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Galaxy Surfactants Shares Slip 3% After Q4 PAT Drop

Shares of Galaxy Surfactants posted their biggest drop in more than 2 years after Q4 profit slumped.

Shares of Galaxy Surfactant fell nearly 3% in afternoon trading on May 24 after the company reported disappointing fourth-quarter earnings. Shares of the company were trading down 2.83% at Rs 2,520 on the NSE at 2:20 pm. The stock fell as much as 6.66% in intraday trading, the biggest drop since the end of August 2020.

The maker of performance surfactants and professional care products reported an 8% YoY and 14.8% QoQ decline in net profit to Rs 90.5 crore in Q4FY23. In the corresponding quarter of the previous financial year, the company reported a net profit of Rs 98.4 crore.

The company’s gross revenue for the period ending March 31, 2023, was Rs 981.50 crore, a year-on-year decrease of 6.89% compared to 1,054.13 crore in the same period in 2022. However, on a year-on-year basis, Galaxy Surfactant posted positive growth, with total revenue reaching Rs 4,455.09 crore in FY23, up 20.47% compared to Rs 3,698.22 crore in FY22.

Also, net profit jumped by a massive 45% with profit after tax of Rs 381 crore in FY23 compared to Rs 262.78 crore in the previous year.

The company posted earnings per share (EPS) of Rs 107.46 in FY23, a sharp increase from the Rs 74.12 reported in FY22.

Considering the company’s performance, U Shekhar, Managing Director, Galaxy Surfactants, said: “Geopolitical headwinds and a stronger dollar have indeed impacted consumption in Europe, Africa, Middle East and Turkey, but with the situation slowly but steadily improving on the ground, we see the future several quarters of growth in these markets.”

Looking ahead, Shekhar emphasised that FY23-24 will focus on sustainable volume-led growth, capitalise on emerging trends through innovation, and ensure sustainable growth in both business segments.

Meanwhile, the board of Galaxy Surfactants has recommended a final dividend of Rs 4 per share for FY23.

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