Galaxy Surfactants Ltd. · NSE:GALAXYSURF
Galaxy Surfactants — Q1 FY2020 Earnings Presentation
47 slides from Galaxy Surfactants's earnings presentation, Aug 14, 2019
Slide 1: Cover letter to stock exchanges
August 14, 2019 National Stock Exchange of India Ltd., 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: Investors Release: Q1FY20 Consolidated Performance
Investors Release Galaxy Surfactants Limited Q1FY20 Consolidated Performance: • Total volume grew by 4.4% for Q1FY20 on YoY basis • Total Revenue (including other income) stood at Rs. 666 Cr lower by 7% on YoY basis on account of lower fatty alcohol prices which declined by 19% • EBITDA stood at Rs.
Slide 3: Management commentary and performance highlights
Investors Release Commenting on the performance Mr. U. Shekhar, Managing Director, Galaxy Surfactants Limited said “Q1 FY 2019-20 marked yet another quarter of outperformance by our Specialty Care segment which grew by 11.5%. Also, the RoW Markets saw a good growth at 26.5% whereas Indian market was
Slide 4: Investors Release: volumes, EBITDA and PAT
Investors Release • Total volumes stood at 54,767 MT for Q1FY20 as against 52,477 MT in Q1FY19, up by 4.4% YoY o Volume growth has been driven by all three MNC, Regional and Local players o ROW markets grew at 26.5%, India market declined by 3.7% on YoY basis o AMET market lower by 2% due to slower
Slide 5: About Galaxy Surfactants Limited and Safe Harbor
Investors Release About Galaxy Surfactants Limited: Incorporated in 1986, Galaxy Surfactants Ltd is leading manufacturers of Performance Surfactants and Specialty Care products with over 200 product grades. These products are used in consumer-centric Home and Personal care products like hair care, o
Slide 6: Galaxy Surfactants Limited
Galaxy Surfactants Limited Investor Presentation - August 2019
Slide 7: 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 8: Q1FY20 Performance Highlights
Q1FY20 Performance Highlights 3
Slide 9: Q1FY20: Key Developments
Q1FY20: Key Developments The ROW markets outperformed on the back of a strong performance registered by the specialty care products segment AMET performance remains muted, owing to continued slowdown in Egypt Domestic (India) Business saw a decline due to broad-based slowdown. Expected to improve in
Slide 10: Volume: Q1FY20 Highlights (YoY)
Volume: Q1FY20 Highlights (YoY) Performance Surfactants Specialty Care Products Total Volume +0.3% +11.5% +4.4% 33,654 33,771 20,996 52,477 54,767 18,823 Volume Highlights Q1FY19 Q1FY20 Q1FY19 Q1FY20 Q1FY19 Q1FY20 India Market de-grew -3.7% Africa Middle East Turkey de-grew by -2.0% Rest of the Worl
Slide 11: Revenue Highlights: Q1FY20 (YoY)
Q1FY20 Highlights (YoY) Performance Surfactants Specialty Care Products Total Revenue^ -17% +12% -7% 479 266 714 666 400 237 Revenue Highlights Q1FY19 Q1FY20 Q1FY19 Q1FY20 Q1FY19 Q1FY20 EBITDA^ PAT +12% +15% 97 53 87 46 Rs. In Crores Q1FY19 Q1FY20 Q1FY19 Q1FY20 As per Ind AS ^Includes other Income 6
Slide 12: Q1FY20 Consolidated Profit & Loss Statement
Q1FY20 Consolidated Profit & Loss Statement Particulars (Rs in Cr) Q1FY20 Q1FY19 Y-o-Y Q4FY19 Q-o-Q FY19 ▪ Decline in revenue is Net Revenue from Operations 665.02 716.2 -7.1% 682.0 -2.5% 2,763.0 primarily due to declining Other Income 1.3 -1.7 3.5 4.7 fatty alcohol prices. The same fell from an avg
Slide 13: Q1FY20 Standalone Profit & Loss Statement
Q1FY20 Standalone Profit & Loss Statement Particulars (Rs in Cr) Q1FY20 Q1FY19 Y-o-Y Q4FY19 Q-o-Q FY19 Net Revenue from Operations 470.7 516.9 -8.9% 492.3 -4.4% 1,996.4 Other Income -1.1 8.4 3.8 35.9 Total Revenue 469.6 525.2 -10.6% 496.0 -5.3% 2,032.3 Cost of Material Consumed 317.4 385.6 341.6 1,4
