Supply side issues likely to continue in FY23, says Galaxy Surfactants' U Shekhar

One of the leading surfactant manufacturers in the country, Galaxy Surfactants on Wednesday posted a solid set of earnings for the March quarter.

Revenue rose 34 percent however, margin contraction continued this quarter, while EBITDA (earnings before interest, taxes, depreciation, and amortization) per kg improved sequentially, according to the company.

Shares of the company gained as much as 9 percent, after two days of consecutive fall, to touch an intraday high of Rs 2821.75.

U Shekhar, founder promoter and MD of Galaxy Surfactants said that on the back of their specialty starting to contribute more and more revenue, the company remains optimistic to do better in FY23 than last year.

“We would remain within the band of Rs 16,000-Rs 18,000, but we should certainly try to go in the upper band with respect to the EBITDA per tonne. On the back of our specialty starting to contribute more and more revenue and for FY23 we remain optimistic to do better than last year.”

Shekhar also said that there has been an impact on consumption in the Indian market.

“The Indian market has been more or less flat. And of course, we have grown just 3.3 percent in the last quarter against 9.3 percent for the entire year, which tells us that in the Indian market there has been an impact on consumption,” Shekhar told CNBC-TV18.

According to him, supply-side issues are expected to continue in FY23. He said, “In FY23, we are not only going to see the supply chain challenges continuing but also the inflationary situation biting demand across various geographies, but we remain optimistic because we believe that these will be short-term blips, which the market will ride over a period of time.”

For the entire interview, watch the accompanying video