Q3 2025 Galaxy Surfactants Ltd Earnings Call Transcript
Key Points
- Galaxy Surfactants Ltd (NSE:GALAXYSURF) reported a 9% volume growth for the quarter in the rest of the world, with YTD volume growth at 20%, driven by masstige specialties.
- The company has launched a new premium product, Galseer DermaGreen, which is receiving positive responses and is expected to be a high-margin product.
- Easing of supply chain issues and improved systemic liquidity are expected to positively impact future performance.
- The company remains confident in its growth trajectory, maintaining a volume growth guidance of 6% to 8% for the next two years.
- Galaxy Surfactants Ltd (NSE:GALAXYSURF) is focusing on enhancing its product and customer baskets to ensure consistent growth and profitability.
- The company experienced a weak quarter with a 1% decline in overall volumes, driven by a 7% decline in India.
- Higher raw material prices, particularly a 40% rise in fatty alcohol prices, have negatively impacted sentiment and demand.
- The EBITDA per metric ton guidance for the year has been revised down to INR 19,500 to INR 20,000, below the initial guidance of INR 20,500 to INR 21,500.
- There has been a slower than expected conversion in the specialty ingredient segment, impacting growth.
- Return ratios have deteriorated, with ROCE dropping to 14.5% and ROE to 13%, attributed to investments not yet yielding expected returns.
Ladies and gentlemen, good day and welcome to the Galaxy Surfactants Limited Q3 and 9 Month FY25 Earnings Conference Call (Operator Instructions) Please note that this conference is being recorded. I now hand the conference over to Mr. K. Natarajan, Managing Director of Galaxy Surfactants Limited.
Thank you, and over to you, sir.
Thank you, and a very good morning, ladies and gentlemen. It gives me immense pleasure to welcome you all to our Q3 and YTD December FY 2025 conference call. At the outset, this has been a relatively weak quarter. But despite the weakness, we are clear there are several one-offs that caused this. I will now be taking you through the factors that adversely impacted this quarter.
Most of these factors are short-term by nature, and structurally, let me assure you, we do not see any change in our growth trajectory. Let me start with the demand side. India makes up 40% of our business, weaker than expected festive season, excess channel inventory,
| Access to All Earning Calls and Stock Analysis | |
| 30-Year Financial on one screen | |
| All-in-one Stock Screener with unlimited filters | |
| Customizable Stock Dashboard | |
| Real Time Insider Trading Transactions | |
| 8,000+ Institutional investors’ 13F holdings | |
| Powerful Excel Add-in and Google sheets Add-on | |
| All data downloadable | |
| Quick customer support | |
| And much more... |
Trustpilot
We'd love to learn more about your experiences on GuruFocus.com and how we can improve!
Take Survey
