Galaxy Surfactants Ltd. · NSE:GALAXYSURF
Galaxy Surfactants — Q2 FY2022 Earnings Presentation
47 slides from Galaxy Surfactants's earnings presentation, Nov 10, 2021
Slide 1: Cover letter to stock exchanges
November 10, 2021 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: 5
Slide 2: Galaxy Surfactants Limited Investor Presentation - November 2021
Galaxy Surfactants Limited Investor Presentation - November 2021
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: Q2FY22 Performance Highlights
Q2FY22 Performance Highlights 3
Slide 5: Q2FY22: Key Developments
Q2FY22: Key Developments Supply Chain Constraints and delays in the availability of critical feedstocks impact Volumes and EBITDA. Adverse impact of Rs. 20 Crores on EBITDA Across the board inflationary scenario combined with Supply Chain volatility (Month on Month rise in Freight Costs and Containe
Slide 6: Volume: Q2FY22 Highlights
Volume: Q2FY22 Highlights Performance Surfactants Specialty Care Products Total Volume 41,426 21,600 21,087 20,791 63,026 59,864 38,778 38,023 58,814 Volume Highlights Q2FY21 Q1FY22 Q2FY22 Q2FY21 Q1FY22 Q2FY22 Q2FY21 Q1FY22 Q2FY22 India Market grew YoY by 0.1% Africa Middle East Turkey de-grew YoY b
Slide 7: Volume: H1FY22 Highlights
Volume: H1FY22 Highlights Performance Surfactants Specialty Care Products Total Volume 77,823 76,801 41,878 1,14,919 1,18,679 37,096 Volume Highlights H1FY21 H1FY22 H1FY21 H1FY22 H1FY21 H1FY22 India Market grew by 13.8% Africa Middle East Turkey de-grew by 9.7% Rest of the World grew by 8.8% 6
Slide 8: Q2FY22 & H1FY22 Consolidated Highlights
Q2FY22 & H1FY22 Consolidated Highlights Performance Surfactants Specialty Care Products Total Revenue^ Rs. In Crores 559 314 323 831 882 516 279 445 723 Revenue Highlights Q2FY21 Q1FY22 Q2FY22 Q2FY21 Q1FY22 Q2FY22 Q2FY21 Q1FY22 Q2FY22 Performance Surfactants Specialty Care Products Total Revenue^ 1,
Slide 9: Consolidated Profit & Loss Statement
Consolidated Profit & Loss Statement Particulars (Rs. In Crores) Q2FY22 Q2FY21 Y-o-Y Q1FY22 Q-o-Q H1FY22 H1FY21 Y-o-Y FY21 Net Revenue from Operations 877.3 718.7 22.1% 826.4 6.2% 1,703.7 1,325.8 28.5% 2,784.1 Other Income 5.0 4.6 4.5 9.6 5.2 10.9 Fatty Alcohol prices in Total Revenue 882.3 723.3 22
Slide 10: Consolidated Balance Sheet
Consolidated Balance Sheet Particulars (Rs. In Crores) Sep’21 Mar’21 Particulars (Rs. In Crores) Sep’21 Mar’21 ASSETS EQUITY AND LIABILITIES Property, Plant and Equipment 576.7 591.7 EQUITY Right-of-use assets 143.1 111.9 Equity Share Capital 35.5 35.5 Capital work-in-progress 181.4 124.0 Other Equi
Slide 11: Consolidated Cash Flow
Consolidated Cash Flow Half Year ended Particulars (Rs. In Crores) Sep’21 Sep’20 Cash Flow From Operating Activities : Profit After Tax 118.8 138.2 Operating Profit before working Capital changes 183.5 213.8 Net cash flows generated from/(used) in Operating Activities (A) (25.1) 186.1 Net cash flows
Slide 12: Standalone Profit & Loss Statement
Standalone Profit & Loss Statement Particulars (Rs. In Crores) Q2FY22 Q2FY21 Y-o-Y Q1FY22 Q-o-Q H1FY22 H1FY21 Y-o-Y FY21 Net Revenue from Operations 624.7 489.6 27.6% 554.8 12.6% 1,179.5 849.3 38.9% 1,830.5 Other Income 5.7 -1.5 5.8 11.5 0.8 4.4 Total Revenue 630.3 488.1 29.1% 560.6 12.4% 1,190.9 85
Slide 13: Standalone Balance Sheet
Standalone Balance Sheet Particulars (Rs. In Crores) Sep’21 Mar’21 Particulars (Rs. In Crores) Sep’21 Mar’21 ASSETS EQUITY AND LIABILITIES Property, Plant and Equipment 348.6 358.5 EQUITY Right-of-use assets 97.4 99.2 Equity Share Capital 35.5 35.5 Capital work-in-progress 164.6 116.2 Other Equity 1
