Galaxy Surfactants stock slumps 4% after PAT for Q3FY22 declines 46.5% yoy to Rs45.6 crore

14 Feb 2022 , 09:45 AM

Galaxy Surfactants Limited, a leading manufacturer of performance surfactants and specialty care products with over 210 product grades used in the Home and Personal Care industry, has announced its unaudited financial results for the quarter and nine months ended December 31, 2021.

Total volumes stood at 58,027 MT for Q3FY22 as against 58,238 MT in Q3FY21, down by 0.4% yoy. Revenue increases 37.3% yoy to Rs930.9 crore in Q3FY22 from Rs677.7 crore in Q3FY21. Profit After Tax (PAT) stood at Rs45.6 crore for Q3FY22 as against Rs85.2 crore in Q3FY21 down by 46.5% on a yoy basis.

EBITDA for Q3FY22 stood at Rs78.2 crore as against Rs122.5 crore in Q3FY21, down by 36.2% on a yoy basis. EBITDA/MT stood at Rs13,468 for Q3FY22 as against Reported EBITDA/MT of Rs21,036 in Q3FY21, down by -36.0% on a yoy basis. EBITDA/MT stood at Rs13,468 for Q3FY22 as against Normalized EBITDA/MT (excluding export incentives realized from Egypt) of Rs18,632 in Q3FY21, down by 27.7% on a yoy basis.

ROW markets grew by 2.5%. Indian market grew by 6.9%. AMET market de-grew by 9.2%. Performance Surfactants volume stood at 36,983 MT for Q3FY22, up by 1% on a yoy basis. Specialty Care Products volume stood at 21,044 MT for Q3FY22, down by 2.7% on a yoy basis.

The company said in a filing that total volumes stood at 1,76,706 MT for 9MFY22 as against 1,73,157 MT in 9MFY21, up by 2.0% yoy. Revenue increases 31.6% yoy to Rs2,644.1cr in 9MFY22 from Rs2,0008.8cr in 9MFY21. PAT stood at Rs164.4 crore for 9MFY22 as against Rs223.5 crore in 9MFY21 down by 26.4% yoy.

EBITDA for 9MFY22 stood at Rs267.1 crore as against Rs339.7 crore in 9MFY21, down by 21.4% yoy basis. EBITDA/MT stood at Rs15,114 for 9MFY22 as against Rs19,620 in 9MFY21, down by 23.0% yoy basis.

ROW markets grew by 6.7%. Indian market grew by 11.4%. AMET market de-grew by 9.6%. Performance Surfactants volume stood at 1,13,784 MT for 9MFY22, down by 0.6% on a yoy basis. Specialty Care Products volume stood at 62,922 MT for 9MFY22, up by 7.2% on a yoy basis.

At around 9.48 am, Galaxy Surfactants Ltd was trading at Rs2,782.65 per share down by Rs116.5 or 4.02% from its previous closing of Rs2,899.15 per share on the BSE.

U. Shekhar, Managing Director, Galaxy Surfactants Limited said, “The supply-driven volatility that impacted our Q-2 performance continued in Q-3. Rising input costs along with supply chain constraints, be it in terms of on-time container availability or port congestions severely impinged our ability to service our customers. While Volumes have remained flat Y-O-Y, the decline in EBITDA/MT impacted our overall performance significantly. Both these factors need to be understood in the Global Context.

Rising feedstock prices combined with availability issues and higher lead times impacted our operations. This when combined with the volatility we have been experiencing in the export markets on account of on-time availability of containers and rising freight costs have proved to be the worst possible mix.”