Did Galaxy Surfactants' Q4 Net Profit Take a Hit of 2.1%?
Click to start listening
Synopsis
Galaxy Surfactants faces a challenging quarter with a 2.1% drop in net profit amid rising expenses. However, revenue growth presents a glimmer of hope for recovery in the Indian market. Discover how the company is navigating these turbulent waters and what the future holds.
Key Takeaways
- Net profit decreased by 2.1% to Rs 75.87 crore.
- Total expenses surged by 22.54% to Rs 1,052.56 crore.
- Revenue from operations increased by 23.24% to Rs 1,144.93 crore.
- Volume growth of 9% in Q4 and 17% for the fiscal year.
- Positive outlook for the Indian market due to easing inflation.
Mumbai, May 17 (NationPress) Galaxy Surfactants Limited has announced a net profit decrease of 2.1 percent, bringing it down to Rs 75.87 crore, a slight drop from Rs 77.50 crore in the corresponding quarter of the previous financial year.
In a recent filing to the stock exchange, the company revealed that its total expenses skyrocketed by 22.54 percent, reaching Rs 1,052.56 crore compared to Rs 858.95 crore last fiscal year.
The cost of materials consumed surged significantly by approximately 28 percent, rising to Rs 809.21 crore from Rs 632.71 crore.
Additionally, employee benefits and finance costs saw increases of 5.38 percent and 15.4 percent, respectively.
Other expenses recorded a modest rise of 3.34 percent, while depreciation and amortization expenses increased by 8.09 percent.
However, revenue from operations climbed by 23.24 percent to Rs 1,144.93 crore in Q4, up from Rs 929 crore a year prior.
Total income also saw a significant rise of nearly 21 percent, reaching Rs 1,152.68 crore, up from Rs 952.91 crore.
K. Natarajan, the Managing Director of Galaxy Surfactants, indicated that the quarter posed challenges, particularly for the Indian market, which continues to encounter obstacles.
He noted, “The anticipated recovery in demand was postponed due to the ongoing effects of last quarter’s slowdown and a sharp increase in fatty alcohol prices beginning from Q2.”
Natarajan mentioned that the AMET region remained stagnant, but early signs of demand stabilization and improving supply chain issues provided cautious optimism.
In contrast, the rest of the world (ROW) demonstrated strong performance in both Q4 and FY25, bolstered by strategic global expansions across Europe, APAC, North America, and Latin America.
“The company achieved a volume growth of 9 percent in Q4 and 17 percent for the entire fiscal year,” he stated.
Natarajan also emphasized improvements in operational efficiency and cost optimization, with EBITDA per metric ton (MT) rising 24 percent quarter-on-quarter (QoQ) to Rs 21,715.
“For the full fiscal year, EBITDA/MT was Rs 19,868, roughly in line with FY24 levels,” he added.
Looking ahead, he expressed optimism for the Indian market, anticipating improvement due to decreasing inflation, lower interest rates, and supportive fiscal policies.
Point of View
It's crucial to highlight the resilience of companies like Galaxy Surfactants amid economic challenges. Their ability to navigate rising costs while still achieving revenue growth reflects both strategic foresight and adaptability. The future outlook, influenced by easing inflation and supportive policies, suggests a cautiously optimistic path ahead.
NationPress
21/07/2025
Frequently Asked Questions
What caused the decline in Galaxy Surfactants' net profit?
The decline was primarily attributed to rising expenses, particularly in material costs and finance, despite an increase in revenue from operations.
How did total expenses change in Q4?
Total expenses increased significantly by 22.54% to Rs 1,052.56 crore compared to the previous fiscal year.
What is the outlook for the Indian market moving forward?
The outlook appears optimistic, with expectations of easing inflation and lower interest rates potentially boosting demand.
What strategic regions are contributing to Galaxy Surfactants' growth?
The company's growth is supported by strategic expansions in Europe, APAC, North America, and Latin America.
What improvements did Galaxy Surfactants report in operational efficiency?
The company reported a 24% increase in EBITDA per metric ton quarter-on-quarter, indicating better operational efficiency and cost optimization.
