In This Article:
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Volume Growth: H1 volume growth at 6.3%, with guidance retained at 6% to 8%.
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EBITDA per Metric Ton: Stood at 20,097 per metric ton, below the guided band.
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India Growth: Expected full-year growth around 1% to 2%.
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Africa, Middle East, and Turkey Volume Growth: Targeting 6% to 8% growth in H2 FY25.
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Rest of the World Growth: 26% growth for H1, with expected moderation in H2.
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Performance Segment Volume Growth: 5% to 8% growth.
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Massive Segment Volume Growth: 7.2% growth.
Release Date: November 13, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Galaxy Surfactants Ltd (NSE:GALAXYSURF) reported a sequential volume growth compared to Q1, indicating resilience despite supply chain challenges.
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The rest of the world market showed strong double-digit growth, driven by premium specialty products, contributing positively to the company's performance.
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The company maintained its volume guidance of 6% to 8% for the fiscal year, with efforts to end in the upper range.
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Galaxy Surfactants Ltd (NSE:GALAXYSURF) is focusing on expanding its presence in Europe and Latin America, which are seen as potential growth markets.
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The company is optimistic about the demand revival in the Africa, Middle East, and Turkey (AMET) region, expecting a return to 6% to 8% volume growth in H2 FY25.
Negative Points
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The Indian market experienced flat volume growth due to slowing demand for premium home and personal care products and slower than expected rural recovery.
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Supply chain challenges, including the rise in fatty alcohol prices and geopolitical tensions, continue to impact operations.
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The AMET market faced supply disruptions due to geopolitical issues, affecting the company's ability to capitalize on demand revival.
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EBITDA per metric ton was below the guided range, impacted by raw material price volatility and supply chain costs.
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The company faces challenges in passing on raw material cost increases to customers, particularly if prices fluctuate significantly.
Q & A Highlights
Q: Can you provide insights on the current demand situation in the Indian market and any expected recovery? A: The Indian market showed a 3% volume improvement in Q2 compared to Q1. However, demand challenges persist, particularly in urban areas. It is expected to take 2 to 3 quarters for improvement, with companies working on calibrated price increases due to rising commodity prices. (K. Natarajan, Managing Director)
Q: What is the status of the AMET market, and why has it not performed as expected? A: The AMET market faced supply chain disruptions due to the Red Sea blockade, affecting Egypt for about 30 days. Demand is reviving, and improvements are expected in the current quarter, provided geopolitical tensions do not escalate further. (K. Natarajan, Managing Director)