HDFC Securities: Galaxy Surfactants’ Higher Per-Unit Ebitda Drives Q1 Earnings
BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.
HDFC Securities Report
Galaxy Surfactants Ltd.’s Q1 FY21 Ebitda/adjusted profit after tax was 74%/2.3 times higher than estimates, attributable to (1) 23% higher volumes and (2) 42% higher per-ton Ebitda.
Revenue declined merely by 8/9% QoQ/YoY to Rs 6 billion due to (1) only 11/5% QoQ/YoY decline in overall volumes, (2) 4/ down 4% QoQ/YoY growth in per-unit realisation.
Strong demand for performance surfactants (up 8% YoY) was offset by lower demand for speciality care products (down 26% YoY).
Increased awareness for hygiene, given Covid-19, led to a spike in volume offtake for the former; however, as discretionary spending reduced during the pandemic, the latter suffered a blow.
Despite a strong demand, labour shortage and lower production by customers (supply constraints) dragged overall volumes of the company.
Click on the attachment to read the full report:
This report is authored by an external party. BloombergQuint does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the brokerage and do not represent the views of BloombergQuint.
Users have no license to copy, modify, or distribute the content without permission of the Original Owner.