Galaxy Surfactants (GALAXYSURF) Q2 24/25 earnings summary

Executive summary

• Sequential volume growth achieved in Q2 FY25 despite supply-side headwinds and demand slowdown in key markets; strong ROW performance drove overall growth, while India and AMET volumes remained flat.

• Achieved consolidated revenue of Rs. 2,051.1 crore in H1FY25, up 6.3% year-over-year, with EBITDA rising 5.0% and PAT up 7.8% to Rs. 164.4 crore.

• Unaudited consolidated and standalone financial results for the quarter and half year ended 30th September 2024 were approved by the Board on 11th November 2024.

• Logistics challenges, including the Red Sea crisis, impacted raw material arrivals and finished goods dispatch.

• Business model resilience highlighted by ability to offset regional headwinds with growth in other geographies.

Financial highlights

• H1 FY25 consolidated revenue: Rs. 2,051.1 crore (+6.3% YoY); Q2 revenue: Rs. 1,071.7 crore (+8.7% YoY); EBITDA: Rs. 265.8 crore (+5.0% YoY); PAT: Rs. 164.4 crore (+7.8% YoY).

• Q2 FY25 consolidated revenue from operations was ₹1,062.99 crore, up from ₹983.12 crore in Q2 FY24; H1 FY25 revenue was ₹2,037.05 crore versus ₹1,924.89 crore in H1 FY24.

• EBITDA per metric ton for H1 at INR 20,097, below guidance but expected to improve in H2.

• Cash flow from operating activities in H1FY25 was Rs. 243.3 crore, with closing cash and cash equivalents at Rs. 151.2 crore.

• Standalone H1FY25 revenue: Rs. 1,473.9 crore (+7.0% YoY); PAT: Rs. 100.4 crore (-6.0% YoY).

Outlook and guidance

• Volume growth guidance for FY25 maintained at 6%-8%, aiming for upper band; EBITDA per metric ton guidance retained at INR 20,500–21,500 for FY25, with improvement expected from premium specialties in H2.

• Global demand is gradually improving, but supply chain volatility and geopolitical tensions remain challenges.

• India full-year growth expected at 1%-2%; AMET at 4%-5%; ROW to end in mid-teens.

• Demand revival anticipated in FY26, contingent on improved household and government spending.

• Management continues to assess legal proceedings regarding a land order from GIDC, with no provision made as legal advice indicates a strong case.