Slide 14: Business Overview
Business Overview 9
Slide 15: 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 16: Vertically Integrated in HPC Industry
…Vertically Integrated in HPC Industry 7 Strategically Located 200+ Product Grades Extensive R&D Capabilities Indigenous Facilities with Inhouse Project 74 Members, R&D Centre, Pilot Intellectual property Execution Capabilities Plant, Product Application 62 Approved; 23 Applied 5 in India, 1 in Egyp
Slide 17: 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 18: 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 19: 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 20: Product Offerings and Consumer Benefits
… with over 200 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 21: 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 22: 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 69 Headquarters Egypt Galaxy Marketing office ✓ Chemicals (Egypt) S.A.E. India Egypt:100% owned* Q1FY20: Revenue Breakup Manufacturing ✓ India: Par
Slide 23: Consumer to Chemistry: Creation of Products
“Consumer to Chemistry”: Creation of Products 62 approved Patents and 23 applied Idea Stage GLOBALLY INDIA USA EUROPE ROW Applied Feasibility Stage 11 14 4 6 23 R&D spend New product 62 Patents 23 Patent of INR 60+ grades, since 2002 application Capability Stage pending Cr in 17-19 process, efficien
Slide 24: 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 25: 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 26: 1750+ Clients across 75+ Countries
1750+ Clients across 75+ Countries & Many more… Long term strategic relationship with all of the top 10 customers Strict qualifications and extensive collaboration with customers for end-product development Of basket of 200+ products, FY19: Revenue Contribution All FMCG Protocols Through Innovation
Slide 27: Awards & Certifications
Awards & Certifications: True recognition of Capabilities “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
Slide 28: Accolades and Certifications Received during FY19
Accolades Received during FY19 Recognition from Clients ““Outstanding Contribution to “Emerging Business Partner PARTNER TO WIN” by Unilever - 2018” awarded by Abbott during ACI-2019 conference at Samanvay 2018 event Awards received ICIS Innovation Award 2018 Innovation Award CHEMEXCIL Best Process
Slide 29: Management Team on Board
Management Team on Board Mr. Unnathan Shekhar Promoter, Managing Director •Associated with Company since 1986 •Chemical Engineer, PGDM from IIM, Calcutta Mr. Natarajan K. Krishnan Mr. Kasargod Ganesh Kamath Executive Director, Chief Operating Officer Executive Director (Finance), Chief Financial Off
Slide 30: Along with Guidance of Senior Board Members
Along with Guidance of Senior Board Members Mr. Shekhar Ravindranath Warriar Chairman, Non-Executive Independent Director •Associated with Company since 2007 •More than 30 years with Unilever, India in various capacities Mr. Subodh S. Nadkarni Mr. Gopalkrishnan Ramakrishnan Mr. Shashikant R. Shanbha
Slide 31: 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 32: High Growth Industry
High Growth Industry 27
Slide 33: Personal & Home Care: Stable & Non-Cyclical Industry
Personal & Home Care: Stable & Non-Cyclical Industry Personal Care and Household Personal Care and Household Cosmetics Market Cleaning Market Cosmetics Market Cleaning Market 2015 215 43 11 2 2024 358 58 23 4 5.8% 3.3% 7.9% 7.2% CAGR CAGR CAGR CAGR Galaxy has a strong presence in High Growth Markets