Slide 14: Standalone Cash Flow
Standalone Cash Flow Half Year ended Particulars (Rs. In Crores) Sep’21 Sep’20 Cash Flow From Operating Activities : Profit After Tax 66.8 92.0 Operating Profit before working Capital changes 107.8 149.1 Net cash flows generated from/(used) in Operating Activities (A) 18.7 133.8 Net cash flows gener
Slide 15: Business Overview
Business Overview 14
Slide 16: 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 17: …Vertically Integrated in HPC Industry
…Vertically Integrated in HPC Industry 7 Strategically Located 210+ Product Grades Extensive R&D Capabilities Indigenous Facilities with Inhouse Project 74 Members, R&D Centre, Pilot Intellectual property Execution Capabilities Plant, Product Application 80 Approved; 15 Applied 5 in India, 1 in Egyp
Slide 18: 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 19: Our growth trajectory over Three Decades
Our growth trajectory over Three Decades 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: Ethoxylates, Phenoxyethanol, Sunscre
Slide 20: 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 21: Consumer Benefits: over 210+ Product Offerings
… with over 210+ 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 22: 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 23: Our Global Footprints
Our Global Footprints USA: TRI-K Industries-100% owned Manufacturing ✓ Netherlands R&D ✓ USA # Plants 1 TRI K Turkey China Industries Global # Employees 70 Headquarters Egypt Galaxy Marketing office ✓ Chemicals (Egypt) S.A.E. India Egypt:100% owned* H1FY22: Revenue Breakup Manufacturing ✓ India: Par
Slide 24: “Consumer to Chemistry”: Creation of Products
“Consumer to Chemistry”: Creation of Products 80 approved Patents and 15 applied Idea Stage INDIA USA GLOBALLY EUROPE ROW Applied Feasibility Stage 17 16 5 9 15 15 Patent New product 80 Patents grades, since 2000 application Capability Stage pending process, efficiencies Products Added 2019-20 216 M
Slide 25: …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 26: 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 33,647 MTPA products rolling out from R&D activities ✓ Easy access to the Jawaharlal Nehru Port Trust, Navi Mumbai ✓ One of the
Slide 27: 1400+ Clients across 80+ Countries
1400+ 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-produc
Slide 28: 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 29: Accolades Received in H1FY22
Accolades Received in H1FY22 28
Slide 30: Accolades Received during FY21
Accolades Received during FY21 Certificate of Appreciation For valuable Company won Gold medal for their EcoVadis CSR Company received EFfCI GMP certification for its manufacturing association as a Business Partner a during the rating facility located at Jaghadia Covid-19 crisis Received Green Compa
Slide 31: Management Team on Board
Management Team on Board Mr. Unnathan Shekhar Mr. Natarajan K. Krishnan Promoter, Managing Director Executive Director, Chief Operating Officer •Associated with Company since 1986 •Associated with Company since 1993 •Chemical Engineer, PGDM from IIM, Calcutta •CWA, Advanced Management Program from H
Slide 32: Along with Guidance of Senior Board Members
Along with Guidance of Senior Board Members Mr. Shekhar Ravindranath Warriar Mr. Gopalkrishnan Ramakrishnan Mr. Shashikant R. Shanbhag Chairman, Non-Executive Promoter, Non-Executive Director Promoter, Non-Executive Director Independent Director •Associated with Company since 1986 •Associated with C
