinds makes us optimistic. The inherent strength of our business model has ensured we grow on all counts – Volumes across all regions and segments, EBITDA and PBT, despite higher depreciation and incremental costs on account of operationalization of our new plant.   

Given the emerging global headwinds due to the Coronavirus which can have major repercussions not only on the global economy but also impact global consumption, we remain cautiously optimistic”

Performance Highlights:

Galaxy Surfactants Limited (Consolidated Results)

Particulars (Rs. Cr)

9MFY20

9MFY19

YoY%

Total Revenue*

1,945.6

2,082.0

-6.5%

EBITDA*

272.2

259.3

5.0%

PAT

167.6

133.9

25.2%

*Includes other income

Galaxy Surfactants Limited (Volume Break up): 9MFY20

Particulars

YoY Growth % (9MFY20 vs 9MFY19)

Sales Volume

5.6%

ROW

6.8%

India

0.7%

AMET

9.5%

·         Total volumes stood at 1,66,107 MT for 9MFY20 as against 1,57,261 MT in 9MFY19, up by 5.6% YoY

o   Volume growth has been driven by all three MNC, Regional and Local players

o   ROW markets grew at 6.8% driven by Specialty Care Products

o   Subdued demand led to a 0.7% growth in the India Market

o   AMET market grew by 9.5% due to recovery in the Egypt market

o   Performance Surfactants volume stood at 1,04,668 MT for 9MFY20, up by 7.1% on YoY basis

o   Specialty Care Products volume stood at 61,439 MT for 9MFY20, up by 3.1% on YoY basis

·         EBITDA for 9MFY20 stood at Rs. 272.2 Cr as against Rs. 259.3 Cr in 9MFY19, up by 5.0% YoY

·         EBITDA/MT remained stable at Rs. 16,387 for 9MFY20 as against Rs. 16,489 in 9MFY19

·         PAT stood at Rs. 167.6 Cr for 9MFY20 as against Rs. 133.9 Cr in 9MFY19 up by 25.2% YoY

About Galaxy Surfactants Limited: Incorporated in 1986, Galaxy Surfactants Ltd is leading manufacturers of Performance Surfactants and Specialty Care products with over 200 product grades. These products are used in consumer-centric Home and Personal care products like hair care, oral care, skin care, cosmetics, soap, shampoo, lotion, detergent, cleaning products etc.

Preferred suppliers to leading MNC’s, Regional and Local FMCG brands. Our key customers include Unilever, Reckitt Benckiser, P&G, L’OREAL, Himalaya, Colgate Palmolive, CavinKare etc.

Company has its manufacturing facilities located in India (5), Egypt (1) and USA (1).

For more information about the company, please visit our website www.galaxysurfactants.com 

Safe Harbor: Statements in this document relating to future status, events, or circumstances, including but not limited to statements about plans and objectives, the progress and results of research and development, potential project characteristics, project potential and target dates for project related issues are forward-looking statements based on estimates and the anticipated effects of future events on current and developing circumstances. Such statements are subject to numerous risks and uncertainties and are not necessarily predictive of future results. Actual results may differ materially from those anticipated in the forward-looking statements. The company assumes no obligation to update forward-looking statements to reflect actual results changed assumptions or other factors.ends