Galaxy Surfactants Ltd. · NSE:GALAXYSURF
Galaxy Surfactants — Q1 FY23 Earnings Presentation
38 slides from Galaxy Surfactants's earnings presentation, Aug 9, 2022
Slide 1: Exchange filing cover letter for investor presentation
August 9, 2022 National Stock Exchange of India Limited, BSE Limited, Listing Compliance Department Listing Department, Exchange Plaza, C-1, Block G, Phiroze Jeejeebhoy Towers, Bandra Kurla Complex, Dalal Street, Bandra (East) Mumbai- 400001 Mumbai – 400 051 Scrip Symbol: GALAXYSURF Scrip Code: 5409
Slide 2: Galaxy Surfactants Limited Investor Presentation - August 2022
Galaxy Surfactants Limited Investor Presentation - August 2022
Slide 3: Safe Harbor
Safe Harbor This presentation and the accompanying slides (the “Presentation”), which have been prepared by Galaxy Surfactants Limited. (the “Company”), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for any s
Slide 4: Q1 FY23 Performance Highlights
Q1 FY23 Performance Highlights 3
Slide 5: Q1 FY23: Key Developments
Q1 FY23: Key Developments Global Demand continues to witness cutback. Demand in India remained stable YoY while showing signs of improvement QoQ Strong YoY growth reported in EBITDA/MT on the back of favorable product mix and leveraging on emerging opportunities. Robust risk management system ensure
Slide 6: Q1FY23 Consolidated Highlights – Highest ever Quarterly PAT
Q1FY23 Consolidated Highlights – Highest ever Quarterly PAT Total Revenue^ EBITDA PAT +39% +29% +31% Rs. In Crores 1,157 146 146 98 100 1,054 113 77 831 Q1 FY22 Q4 FY22 Q1 FY23 Q1 FY22 Q4 FY22 Q1 FY23 Q1 FY22 Q4 FY22 Q1 FY23 ^Includes other Income 5
Slide 7: Volume: Q1FY23 Highlights
Volume: Q1FY23 Highlights Performance Surfactants Specialty Care Products Total Volume 38,778 21,087 22,101 59,864 57,512 35,410 35,443 19,829 55,272 Volume Highlights Q1 FY22 Q4 FY22 Q1 FY23 Q1 FY22 Q4 FY22 Q1 FY23 Q1 FY22 Q4 FY22 Q1 FY23 India Market grew YoY by 2.6% Africa Middle East Turkey de-g
Slide 8: Q1FY23 Consolidated Revenue Highlights
Q1FY23 Consolidated Highlights Performance Surfactants Specialty Care Products Total Revenue^ Rs. In Crores 700 443 457 1,157 1,054 611 516 831 314 Revenue Highlights Q1 FY22 Q4 FY22 Q1 FY23 Q1 FY22 Q4 FY22 Q1 FY23 Q1 FY22 Q4 FY22 Q1 FY23 ^Includes other Income 7
Slide 9: Consolidated Profit & Loss Statement
Consolidated Profit & Loss Statement Particulars (Rs. In Crores) Q1FY23 Q1FY22 Y-o-Y Q4FY22 Q-o-Q Net Revenue from Operations 1,158.9 826.4 40.2% 1,052.9 10.1% Other Income -2.0 4.5 1.2 Fatty Alcohol prices in Total Revenue 1,156.9 830.9 39.2% 1,054.1 9.7% this Quarter increased Cost of Material Con
Slide 10: Standalone Profit & Loss Statement
Standalone Profit & Loss Statement Particulars (Rs. In Crores) Q1FY23 Q1FY22 Y-o-Y Q4FY22 Q-o-Q Net Revenue from Operations 856.3 554.8 54.3% 792.7 8.0% Other Income -4.0 5.8 -17.6 Total Revenue 852.3 560.6 52.0% 775.2 10.0% Cost of Material Consumed 644.8 402.3 570.6 Employee's Benefits Expense 34.