Slide 34: Within Surfactants – Personal Care is fastest Growing Segment
Within Surfactants – Personal Care is fastest Growing Segment Surfactants Personal Care Surfactants Personal Care Market Surfactants Market Market Surfactants Market 2015 30.65 6.13 1.34 0.24 2024 45.16 10.27 2.28 0.47 4.4% 5.9% 6.1% 7.8% CAGR CAGR CAGR CAGR All figures in USD billion Source: Compan
Slide 35: Within Specialty – Personal Care Ingredients has largest Growth Potential
Within Specialty – Personal Care Ingredients has largest Growth Potential Global Personal Care Ingredients: USD 14-18 billion UV Absorbers ▪ Global sun care (of which 80% is sun protection) is a USD 11 bn Sunscreen market and is estimated to touch USD 12.3 bn by 2021 35% 40% ▪ Preservatives blends a
Slide 36: Growth Strategy
Growth Strategy 31
Slide 37: 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 38: 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 39: Financial Performance
Financial Performance 34
Slide 40: 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 1,600 75 1,500 73 1,400 71 1,300 69 1,200 67 1,100 65 Jun-18 Oct-18 Jun-19 Jul-18 Aug-18 Sep-18 Nov-18 Jan-19 Mar-19 Apr-18 May-18 Feb-19 Dec-18 Apr-19 May-19 Jun-18 Oct-18 Jun
Slide 41: Volume: FY19 Highlights (YoY)
Volume: FY19 Highlights (YoY) Performance Surfactants Specialty Care Products Total Volume +4% +19% +9% 130,596 135,337 79,374 214,711 197,429 66,833 Volume Highlights FY18 FY19 FY18 FY19 FY18 FY19 India Growth 12% Africa Middle East Turkey de-grew by -5% Rest of the World grew by 29% AMET Markets d
Slide 42: Revenue Highlights: FY19 (YoY)
FY19 Highlights (YoY) Performance Surfactants Specialty Care Products Total Revenue^ +8% +24% +13% 1,613 1,741 1,027 2,768 831 2,444 Revenue Highlights FY18 FY19 FY18 FY19 FY18 FY19 EBITDA^ PAT +20% +21% 358 191 298 158 Rs. In Crores FY18 FY19 FY18 FY19 As per Ind AS ^Includes other Income 37
Slide 43: Our Performance Highlights
Our Performance Highlights Revenue^ (Rs. In Crs) EBITDA^ (Rs. In Crs) PAT (Rs. In Crs) +10% 2,768 +17% 358 +29% 191 2,444 298 158 2,172 282 148 1,875 1,807 238 192 101 68 FY15 FY16 FY17* FY18* FY19* FY15 FY16 FY17* FY18* FY19* FY15 FY16 FY17* FY18* FY19* EBITDA per tonne Total Volume Growth +7% +9%
Slide 44: Our Balance Sheet Strength
Our Balance Sheet Strength Debt/ Equity (x) Return on Equity (%) 1.1 28.8% 0.9 25.2% 24.4% 23.9% 20.4% 0.7 0.5 0.3 FY15 FY16 FY17* FY18* FY19* FY15 FY16 FY17* FY18* FY19* Cash Flow from Operating Activities Return on Capital Employed (%) (Rs in cr) 283 26.8% 25.2% 23.9% 22.6% 170 18.6% 144 111 41 FY
Slide 45: Consolidated Balance Sheet
Consolidated Balance Sheet Particulars (Rs. In Crores) March’19 March’18 Particulars (Rs. In Crores) March’19 March’18 ASSETS EQUITY AND LIABILITIES Property, Plant and Equipment 511.2 439.9 EQUITY Capital work-in-progress 82.6 24.9 Equity Share Capital 35.5 35.5 Goodwill 2.5 2.4 Other Equity 841.3
Slide 46: Standalone Balance Sheet
Standalone Balance Sheet Particulars (Rs. In Crores) March’19 March’18 Particulars (Rs. In Crores) March’19 March’18 ASSETS EQUITY AND LIABILITIES Property, Plant and Equipment 354.2 277.9 EQUITY Capital work-in-progress 40.2 18.5 Equity Share Capital 35.5 35.5 Goodwill 0 0 Other Equity 747.1 630.4
Slide 47: Thank You
Thank Company : Investor Relations Advisors : You CIN No: L39877MH1986PLC039877 CIN - U74140MH2010PTC204285 Mr. Paritosh Srivastava Ms. Neha Shroff / Mr. Shrikant Sangani Email: Paritosh.Srivastava@galaxysurfactants.com neha.shroff@sgapl.net / shrikant.sangani@sgapl.net www.galaxysurfactants.com +91