Galaxy Surfactants (GALAXYSURF) Q1 24/25 earnings summary

Executive summary

• Achieved 8% year-over-year volume growth in Q1FY25, driven by Rest of World markets, with EBITDA showing both year-over-year and sequential improvement despite volatile supply chain and geopolitical challenges.

• India market remains resilient with rural demand recovery and positive rainfall outlook; global demand is gradually improving.

• Unaudited consolidated and standalone financial results for the quarter ended June 30, 2024, were approved by the Board on August 8, 2024.

• Financial statements were reviewed by statutory auditors with no material misstatements identified.

Financial highlights

• Consolidated revenue from operations was ₹979.5 crore, up 3.7% year-over-year and 2.8% sequentially; consolidated net profit after tax was ₹79.72 crore, up 6% year-over-year.

• EBITDA for Q1FY25 reached ₹129.5 crore, a 3% increase year-over-year and 3.1% sequentially; EBITDA margin held steady at 13.2%.

• PAT margin at 8.1%; basic and diluted EPS (consolidated) for the quarter were ₹22.48, up from ₹21.20 year-over-year.

• Standalone revenue was ₹677.50 crore, with standalone net profit after tax at ₹11.93 crore, down from ₹17.50 crore year-over-year.

• Fatty alcohol prices rose to $1,548/MT in Q1FY25 from $1,407/MT in Q4FY24 and $1,240/MT in Q1FY24.

Outlook and guidance

• Guidance for FY25 remains at 6%-8% volume growth and EBITDA per metric ton of INR 20,500–21,500; logistic and freight challenges expected to persist due to Red Sea crisis.

• Premium Speciality Care ingredients expected to drive higher EBITDA in H2.

• India’s rural demand recovery and good rainfall expected to support continued momentum.

• Cautiously optimistic on sustaining growth if supply chain conditions do not worsen.