Galaxy Surfactants Ltd is one of India’s leading manufacturer of surfactant and other specialty ingredients which are used in manufacturing of final products like personal and home care. Company is the global supplier to major FMCG companies Like Cavinkare, Colgate-Palmolive (India), Himalaya, Dabur, Jyothy lab etc.

Particulars (In Cr.) 4QFY20 3QFY20 4QFY19 QoQ % YoY%
Revenue 657 626 682 4.95% -3.67%
EBITDA 103 82 95 25.61% 8.42%
EBITDA Margin (%) 15.63% 13.12% 13.97% 251 bps 166 bps
Net Profit 63 48 57 31.25% 10.53%
Net Profit Margin (%) 9.59% 7.67% 8.36% 192 bps 123 bps
Cost Detail 4QFY20 4QFY19 YoY%    
Raw Material Consumption 395.3 454.6 -13.04%
As a % of sales 60.17% 66.66%
Employees cost 47 43 9.30%
As a % of sales 7.15% 6.30%
Other expenditure 90 78 15.38%
As a % of sales 13.70% 11.44%

Result Highlight:

  • Company’s products have been classified as essential items as they are used for cleaning and sanitizing purposes. During Q4FY20 Revenue of the firm declined 4% YoY showing impact of Lockdown which started on March 23, 2020.

  • EBITDA of the firm improved 8% YoY on the back of reduction in raw material cost. Raw material cost of the company decreased 13% on year on year basis in Q4FY20. EBITDA margin also improved 251 bps to 15.63% in Q4FY20 from 13.97% in Q4FY20

  • Net Profit of the company also increased 10% at Rs.63 crore. Net Profit margin improved to 9.59% in Q4FY20.

  • During the quarter ended 31st March, 2020, the Board of directors at its meeting held on 16th March, 2020 has approved interim dividend of Rs. 14 per share on equity share of Rs. 10 each.

  • Plants of the company are located in Maharashtra, Gujarat, Egypt and USA. Units in Tarapur location remained closed due to the safety incident and restarted in June 2020. Plants at Egypt and USA were operational though in a constrained environment influenced by the pandemic.

  • Other income of the company reduced to Rs. 0.01 in Q4FY20 crore from Rs. 3.48 crore in Q4FY19

Management commentary:

  • The supply chain situation has improved as compared to the situation prevailing in April 2020 with gradual relaxations for permissible activities provided in subsequent lockdowns. May was better than April and we expect June to be better than May subject to uncertainties relating to the second wave of infections and community transmission prospects on Unlock.

  • We do not expect any substantial contraction in the demand for our products post COVID 19 as they are used in manufacture of consumer cleaning products in home and personal care, although we do expect demand for premium category specialty products being impacted by down trading due to decline in consumer incomes.

  • With the cash flows continuing on account of ongoing business operations, we do not anticipate any stress on liquidity. Being cash positive in both April & May (including subsidiaries) the liquidity position remains good. We are not seeking any moratorium on our debt repayment obligations and all the debt repayment obligations would be honored on time.


Company reported stable results in Q4FY20, as the products of the company go into day to day consumer needs of Personal and Home care, we do not foresee material demand destruction due to COVID-19. Over the years, the company has evolved from being a local supplier to FMCG companies in India to being a global supplier to FMCG companies across major geographies, such as India, AMET, Asia Pacific (APAC), Americas (North and South) and Europe. Company’s robust product portfolio and expanded geographical footprint are expected to enable them to provide integrated solutions to a wide array of customers, both established multinationals or emerging players in local markets.


Elite Wealth Advisors Limited does/does not do business with companies covered in its research reports. Investors should be aware that the Elite Wealth Advisors Limited may/may not have a conflict of interest that could affect the objectivity of this report. Investors should consider this report as read more

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