Galaxy Surfactants Ltd's Q3FY19 consolidated net profit rises 1.3% yoy to Rs41.85cr: Misses Estimates

The company’s consolidated revenue stood at Rs679.47cr, up 13.7% yoy but down 0.86% qoq.

Feb 04, 2019 06:02 IST India Infoline Research Team

Galaxy Surfactants Ltd Q3FY19

Consolidated Results Q3FY19: (Rs. in cr)

Q3FY19 YoY (%)
Revenue 679.47 13.7
EBITDA 82.43 9.3
EBITDA Margin (%) 12.1 [49]
Net Profit (adjusted) 41.85 1.3
***EBITDA margin change is bps
Galaxy Surfactants Ltd's consolidated revenue for Q3FY19 came in at Rs679.47cr, up 13.7% yoy. The operating profit for the quarter stood at Rs82.43cr, a rise of 9.3% yoy. However, the EBITDA margin contracted by ~49bps yoy in Q3FY19 to 12.1%. The net profit after tax came in at Rs41.85cr, an increase of 1.3% yoy. The revenue and EBITDA are in line with consensus estimates. However, the net profit missed the consensus estimates by 15%.

• Gross margin expanded by ~113bps yoy to 29.8% on account of the positive impact from forex fluctuations during the quarter. The absolute gross profit increased by 18.1% yoy to Rs202.4cr backed by higher sales volume made by the company. This is despite volatile raw material prices and foreign exchange fluctuations.
• However, the EBITDA margin declined by ~49bps on account of higher other expenses due to increase in freight and power & fuel costs.
• Effective tax rate increased to 34% during Q3FY19 vs. 29% during Q3FY18. This led to a drag in the net profit of the company during the quarter.

Technical View:

Galaxy Surfactants Ltd is currently trading at Rs. 1,105, down by 5.95 points or 0.54% from its previous closing of Rs. 1,110.95 on the BSE.
The scrip opened at Rs. 1,094.50 and has touched a high and low of Rs. 1,105 and Rs. 1,083.40 respectively. So far 859 (NSE+BSE) shares were traded on the counter. The stock is currently trading above its 200 DMA.

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