Slide 11: Business Overview
Business Overview 10
Slide 12: Truly Indian MNC…
Truly Indian MNC… Leading manufacturer of Product applications across Preferred supplier to leading Ingredient for Home & Mass, Mass-tige & Prestige Multinational, Regional & Brand Custodian Personal care Industry (HPC) range of Customers Local FMCG Brands Globally Recognized Integrated Across Full
Slide 13: …Vertically Integrated in HPC Industry
…Vertically Integrated in HPC Industry 7 Strategically Located 220+ Product Grades Extensive R&D Capabilities Indigenous Facilities with Inhouse Project 74 Members, R&D Centre, Pilot Intellectual property Execution Capabilities Plant, Product Application 84 Approved; 15 Applied 5 in India, 1 in Egyp
Slide 14: We grow faster than HPC FMCGs
We grow faster than HPC FMCGs India’s Largest Manufacturer of Oleochemical based Surfactants and Speciality Care Products for Home Care and Personal Care Industries (HPC) Consumer to Innovation & Chemistry Technology 01 03 05 Global Supplier 02 Multiple 04 High Growth to Global Brands Products acros
Slide 15: Our growth trajectory over Three Decades
Our growth trajectory over Three Decades Revenue (Rs in Crores) 1986: Incorporation of Company 1994: New plant set up at Tarapur 2004: setting up of EOU at Taloja 2011: Commissioning of Egypt and Jhagadia Plants 1984: New Plant at Tarapur for 1995: Acquisition of Galaxy Chemicals 2009: 2014: Purchas
Slide 16: Our focus is Personal & Home Care Segment
Our focus is Personal & Home Care Segment Hair Care Oral Care Home Care Shampoos Toothpaste Carpet Cleaner Conditioners Tooth powder Toilet Cleaner Colorants Mouth wash Detergents Styling Gels Fabric Cleaner Glass / Floor Cleaner Mass Mass -tige Prestige Serving needs across Consumer Segments Mass M
Slide 17: …with over 220+ Product Offerings
… with over 220+ Product Offerings Anionic Surfactants FAES, FAS, LABSA ✓ Foam and Dirt removal properties Performance Surfactants Non-Ionics Surfactants Ethoxylates ✓ Cosmetics and Personal care products as emulsifiers and solubilisers Betaines ✓ Dermatological properties to reduces skin irritation
Slide 18: Our Business Segments…
Our Business Segments… Performance Surfactants Speciality Care Products “Substantive Raw Material in Customer’s End-products” “Unique Functionality to Customer’s End-products” About Product ▪ Products are functional in nature where End- ▪ Niche & Premium products consumer require foaming & cleansing
Slide 19: Our Global Footprints
Our Global Footprints USA: TRI-K Industries-100% owned Manufacturing ✓ Netherlands R&D ✓ USA # Plants 1 TRI K Industries Global # Employees 67 Headquarters Egypt Galaxy Marketing office ✓ Chemicals (Egypt) S.A.E. India Egypt:100% owned* Q1FY23: Revenue Breakup Manufacturing ✓ India: Parent Entity R&
Slide 20: “Consumer to Chemistry”: Creation of Products
“Consumer to Chemistry”: Creation of Products 84 approved Patents and 15 applied Idea Stage INDIA USA GLOBALLY EUROPE ROW Applied Feasibility Stage 18 18 5 9 15 3 Patent New product 84 Patents 15 Patent grades, Granted in Capability Stage since 2000 applied process, India in FY22 efficiencies Produc
Slide 21: …with World-class R&D facilities
…with World-class R&D facilities Collaborative product development with Customers which helps Customers in choosing “Right Technology with Right Application” Inhouse R&D Team of 74 professionals comprising of doctorates, chemists and engineers Well-Equipped R&D Centre, Pilot Plant at Tarapur, Mahara
Slide 22: State-of-the-art Manufacturing Facilities
State-of-the-art Manufacturing Facilities Location No. of Units Installed Capacity Details ✓ 1 pilot plant for scale up and commercialisation of new Tarapur, Maharashtra 3 34,747 MTPA products rolling out from R&D activities ✓ Easy access to the Jawaharlal Nehru Port Trust, Navi Mumbai ✓ One of the
Slide 23: 1,450+ Clients across 80+ Countries
1,450+ Clients across 80+ Countries Procter & Colgate Reckitt Unilever Dabur Gamble Palmolive Benckiser Himalaya Henkel Emami Loreal CavinKare & Many more… Long term strategic relationship with all of the top 10 customers Strict qualifications and extensive collaboration with customers for end-produ