Slide 33: 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 34: Growth Strategy
Growth Strategy 33
Slide 35: 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 36: 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 37: Financial Performance
Financial Performance 36
Slide 38: 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 2,200 77.00 2,000 75.00 1,800 73.00 1,600 71.00 1,400 69.00 1,200 67.00 1,000 65.00 LA Price USDINR … through Robust Risk Management Practices Source: Market Prices – ICIS – LO
Slide 39: Volume: FY21 Highlights (YoY)
Volume: FY21 Highlights (YoY) Performance Surfactants Specialty Care Products Total Volume +8.8% -0.9% +5.3% 1,56,153 80,716 80,011 2,24,237 2,36,164 1,43,521 Volume Highlights FY20 FY21 FY20 FY21 FY20 FY21 India Market grew by 11.2% Africa Middle East Turkey grew by 8.2% Rest of the World de-grew b
Slide 40: FY21 Highlights (YoY)
FY21 Highlights (YoY) Performance Surfactants Specialty Care Products Total Revenue^ +12.1% +0.2% +7.4% 1,778 1,015 1,017 2,602 2,795 1,587 Revenue Highlights FY20 FY21 FY20 FY21 FY20 FY21 EBITDA^ PAT +22.6% +31.1% 460 302 375 230 Rs. In Crores FY20 FY21 FY20 FY21 ^Includes other Income 39
Slide 41: Our Performance Highlights
Our Performance Highlights Revenue^ (Rs. In Crs) EBITDA^ (Rs. In Crs) PAT (Rs. In Crs) +7% 2,768 2,602 2,795 460 302 2,444 +16% 2,172 358 375 +28% 230 1,875 1,807 282 298 191 238 148 158 192 101 68 FY15 FY16 FY17* FY18* FY19* FY20* FY21* FY15 FY16 FY17* FY18* FY19* FY20* FY21* FY15 FY16 FY17* FY18*
Slide 42: Our Balance Sheet Strength
Our Balance Sheet Strength Debt/ Equity (x) Return on Equity (%) 1.1 28.8% 25.2% 24.4% 23.9% 24.7% 25.5% 0.9 20.4% 0.7 0.5 0.3 0.4 0.2 FY15 FY16 FY17* FY18* FY19* FY20* FY21* FY15 FY16 FY17* FY18* FY19* FY20* FY21* Cash Flow from Operating Activities (Rs in Crs) Return on Capital Employed (%) 365 26
Slide 43: Consolidated Balance Sheet
Consolidated Balance Sheet Particulars (Rs. In Crores) Mar’21 Mar'20 Particulars (Rs. In Crores) Mar’21 Mar'20 ASSETS EQUITY AND LIABILITIES Property, Plant and Equipment 591.7 623.9 EQUITY Right-of-use assets 111.9 115.7 Equity Share Capital 35.5 35.5 Capital work-in-progress 124.0 66.0 Other Equit
Slide 44: Consolidated Cash Flow
Consolidated Cash Flow Full Year ended Particulars (Rs. In Crores) Mar’21 Mar’20 Cash Flow From Operating Activities : Profit After Tax 302.1 230.4 Operating Profit before working Capital changes 454.2 373.0 Net cash flows generated from/(used) in Operating Activities (A) 365.1 315.9 Net cash flows
Slide 45: Standalone Balance Sheet
Standalone Balance Sheet Particulars (Rs. In Crores) Mar’21 Mar'20 Particulars (Rs. In Crores) Mar’21 Mar'20 ASSETS EQUITY AND LIABILITIES Property, Plant and Equipment 358.5 369.6 EQUITY Right-of-use assets 99.2 102.4 Equity Share Capital 35.5 35.5 Capital work-in-progress 116.2 61.4 Other Equity 9
Slide 46: Standalone Cash Flow
Standalone Cash Flow Full Year ended Particulars (Rs. In Crores) Mar’21 Mar’20 Cash Flow From Operating Activities : Profit After Tax 177.9 182.2 Operating Profit before working Capital changes 296.5 284.0 Net cash flows generated from/(used) in Operating Activities (A) 183.7 212.5 Net cash flows ge
Slide 47: Thank You
Thank Company : Investor Relations Advisors : You CIN No: L39877MH1986PLC039877 CIN - U74140MH2010PTC204285 Mr. Paritosh Srivastava Mr. Rahul Agarwal / Mr. Vijay Goel Email: Paritosh.Srivastava@galaxysurfactants.com rahul.agarwal@sgapl.net / vijay.goel@sgapl.net www.galaxysurfactants.com +91 98214 3