Galaxy Surfactants slips 3% after Q4 PAT declines

Galaxy Surfactant shares dropped nearly 3 percent in afternoon trade on May 24, following the company’s disappointing Q4 earnings results. At 2:20 pm, the company’s shares were trading 2.83 percent lower at Rs 2520 on the NSE. The stock fell as much as 6.66 percent intraday, falling the most since August end 2020.

The manufacturer of performance surfactants and specialty care products, reported an 8 percent year-on-year (YoY) decline in net profit and a 14.8 percent sequential decline to Rs 90.5 crore in Q4FY23. In the corresponding quarter of previous fiscal year, the company had reported net profit of Rs 98.4 crore.

For the period ending March 31, 2023, the company’s total income stood at Rs. 981.50 crore, reflecting a 6.89-percent YoY decline compared to Rs 1,054.13 crore for the same period in 2022. However, on an annual basis, Galaxy Surfactant showed positive growth, with total income reaching Rs 4,455.09 crore during FY23, a 20.47-percent increase compared to Rs 3,698.22 crore in FY22.

Additionally, the net profit saw a significant jump of 45 percent, with the profit after tax amounting to Rs 381 crore for FY23 compared to Rs 262.78 crore in the previous year.

The company’s earnings per share (EPS) for the FY23, stood at Rs 107.46, a significant increase from Rs 74.12 reported in FY22.

The plan ahead

In light of the company’s performance, U Shekhar, the managing director at Galaxy Surfactants, stated, “The geopolitical headwinds and the strengthening dollar did impact consumption in Europe, Africa, the Middle East, and Turkey, but with the situation slowly but steadily improving on the ground, we see growth in these markets in the coming quarters”.

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Looking ahead, Shekhar emphasised that FY 2023-24 would focus on sustainable volume-led growth, capitalising on emerging trends through innovation, and ensuring sustainable growth for both segments of the business.

Meanwhile, the board of directors of Galaxy Surfactants have recommended a final dividend of Rs 4 per equity share for FY23.

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