H1FY22 Consolidated Performance:
 

Mumbai, 11th November 2021:

Galaxy Surfactants Limited, a leading manufacturer of performance surfactants and specialty care products with over 210 product grades used in Home and Personal Care industry, has announced its un-audited financial results for the Quarter 30th September 2021.

Commenting on the performance Mr. U. Shekhar, Managing Director, Galaxy Surfactants Limited said,

“This has been a challenging quarter for us. While the demand scenario remains intact and robust, our ability to service the same got seriously impinged in this quarter. While Q-O-Q the volumes have degrown marginally by 2%, Y-O-Y, we have registered a decline of 7%.

For H-1 while our volumes have grown 3.3%, our EBITDA has declined by 13%. The EBITDA decline is a result of the extreme Supply driven volatility we experienced in Q-2 FY 2021-22 which adversely impacted volumes and margins.

Q-2 began with availability issues with respect to Lauryl Alcohol (sourced from SE Asia which was majorly shut due to the pandemic) and Ethylene Oxide, the two key feedstocks used for manufacturing our Performance Surfactants. This adversely impacted our performance in AMET as well as India. One positive that has emerged in this gloomy environment is the structural uptick we are seeing in our domestic (India) volumes. Despite the heavy base (pent up demand) in Q-2 FY 2020-21 and supply led volatility in Q-2 FY 2021-22, we have Y-O-Y held ground and registered a 1% Q-O-Q growth.

With the shipping industry facing a major overhaul, freight rates have been hitting the sky, with month-on-month rates rising by nearly 10-40%. This, along with the container unavailability issues led to delays in shipment, as well as increased costs which adversely impacted our Specialty Volumes and overall Margins.

Cumulatively put together, the supply side factors adversely impacted our EBITDA by Rs. 20 Crores in this Quarter. The increased lead times combined with volatility in feedstock prices further impacted margins in this quarter.

To conclude, we envisage the current supply driven volatility to continue atleast for next 2-3 quarters. While the situation with respect to availability of feedstocks seems to be normalising, we have now entered the inflationary phase, with prices of some of our critical feedstocks rising nearly 50% in last 1 month.

While the demand scenario continues to remain robust, we do hope normalcy gets restored when it comes to the supply side. At Galaxy while the performance might be muted, we remain fully committed to turn this around.”

Performance Highlights:
 
Q2FY22 Performance
 

H1FY22 Performance