Galaxy Surfactants reported earnings for the June-ended quarter. The company reported mixed Q1FY22 earnings. While there has been a gorevenue growth year-on-year (YoY) and also sequentially, however there is some pressure on the margin front. The company reported a 36 percent jump in its profit after tax to Rs 76.8 crore for the June 2021 quarter. The company's PAT stood at Rs 56.5 crore during the corresponding quarter of 2020. Its total revenue in April-June 2021 grew 36.7 percent to Rs 830.9 crore, compared to Rs 607.8 crore in the year-ago period. U Shekhar, Founder, Promoter and Managing Director of Galaxy Surfactants, discussed the performance.

He said, “Fatty alcohol prices have increased by 90 percent YoY. This is something that will continue because of supply side constraints, challenges and unavailability of people in countries like Malaysia and Indonesia to work on the farms.”

Fatty alcohols are mainly used in the production of detergents and surfactants.

Galaxy Surfactants is a chemical manufacturing company. Their products range from skincare to fatty alcohol variants used by the FMCG industry.

On demand and production, he said, “Demand has been pretty good from the market side. Though there is some amount of tepidness as far as India is concerned but then we have been facing production constraints, raw material availabilities and logistical challenges.”

He added that logistical challenges started in October last year. He explained, “They have only maintained their disruptive abilities. So things have only gone from bad to bad, there has been no improvement. How do we manage the situation is important to us and this is what we have done and we have grown every quarter, though not to the extent that we would have liked to and not to the extent where the market would have liked us to.”

(With inputs from PTI)

For the full interview, watch the accompanying video.

(Edited by : Dipika Ghosh)