Galaxy Surfactants Ltd. · NSE:GALAXYSURF
Galaxy Surfactants — Q4 FY2022 Earnings Presentation
42 slides from Galaxy Surfactants's earnings presentation, May 18, 2022
Slide 1: Exchange filing cover letter
May 18, 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: 540935
Slide 2: Galaxy Surfactants Limited Investor Presentation - May 2022
Galaxy Surfactants Limited Investor Presentation - May 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: Q4 & FY22 Performance Highlights
Q4 & FY22 Performance Highlights 3
Slide 5: Q4 & FY22: Key Developments
Q4 & FY22: Key Developments U Shaped recovery with a robust Q4 performance Better Mix, Realizations & Recoveries aid EBITDA/MT Demand cutbacks & downtrading in AMET adversely impacted Performance Surfactants Volumes Normalcy & opening up of developed markets aids growth of Specialty Care portfolio R
Slide 6: Volume: Q4FY22 Highlights
Volume: Q4FY22 Highlights Performance Surfactants Specialty Care Products Total Volume 41,712 21,295 21,044 22,101 63,007 36,983 58,027 57,512 35,410 Volume Highlights Q4 FY21 Q3 FY22 Q4 FY22 Q4 FY21 Q3 FY22 Q4 FY22 Q4 FY21 Q3 FY22 Q4 FY22 India Market grew YoY by 3.3% Africa Middle East Turkey de-g
Slide 7: Volume: FY22 Highlights
Volume: FY22 Highlights Performance Surfactants Specialty Care Products Total Volume 1,56,153 1,49,195 85,023 2,36,164 2,34,218 80,011 Volume Highlights FY21 FY22 FY21 FY22 FY21 FY22 India Market grew by 9.4% Africa Middle East Turkey de-grew by 15.1% Rest of the World grew by 7.8% 6
Slide 8: Q4FY22 & FY22 Consolidated Highlights
Q4FY22 & FY22 Consolidated Highlights Performance Surfactants Specialty Care Products Total Revenue^ Rs. In Crores 570 611 443 1,054 496 361 931 786 290 Revenue Highlights Q4 FY21 Q3 FY22 Q4 FY22 Q4 FY21 Q3 FY22 Q4 FY22 Q4 FY21 Q3 FY22 Q4 FY22 Performance Surfactants Specialty Care Products Total Re
Slide 9: Consolidated Profit & Loss Statement
Consolidated Profit & Loss Statement Particulars (Rs. In Crores) Q4FY22 Q4FY21 Y-o-Y Q3FY22 Q-o-Q FY22 FY21 Y-o-Y Net Revenue from Operations 1,052.9 783.5 34% 929.1 13% 3,685.7 2,784.1 32% Other Income 1.2 2.6 1.8 12.5 10.9 Fatty Alcohol prices in Total Revenue 1,054.1 786.1 34% 930.9 13% 3,698.2 2
Slide 10: Consolidated Balance Sheet
Consolidated Balance Sheet Particulars (Rs. In Crores) Mar’22 Mar’21 Particulars (Rs. In Crores) Mar’22 Mar’21 ASSETS EQUITY AND LIABILITIES Property, Plant and Equipment 609.2 591.7 EQUITY Right-of-use assets 143.0 111.9 Equity Share Capital 35.5 35.5 Capital work-in-progress 205.5 124.0 Other Equi
Slide 11: Consolidated Cash Flow
Consolidated Cash Flow Full Year ended Particulars (Rs. In Crores) Mar’22 Mar’21 Cash Flow From Operating Activities : Profit After Tax 262.8 302.1 Operating Profit before working Capital changes 409.4 454.2 Net cash flows generated from/(used) in Operating Activities (A) 4.9 365.1 Net cash flows ge
Slide 12: Standalone Profit & Loss Statement
Standalone Profit & Loss Statement Particulars (Rs. In Crores) Q4FY22 Q4FY21 Y-o-Y Q3FY22 Q-o-Q FY22 FY21 Y-o-Y Net Revenue from Operations 792.7 526.8 50% 656.4 21% 2,628.6 1,830.5 44% Other Income -17.6 1.8 4.9 -1.2 4.4 Total Revenue 775.2 528.6 47% 661.3 17% 2,627.4 1,834.9 43% Cost of Material C
Slide 13: Standalone Balance Sheet
Standalone Balance Sheet Particulars (Rs. In Crores) Mar’22 Mar’21 Particulars (Rs. In Crores) Mar’22 Mar’21 ASSETS EQUITY AND LIABILITIES Property, Plant and Equipment 383.8 358.5 EQUITY Right-of-use assets 98.5 99.2 Equity Share Capital 35.5 35.5 Capital work-in-progress 178.2 116.2 Other Equity 1
Slide 14: Standalone Cash Flow
Standalone Cash Flow Full Year ended Particulars (Rs. In Crores) Mar’22 Mar’21 Cash Flow From Operating Activities : Profit After Tax 133.9 177.9 Operating Profit before working Capital changes 239.6 296.5 Net cash flows generated from/(used) in Operating Activities (A) 46.2 183.7 Net cash flows gen
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 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 81 Approved; 16 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 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 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: 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 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 Industries Global # Employees 67 Headquarters Egypt Galaxy Marketing office ✓ Chemicals (Egypt) S.A.E. India Egypt:100% owned* FY22: Revenue Breakup Manufacturing ✓ India: Parent Entity R&D
Slide 24: “Consumer to Chemistry”: Creation of Products
“Consumer to Chemistry”: Creation of Products 81 approved Patents and 16 applied Idea Stage INDIA USA GLOBALLY EUROPE ROW Applied Feasibility Stage 18 15 5 9 16 3 Patent New product 81 Patents 16 Patent grades, Granted in Capability Stage since 2000 applied process, India in FY22 efficiencies Produc
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: 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 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 FY22
Accolades Received in FY22 28
Slide 30: Certified as 1.4X water positive
Galaxy Surfactants Ltd. has been certified as 1.4X water positive Because businesses thrive only when communities thrive 29
Slide 31: 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 32: 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 33: 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 34: 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 35: Growth Strategy
Growth Strategy 34
Slide 36: 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 37: 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 38: Financial Performance
Financial Performance 37
Slide 39: 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 77.00 2,600 75.00 73.00 2,200 71.00 1,800 69.00 1,400 67.00 1,000 65.00 LA Price USDINR … through Robust Risk Management Practices Source: Market Prices – ICIS – LOR Sour
Slide 40: 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 41: 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 42: 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