Galaxy Surfactants Ltd. · NSE:GALAXYSURF
Galaxy Surfactants — Q1 FY22 Earnings Presentation
46 slides from Galaxy Surfactants's earnings presentation, Aug 10, 2021
Slide 1: Exchange filing cover letter
August 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: 540
Slide 2: Galaxy Surfactants Limited Investor Presentation - August 2021
Galaxy Surfactants Limited Investor Presentation - August 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: Q1FY22 Performance Highlights
Q1FY22 Performance Highlights 3
Slide 5: Q1FY22: Key Developments
Q1FY22: Key Developments Demand remains robust; Supply Side issues adversely impacted volumes. International Logistics situation continues to worsen Strong growth registered by Specialty Portfolio as developed economies open-up; Sequentially momentum sustains Performance Surfactants Momentum sustain
Slide 6: Volume: Q1FY22 Highlights
Volume: Q1FY22 Highlights Performance Surfactants Specialty Care Products Total Volume +6.5% +36.1% +15.4% 38,778 21,087 59,864 36,397 51,893 15,496 Volume Highlights Q1FY21 Q1FY22 Q1FY21 Q1FY22 Q1FY21 Q1FY22 India Market grew by 32.1% Africa Middle East Turkey de-grew by 5.8% Rest of the World grew
Slide 7: Revenue Highlights Q1FY22
Q1FY22 Highlights (YoY) Performance Surfactants Specialty Care Products Total Revenue^ +15.7% +93.8% +36.7% 516 314 831 446 608 162 Revenue Highlights Q1FY21 Q1FY22 Q1FY21 Q1FY22 Q1FY21 Q1FY22 EBITDA^ PAT +24.0% +36.0% 113 77 91 56 Rs. In Crores Q1FY21 Q1FY22 Q1FY21 Q1FY22 ^Includes other Income 6
Slide 8: Consolidated Profit & Loss Statement
Consolidated Profit & Loss Statement Particulars (Rs. In Crores) Q1FY22 Q1FY21 Y-o-Y Q4FY21 Q-o-Q FY21 Net Revenue from Operations 826.4 607.2 36.1% 783.5 5.5% 2,784.1 Other Income 4.5 0.7 2.6 10.9 Total Revenue 830.9 607.8 36.7% 786.1 5.7% 2,794.9 Fatty Alcohol prices Cost of Material Consumed 564.
Slide 9: Standalone Profit & Loss Statement
Standalone Profit & Loss Statement Particulars (Rs. In Crores) Q1FY22 Q1FY21 Y-o-Y Q4FY21 Q-o-Q FY21 Net Revenue from Operations 554.8 359.8 54.2% 526.8 5.3% 1,830.5 Other Income 5.8 2.3 1.8 4.4 Total Revenue 560.6 362.0 54.9% 528.6 6.0% 1,834.9 Cost of Material Consumed 402.3 238.9 352.9 1,208.1 Em
Slide 10: Business Overview
Business Overview 9
Slide 11: 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 12: …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 79 Approved; 14 Applied 5 in India, 1 in Egyp
Slide 13: 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 14: 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 15: 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 16: Consumer Benefits: 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 17: 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 18: 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* Q1FY22: Revenue Breakup Manufacturing ✓ India: Par
Slide 19: "Consumer to Chemistry": Creation of Products
“Consumer to Chemistry”: Creation of Products 79 approved Patents and 14 applied Idea Stage INDIA USA GLOBALLY EUROPE ROW Applied Feasibility Stage 16 16 5 9 14 14 Patent New product 79 Patents grades, since 2000 application Capability Stage pending process, efficiencies Products Added 2019-20 216 M
Slide 20: …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 21: 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 22: 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 23: Awards & Certifications
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 24: Accolades Received in Q1FY22
Accolades Received in Q1FY22 Participation in the World Environment Day 2021 Initiation of "Water Shed Management Drought Received Certificate of Appreciation from Jhagadia Competition for recognition of "Ecosystem Locations in India" has been recognized as an Excellent Industries Association for ma
Slide 25: 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 26: 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 27: 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 28: 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 29: Growth Strategy
Growth Strategy 28
Slide 30: 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 31: 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 32: Financial Performance
Financial Performance 31
Slide 33: 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 34: Volume: FY21 Highlights
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 35: Revenue Highlights FY21
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 34
Slide 36: 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 37: 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 38: 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 39: 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 40: 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 41: 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 42: 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
Slide 43: Investors Release: Q1 FY22 Consolidated Performance
Investors Release Galaxy Surfactants Limited Q1 FY22 Consolidated Performance: • Total volume grew by 15.4% for Q1FY22, on YoY basis • Total Revenue (including other income) stood at Rs. 830.9 Cr, a YoY growth of 36.7% on account of better sales volumes in both Performance Surfactants and Specialty
Slide 44: Investors Release: Management commentary
Investors Release Commenting on the performance Mr. U. Shekhar, Managing Director, Galaxy Surfactants Limited said, “FY 2021-22 has begun on a strong note, sustaining the momentum seen in FY 21. While the demand outlook continues to remain robust, as seen by the Volume growth registered in this quar
Slide 45: Investors Release: Q1FY22 Performance
Investors Release Q1FY22 Performance • Total volumes stood at 59,864 MT for Q1FY22 as against 51,893 MT in Q1FY22, up by 15.4% YoY o ROW markets grew by 28.6% due to Specialty Care Products o Indian market grew by 32.1% coming off a low base (Q1FY21) o AMET market de-grew by 5.8% AMET volumes were a
Slide 46: Investors Release: For further details please contact
Investors Release For further details please contact: Company Investor Relations Advisors Galaxy Surfactants Limited Strategic Growth Advisors Pvt Ltd. CIN No: L39877MH1986PLC039877 CIN No: U74140MH2010PTC204285 Name: Mr. Paritosh Srivastava Mr. Rahul Agarwal / Mr. Vijay Goel Email id: paritosh.sriv