Slide 24: Awards & Certifications: Won in the Past Decade
Awards & Certifications: Won in the Past Decade “Best Supply Partner”, 2015 2018 “Winning through Award of Global Performance” for Long Standing Partner Award Recognition from Innovation” at the Partner L’Oréal Asia Pacific 2012 Best Reliable Partner Award to Win, 2012 Awards “Certificate of Appreci
Slide 25: Accolades Received in FY22
Accolades Received in FY22 24
Slide 26: Certified as 1.4X water positive
Galaxy Surfactants Ltd. has been certified as 1.4X water positive Because businesses thrive only when communities thrive 25
Slide 27: Achieved the status of being a water positive company
Achieved the status of being a water positive company Commemorating World Water Day, 2022, Galaxy Surfactants emerged as among the few Indian companies to achieve water positive certification and become 1.4X water positive The certification was granted by DNV Business Assurance India Private Limited
Slide 28: Management Team on Board
Management Team on Board Mr. Melarkode G. Parameswaran Chairman •Appointed as Chairman w.e.f. 20th April, 2022 •Associated with Company since 2005 •Chemical Engineer from IIT Madras; PGDM from IIM Calcutta; PhD from Mumbai University Mr. Unnathan Shekhar Mr. Natarajan K. Krishnan Promoter, Managing
Slide 29: Along with Guidance of Senior Board Members
Along with Guidance of Senior Board Members Mr. Gopalkrishnan Ramakrishnan Mr. Shashikant R. Shanbhag Promoter, Non-Executive Director Promoter, Non-Executive Director •Associated with Company since 1986 •Associated with Company since •Qualified CA and CS 1986 •Qualified CA Mr. Subodh S. Nadkarni Ms
Slide 30: The 4 Cs: Our Core Strength
The 4 Cs: Our Core Strength CHARACTER COMPETITIVENESS Transparent & Open, Respect & Adhering to Global Quality Value People, Dreaming & Standards, Supplying Envisioning , Conducting Customers Globally, Agile & Business with Integrity Nimble Footedness COMPETENCE COMFORT Respecting our Commitments, T
Slide 31: Growth Strategy
Growth Strategy 30
Slide 32: Personal & Home Care: High Entry Barrier Businesses
Personal & Home Care: High Entry Barrier Businesses Process Product Customers Chemical Engineering & inhouse project Wide spectrum of ingredients for Customer Centric Integrated solutions for execution Consumer categories / needs the HPC FMCG Industry Meeting pre-qualifications of the Product Qualit
Slide 33: Our Growth Vision
Our Growth Vision Sales R&D and Customer Market Strategy Profitability Optimization Innovation Wallet share Improve Financial Increased focus on Continue to focus Increase Wallet Mutually Performance high margin on R&D and Share with Existing Complimentary through Sales products in both Product Inno
Slide 34: Financial Performance
Financial Performance 33
Slide 35: Managing Volatility in Raw Material Prices and Currency...
Managing Volatility in Raw Material Prices and Currency... Fatty Alcohol Prices (USD / MT) INR / USD Prices LA Price USDINR 3,000 80.00 2,600 77.00 2,200 74.00 1,800 71.00 1,400 68.00 1,000 65.00 LA Price USDINR … through Robust Risk Management Practices Source: Market Prices – ICIS – LOR Source: RB
Slide 36: Our Performance Highlights
Our Performance Highlights Revenue^ (Rs. In Crs) EBITDA^ (Rs. In Crs) PAT (Rs. In Crs) +13% 3,698 +10% 460 +17% 302 413 263 358 375 230 2,768 2,602 2,795 2,444 282 298 191 2,172 1,807 238 148 158 101 FY16 FY17* FY18* FY19* FY20* FY21* FY22* FY16 FY17* FY18* FY19* FY20* FY21* FY22* FY16 FY17* FY18* F
Slide 37: Our Financial Strength
Our Financial Strength Debt/ Equity (x) Return on Equity (%) 0.9 28.8% 25.2% 24.4% 23.9% 24.7% 25.5% 0.7 18.3% 0.5 0.3 0.4 0.2 0.2 FY16 FY17* FY18* FY19* FY20* FY21* FY22* FY16 FY17* FY18* FY19* FY20* FY21* FY22* Cash Flow from Operating Activities (Rs in Crs) Return on Capital Employed (%) 365 26.8
Slide 38: Thank You
Thank Company : Investor Relations Advisors : You CIN No: L39877MH1986PLC039877 CIN - U74140MH2010PTC204285 Mr. Paritosh Srivastava Mr. Rahul Agarwal / Ms. Khushbu Shah Email: Paritosh.Srivastava@galaxysurfactants.com rahul.agarwal@sgapl.net / khushbu.shah@sgapl.net www.galaxysurfactants.com +91 982