Galaxy Surfactants Ltd., a specialty chemicals manufacturer based in India announced its results for the third quarter ended December 31, 2021.
Q3 Results- QoQ
The company’s net profit grew 8.8% to Rs 456.2 million for the period ended December 31, 2021 as against net profit of Rs 419.4 million for the previous quarter.
Net sales grew 5.5% to Rs 9.31 billion during the period ended December 31, 2021 as compared to Rs 8.82 billion during the previous quarter.
Q3 Results- YoY
The company’s net profit declined 46.5% to Rs 456.2 million for the period ended December 31, 2021 as against net profit of Rs 852.3 million during the prior-year quarter.
Net sales increased 37.4% to Rs 9.31 billion during the period ended December 31, 2021 as compared to Rs 6.77 billion during the prior-year quarter.
Total volumes stood at 58,027 MT for Q3FY22 as against 58,238 MT in Q3FY21, down by 0.4% YoY.
Commenting on the performance Mr. 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. This has not only impacted our ability to service the underlying demand but also led to significantly higher cost of operations. This, we believe, will continue till H-1 FY 22-23.
Amidst the gloom, India has been the bright spot for us. Structural uptick in volumes is clearly visible with the current volumes being nearly 10% higher than the pre-COVID average. We have begun operationalizing our new specialty CAPEXs. These should become fully operational by April 1st, 2022.
While the external scenario remains extremely uncertain, internally we are taking the necessary steps to enhance our performance, stability, and delivery. To conclude, we at Galaxy strongly believe the executional challenges we are facing today are in reality laying the foundations for our next decade of growth. While the last two quarters have been challenging, we believe the worst is behind us and we should see better quarters going ahead.”
Galaxy Surfactants Ltd is engaged in the business of manufacture and selling fatty alcohol sulfate and ether sulphate, fatty alcohol ethoxylate & labsa, foam & viscosity boosters, mild surfactants, pearlizers, surfactant blends, syndet & TBB, sunscreens, functional actives, preservatives and blends.