Galaxy Surfactants CEO Reiterates Over 6% Volume Growth Guidance For FY25

Galaxy Surfactants' Managing Director and Chief Executive Officer K Natarajan is confident of the company achieving 6–8% volume growth in the ongoing fiscal, driven by revival of demand in the domestic market and improving conditions in the foreign territories.

The manufacturer of specialty chemicals had earlier forecast a 6–8% volume growth for the financial year 2024–25.

In a conversation with NDTV Profit, Natarajan said that the company retains the guidance. “We are still sticking to the 6–8% volume growth guidance and what is built into that is that India starts making a turnaround, although it may not be very dramatic.”

According to him, improvement in supply-side issues in the Africa, Middle East, and Turkey markets as well as healthy performance in other geographies would help the company achieve its volume growth targets.

Explaining further, the top executive added, “We have the other geographies performing as well as they performed in H1. The supply chain challenges majorly impacted our AMET market but they seem to be getting better. We should be able to deliver on the 6–8% volume growth guidance.”

The company had mentioned in its September quarter investor presentation that in the first half of FY25, volume growth contribution from India remained flat compared to the similar period of the preceding fiscal.

This was due to a slowdown in the premium consumption and a lower-than-expected recovery in rural areas, the company said.

Commenting on the slowdown in India, Natarajan said that there was still “some distance to cover” in the domestic market.

“Our customers tell us they are making a lot of effort to revive demand. It will be at least two quarters before we see things turning around in India,” he said.

In the June quarter, Galaxy Surfactants had projected double-digit Ebitda per metric tonne growth in the AMET market in FY25.

However, in its investor presentation, the company has stated that supply chain volatility and the escalating geopolitical situation continue to pose challenges.

At the same time, Natarajan added that the company will deliver on its guidance despite the headwinds.

“We have some headwinds, but we have the ability to manage those as well. My team is working to ensure that we are able to deliver on the Ebitda per metric tonne as well,” he noted.

“Going ahead there are some significant challenges but we are confident that we will be able to turn that around,” the MD said.

Natarajan added that the company’s specialty and performance surfactants vertical will benefit from an increase in demand for premium products.

Elaborating, he said, “The premium category is defined by our customers. We look at it as specialty and performance surfactants, which is close to about 35% today. Within that, we see the portion of ingredients that go into the premium stock keeping units going up steadily with the projects we have in the pipeline, and that will help us deliver superior Ebitda per metric tonne.”

Shares of Galaxy Surfactants jumped 7.9% in intraday trade to touch a high of Rs 2,950 apiece on the NSE on Monday.

The stock closed 4.6% higher at Rs 2,860.10 per share on the NSE, compared to a 1.32% rise in benchmark Nifty 50.