For Galaxy Impact of Inventory destocking cycle may be behind says Galaxy,s MD U Shekhar.
Galaxy Surfactants Limited, said that impact of inventory destocking cycle seen during first half FY24 may be behind in Q3 . The volume growth momentum may further catch pace in Q3 and FY24 may see volume growth ahead of company’s guidance of 6-8% Galaxy Surfactants had seen volumes during the Q2FY24 rise 9.8% year-on-year. Most of its markets saw improved pace of growth.
Notably the volumes grew at a faster pace compared to Q1 and thus volume growth for first half at 8.6% already has beaten the company’s guidance of 6-8% during FY24. Also read- Nifty IT gains 2.35% on drop in US inflation; Persistent Systems hits record high Demand momentum India remains resilient. Improving demand for premium categories aids growth.
Volume growth in Egypt Turkey are also likely to momentum improve further in the Q3 feels Shekhar. Only US may take a few quarters for volume momentum to catch pace. Shekhar however remains optimistic on European demand growth.
The realizations remain lower and hence the company’s revenues' Consolidated revenues of Galaxy Surfactants at ₹983.1 crore came 4% higher sequentially though were still down 20% year-on-year. Galaxy’s Earnings before interest tax depreciation and amortization or Ebitda at ₹127.6 crore improved 1.5% sequentially though still was down 3.9% year-on-year. Galaxy’s consolidated net profit at ₹77.4 Crore grew 3% sequentially though it was down 7.7% year-on-year.
Fatty Alcohol prices in this quarter decreased to an average price of $ 1,415 /MT versus, average prices of $ 1,490 /MT in Q2FY23. This boosted profitability. The improved sequential performance encourages and unsurprising share prices of Galaxy Surfactants are up more than 10% since October lows.
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