Galaxy Surfactants reported 10.72% rise in Sep-20 quarter top line sales revenues yoy at Rs718.68cr. The company is into manufacture of surfactants as inputs for the home care and personal care segments. That segment was not too impacted by the COVID with home care products actually seeing extra demand post COVID. That is evident from the fact that even in the Jun-20 quarter, the impact was minimal.
For the Sep-20 quarter, the operating profits were up by 44.24% at Rs104..82cr due to operating costs increasing at a slower pace. The operating margin expanded from 11.20% in Sep-19 quarter to 14.59% in Sep-20 quarter.
Profit after tax (PAT) for the Sep-20 were up by 21.9% to Rs81.74cr. Despite the operating profit growth being higher, the impact on net profits got muted due to a spike in tax costs in the Sep-20 quarter. PAT margins improved marginally from 10.34% in Sep-19 quarter to 11.37% in the Sep-20 quarter.
Financial highlights for Sep-20 compared yoy and sequentially
|
|
Galaxy Surfactants |
|
|
|
|
Rs in Crore |
Sep-20 |
Sep-19 |
YOY |
Jun-20 |
QOQ |
|
Revenues |
718.68 |
648.82 |
10.77% |
607.16 |
18.37% |
|
Operating Profit |
104.82 |
72.67 |
44.24% |
74.03 |
41.59% |
|
Profit After Tax (PAT) |
81.74 |
67.07 |
21.87% |
56.49 |
44.70% |
|
|
|
|
|
|
|
|
Diluted EPS (Rs) |
₹ 23.06 |
₹ 18.92 |
|
₹ 15.93 |
|
|
Operating Margins |
14.59% |
11.20% |
|
12.19% |
|
|
PAT Margins |
11.37% |
10.34% |
|
9.30% |
|
Key takeaways from the Sep-20 quarter results
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Despite the pandemic, the net cash generated by operating activities in the Sep-20 half year was 85% higher at Rs186cr. This was on the back of much improved working capital management, which was necessitated by the uncertainty in costs structures and payment cycles caused by the pandemic.
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