Q1 2025 Galaxy Surfactants Ltd Earnings Call Transcript
Key Points
- Galaxy Surfactants Ltd (BOM:540935) achieved volume growth across all regions, with a notable 24.5% increase in the rest of the world markets, driven by strong growth in Europe and Latin America.
- The company reported a 13.3% growth in specialties driven by masstige categories, indicating a positive trend in higher-margin products.
- Despite logistical challenges, the company managed to achieve an EBITDA per metric ton of INR20,197, close to the guided range of INR20,500 to INR21,500.
- India market showed signs of recovery with a 2% growth, supported by strong performance in May and June, and positive outlook due to above-average monsoons and rural spending.
- The company is optimistic about achieving high single-digit growth in the Africa, Middle East, and Turkey (AMET) markets, despite geopolitical and supply chain challenges.
- EBITDA per metric ton was slightly below the guided range due to higher supply chain costs across all locations.
- Logistical challenges, including unavailability of containers and port congestion, adversely impacted volumes and increased lead times.
- The India market experienced slower growth compared to previous years, with only a 2% increase in the quarter.
- The company faced significant challenges in the AMET region due to the Red Sea crisis, impacting the availability of raw materials and production schedules.
- Higher raw material costs, driven by increased lauryl alcohol prices and freight rates, pose a risk to maintaining profitability.
Ladies and gentlemen, good day, and welcome to Galaxy Surfactants Limited Q1 FY25 earnings conference call.
This conference call may contain forward-looking statements about the company, which are based on the beliefs, opinions and expectation of the company as on date of this call. These statements are not the guarantees of future performance and risks and uncertainties that are difficult to predict.
(Operator Instructions) Please note that this conference is being recorded.
I now hand the conference over to Mr. K. Natarajan, Managing Director from Galaxy Surfactants Limited. Thank you, and over to you, sir.
Thank you. Very good morning, ladies and gentlemen. On this call with me is Mr. Vaijanath Kulkarni, my Chief Operating Officer and Executive Director; and Mr. Abhijit Damle, our Group Chief Financial Officer.
So once again, very good morning, it gives me much pleasure to welcome you all to our first investor conference call for FY24-25.
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