Galaxy Surfactants Ltd. · NSE:GALAXYSURF
Galaxy Surfactants — H1 FY23 Earnings Presentation
48 slides from Galaxy Surfactants's earnings presentation, Nov 9, 2022
Slide 1: Exchange filing cover letter
November 9, 2022 National Stock Exchange of India Ltd., BSE Limited, Exchange Plaza, C-1, Block G, Listing Department, Bandra Kurla Complex, Phiroze Jeejeebhoy Towers, Bandra (East) Dalal Street, Mumbai – 400 051 Mumbai- 400001 Scrip Symbol: GALAXYSURF Scrip Code: 540935 Sub: Investor presentation o
Slide 2: Galaxy Surfactants Limited Investor Presentation - November 2022
Galaxy Surfactants Limited Investor Presentation - November 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 se
Slide 4: Q2 & H1 FY23 Performance Highlights
Q2 & H1 FY23 Performance Highlights 3
Slide 5: H1FY23: Key Developments
H1FY23: Key Developments Supply side situation improves. Significant decline in freight rates, raw material prices, and improved availability vis-à-vis H1FY22 aids performance Inflationary pressures adversely impact demand for mass and masstige categories in AMET. Slowdown in Europe impacts specialt
Slide 6: Q2 & H1 FY23 Consolidated Highlights
Q2 & H1 FY23 Consolidated Highlights Total Revenue^ EBITDA PAT +40% +75% +100% Rs. In Crores 1,233 133 84 882 76 42 Q2FY22 Q2FY23 Q2FY22 Q2FY23 Q2FY22 Q2FY23 Total Revenue^ EBITDA PAT +39% +48% +55% 2,390 279 184 1,713 189 119 H1FY22 H1FY23 H1FY22 H1FY23 H1FY22 H1FY23 ^Includes other Income 5
Slide 7: Volume: Q2FY23 Highlights
Volume: Q2FY23 Highlights Performance Surfactants Specialty Care Products Total Volume 38,023 38,902 20,791 20,381 58,814 59,283 Volume Highlights Q2FY22 Q2FY23 Q2FY22 Q2FY23 Q2FY22 Q2FY23 India Market grew YoY by 8.5% Africa Middle East Turkey de-grew YoY by 16.8% Rest of the World grew YoY by 13.6
Slide 8: Volume: H1FY23 Highlights
Volume: H1FY23 Highlights Performance Surfactants Specialty Care Products Total Volume 76,801 74,345 41,878 40,210 1,18,679 1,14,555 Volume Highlights H1FY22 H1FY23 H1FY22 H1FY23 H1FY22 H1FY23 India Market grew YoY by 5.5% Africa Middle East Turkey de-grew YoY by 19.0% Rest of the World grew YoY by
Slide 9: Revenue Highlights
Q2 &H1 FY23 Consolidated Highlights Performance Surfactants Specialty Care Products Total Revenue^ +39% +41% +40% Rs. In Crores 777 456 1,233 559 323 882 Revenue Highlights Q2FY22 Q2FY23 Q2FY22 Q2FY23 Q2FY22 Q2FY23 Performance Surfactants Specialty Care Products Total Revenue^ +38% +43% +40% 1,482 9
Slide 10: Consolidated Profit & Loss Statement
Consolidated Profit & Loss Statement Particulars (Rs. In Crores) Q2FY23 Q2FY22 Y-o-Y Q1FY23 Q-o-Q H1FY23 H1FY22 Y-o-Y Net Revenue from Operations 1,231.6 877.3 40.4% 1,158.9 6.3% 2,390.5 1,703.7 40.3% Other Income 1.1 5.0 -2.0 -0.9 9.6 Fatty Alcohol prices in Total Revenue 1,232.7 882.3 39.7% 1,156.
