Galaxy Surfactants Q4 and FY 24 concall highlights –
FY 23 Volume wise sales data –
Performance surfactants – 153k MT vs 149k MT, growth led by India
Speciality surfactants – 77k MT vs 85k MT, de-growth led by Africa, Gulf and Turkey
FY 23 sales data –
Performance surfactants- 2896 vs 2256 cr, up 28 pc
Speciality surfactants- 1559 vs 1442 cr, up 8 pc
Total- 4455 vs 3698 cr, up 20 pc
EBITDA- 578 vs 413 cr, up 40 pc (margins at 13 vs 11 pc , pretty much back to historical levels)
PAT- 381 vs 263, up 45 pc
Significant decline in freight costs
Pricing and Product mix ensured EBITDA/MT remained healthy
Easing worldwide inflation may help in global demand revival
Company is integrated across full value chain of HPC industry
210+ product grades
07 strategically located plants
74 member R&D facility
Presence across 80 countries
India’s largest maker of Oleochemicals based surfactants and speciality care products for HPC industry
Chief application areas – Hair, Oral, Home & Skincare, Cosmetics, Toiletries
Chief customers – Unilever, Henkel, P&G, Colgate, Reckitt Benckiser, Himalaya, Emami, Dabur, Loreal, Cavincare
Revenue contributions –
MNC – 58 pc
Regional players – 12 pc
Local / Niche players – 30 pc
Biggest RM – fatty alcohol prices are down by 50 pc in last 1 yr
8-10 pc volume growth for next 3-5 yrs is possible in India
Africa, Middle East and Turkey mkt conditions were tough due currency depreciation and inflation. Now these Mkts are showing signs of stabilisation
With receding inflation worldwide demand revival is a good possibility
Aiming at 6-8 pc consolidated vol growth in FY24 with EBITDA growth higher than that
Sales breakup of performance vs speciality surfactants at roughly 66:33
Inventory destocking should be over by Q1 end in US,Europe
As growth in Speciality segment picks up, margins to improve
As inventory in US,Europe gets corrected + Inflation moderates, there should be a descent bump in speciality sales
Maint capex @ 30-50 cr/yr going fwd. Next year expansion Capex to be around 150 cr
Cash on books at around 150 cr
India demand at healthy levels
Products based on fatty alcohols are categorised as performance surfactants. Rest are speciality
Disc: hold a tracking position. Hoping for a performance pick up going fwd
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