Galaxy Surfactant's consolidated net profit doubled to Rs 83.9 crore in Q2 FY23 from Rs 41.9 crore in Q2 FY22.
Net revenue from operations rose by 40.4% to Rs 1,231.6 crore in the second quarter from Rs 877.3 crore recorded in the same period last year.
Total volumes stood at 59,283 million tons (MT) for Q2 FY23 as against 58,814 million tons (MT) in Q2 FY22, up by 0.8% YoY.
Among geographies, Rest of the world markets and the Indian market recorded a growth of 13.6% YoY and 8.5% YoY, respectively. However, Africa Middle East Turkey (AMET) markets recorded a de-growth of 16.8% YoY.
While Performance Surfactants volume rose by 2.3% YoY to 38,902 MT, Specialty Care Products volume increased by 2% to 20,381 MT in Q2 FY23.
On the expenses front, cost of material consumed was Rs 900.5 crore (up 40% YoY), employee expenses amounted to Rs 62.7 crore (up 31% YoY) and other expenses aggregated to Rs 136.8 crore (up 20% YoY).
Profit before tax jumped 97.12% to Rs 106.7 crore in the quarter ended 30 September 2022 from Rs 54.1 crore reported in the same period last year.
EBITDA improved 74.9% to Rs 132.8 crore in Q2 FY23 from Rs 75.9 crore in Q2 FY22. EBITDA margin stood at 10.8% in Q2 FY23 as compared to 8.6% in Q2 FY22.
EBITDA per MT stood at Rs 22,396 for Q2FY23 as against Rs 12,907 in Q2FY22, a growth of 73.5% on a YoY basis.
Shekhar, managing director, Galaxy Surfactants, said, In a half that has seen Fatty Alcohol prices correct by more than 50%, freight rates correct upwards of 50%, and demand contract globally, a good defense i.e., risk management combined with a robust product portfolio, judicious price calls along with experience in handling such volatility enabled us to deliver a 100% growth in Profits for Q2 FY23 and 55% for the first half vis-a-vis H1 FY22. Thus, enabling the momentum garnered in Q4 FY22 to continue into the H1 FY23.
While the underlying pressure on volumes continues, demand continues to remain resilient in India. The continued slowdown in Europe and a hyper inflationary scenario which adversely impacts the mass and masstige segments remain the key risks going ahead.
Though supply led volatility has reduced in the first half, it yet remains at elevated levels. To conclude, while the first half has been good for us, pickup in volumes remains the key going ahead.
Galaxy Surfactants is leading manufacturers of performance surfactants and specialty care products with over 220+ 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.
The scrip advanced 0.16% to Rs 2809.95 on the BSE.
Powered by Capital Market - Live News
Disclaimer: No Business Standard Journalist was involved in creation of this content
