Published on 26/06/2020 1:27:29 PM | Source: Angel Broking Ltd

Quote on 4QFY20 results of Galaxy Surfactants by Mr. Keshav Lahoti, Angel Broking

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Below is the Quote on 4QFY20 results of Galaxy Surfactants by Mr. Keshav Lahoti, Associate Equity Analyst, Angel Broking Ltd

“Due to lockdown in the last week of March, Galaxy Surfactants consolidated revenue de-grew by 3.7% YoY to Rs.656.7 crore for Q4FY20. For the quarter, gross margins improved from 49.9% to 57.1% YoY due to reduction in raw material cost. EBIDTA grew 7.8% YoY due to increase in margins by 167bps to 15.6% for the quarter. PAT reported double digit growth of 10% mainly due to decrease in raw material cost and reduction in tax rate as the company has opted for a new tax rate. 

Post the initial phase of the shutdown the company has restarted all its plants from the first week of April in phased wise manner given that its products are part of essential items used for cleaning and sanitizing purposes except Tarapur plant which was restarted in June due to safety incidents. Management do not expect any substantial contraction in the demand for their products post COVID 19 as they are used in manufacture of consumer cleaning products in home and personal care, although they do expect demand for premium category specialty products being impacted by down trading due to decline in consumer incomes. Overall the company reported a good set of numbers despite the Covid-19 related issues.”

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