Galaxy Surfactants (GALAXYSURF) Q4 00/01 earnings summary

Executive summary

• FY ended 30 Jun 2001 sales rose to ₹10,756 lakh from ₹10,593 lakh, while net profit fell to ₹267 lakh from ₹771 lakh, mainly on higher interest and depreciation costs.

• Expansion and debottlenecking came onstream in Q3, limiting FY benefits; the first full-year contribution was expected to support a brighter outlook.

Financial highlights

• Revenue was ₹10,756.01 lakh vs ₹10,592.61 lakh; profit before tax was ₹288.26 lakh vs ₹861.95 lakh, and net profit was ₹267.26 lakh vs ₹770.95 lakh.

• Profit before interest and depreciation was ₹1,823.09 lakh vs ₹2,024.76 lakh; interest and finance charges rose to ₹997.01 lakh from ₹739.78 lakh, and depreciation to ₹537.82 lakh from ₹423.03 lakh.

• Proposed equity dividend was 10% (₹1/share) on enlarged paid-up capital, down from 25% (₹2.50/share); ₹85.64 lakh was provided for dividend.

Outlook and guidance

• Q1 FY2001-02 sales were ₹3,061 lakh vs ₹2,456 lakh, up 25% YoY, supported by domestic, export and specialty-chemical business.

• Outlook for FY2001-02 was described as bright, with a full-year benefit expected from expansion and debottlenecking; specialty international business remained a priority.