Slide 11: Consolidated Balance Sheet
Consolidated Balance Sheet Particulars (Rs. In Crores) Sep'22 Mar’22 Particulars (Rs. In Crores) Sep'22 Mar’22 ASSETS EQUITY AND LIABILITIES Property, Plant and Equipment 714.0 609.2 EQUITY Right-of-use assets 143.9 143.0 Equity Share Capital 35.5 35.5 Capital work-in-progress 165.9 205.5 Other Equi
Slide 12: Consolidated Cash Flow
Consolidated Cash Flow Particulars (Rs. In Crores) Sep'22 Sep'21 Cash Flow From Operating Activities : Profit After Tax 184.2 118.8 Operating Profit before working Capital changes 275.5 183.5 Net cash flows generated from/(used) in Operating Activities (A) 112.0 -25.1 Net cash flows generated from/(
Slide 13: Standalone Profit & Loss Statement
Standalone Profit & Loss Statement Particulars (Rs. In Crores) Q2FY23 Q2FY22 Y-o-Y Q1FY23 Q-o-Q H1FY23 H1FY22 Y-o-Y Net Revenue from Operations 864.8 624.7 38.5% 856.3 1.0% 1,721.1 1,179.5 45.9% Other Income -1.9 5.7 -4.0 -5.9 11.5 Total Revenue 862.9 630.3 36.9% 852.3 1.2% 1,715.2 1,190.9 44.0% Cos
Slide 14: Standalone Balance Sheet
Standalone Balance Sheet Particulars (Rs. In Crores) Sep'22 Mar’22 Particulars (Rs. In Crores) Sep'22 Mar’22 ASSETS EQUITY AND LIABILITIES Property, Plant and Equipment 461.5 383.8 EQUITY Right-of-use assets 98.4 98.5 Equity Share Capital 35.5 35.5 Capital work-in-progress 130.3 178.2 Other Equity 1
Slide 15: Standalone Cash Flow
Standalone Cash Flow Particulars (Rs. In Crores) Sep'22 Sep'21 Cash Flow From Operating Activities : Profit After Tax 92.0 66.8 Operating Profit before working Capital changes 158.3 107.8 Net cash flows generated from/(used) in Operating Activities (A) 103.8 18.7 Net cash flows generated from/(used)
Slide 16: Business Overview
Business Overview 15
Slide 17: Truly Indian MNC…
Truly Indian MNC… Leading manufacturer of Product applications across Preferred supplier to leading Ingredient for Home & Mass, Masstige & Prestige Multinational, Regional & Brand Custodian Personal care Industry (HPC) range of Customers Local FMCG Brands Globally Recognized Integrated Across Full A
Slide 18: …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; 17 Applied 5 in India, 1 in Egyp
Slide 19: 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 20: 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 21: 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 22: Consumer Benefits: 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 23: 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 24: 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* H1FY23: Revenue Breakup Manufacturing ✓ India: Parent Entity R&
Slide 25: "Consumer to Chemistry": Creation of Products
“Consumer to Chemistry”: Creation of Products 84 approved Patents and 17 applied Idea Stage INDIA USA GLOBALLY EUROPE ROW Applied Feasibility Stage 18 18 5 9 17 3 Patent New product 84 Patents 17 Patent grades, Granted in Capability Stage since 2000 applied process, India in FY22 efficiencies Produc
Slide 26: …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 27: 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 28: 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 29: 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 30: Accolades Received in FY22
Accolades Received in FY22 29
Slide 31: ESG Initiatives
ESG Initiatives 30
Slide 32: Environment
Environment Water Stewardship • Ensuring the manufacturing units in India are Zero Liquid Discharge Units since 2017 • Aim to achieve ZLD at our Egypt location as well • Multiple water conservation projects like recycling, condensate recovery, steam recovery and have even incorporated several water
Slide 33: Galaxy Surfactants certified as 1.4X water positive
Galaxy Surfactants Ltd. has been certified as 1.4X water positive Because businesses thrive only when communities thrive 32
Slide 34: 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 35: Social
Social Employee Safety, Fair Labour Women Health & Well being Practices Empowerment • Implemented ISO 45001:2018 Occupational Health and • Laid down employee code of conduct • Set-up of forums for mentoring women employees Safety management system at various manufacturing (COC) applicable to all emp
Slide 36: Corporate Governance
Corporate Governance Ethics Risk Grievances Disclosures & Governance & Integrity Management Transparency • Board of directors • Code of conduct laid down • Formulated and • Employee welfare council • A dedicated ‘Investor constituted in compliance employee code of conduct implemented policy on risk
Slide 37: Corporate Governance: Governance Structure
Corporate Governance Governance Structure Shareholders Board of Directors Nomination & Corporate Social Stakeholder’s Risk Management Audit Committee Remuneration Responsibility Relationship Committee Committee Committee Committee Management Team Organization 36
Slide 38: Management Team on Board
Management Team on Board Mr. Melarkode G. Parameswaran Mr. Unnathan Shekhar Chairman Promoter, Managing Director •Appointed as Chairman w.e.f. 20th April, 2022 •Associated with Company since 1986 •Associated with Company since 2005 •Chemical Engineer, PGDM from IIM, Calcutta •Chemical Engineer from
Slide 39: 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 40: 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 41: Growth Strategy
Growth Strategy 40
Slide 42: 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 43: 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 44: Financial Performance
Financial Performance 43
Slide 45: 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 84.00 2,600 80.00 2,200 76.00 1,800 72.00 1,400 1,000 68.00 LA Price USDINR … through Robust Risk Management Practices Source: Market Prices – ICIS – LOR Source: RBI 44
Slide 46: 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 47: 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 48: Thank You
Thank Company : Investor Relations Advisors : You CIN No: L39877MH1986PLC039877 CIN - U74140MH2010PTC204285 Mr. Paritosh Srivastava Mr. Rahul Agarwal / Mr. Mandar Chavan Email: Paritosh.Srivastava@galaxysurfactants.com rahul.agarwal@sgapl.net / mandar.chavan@sgapl.net www.galaxysurfactants.com +91 9