Galaxy Surfactants Ltd. · NSE:GALAXYSURF
Galaxy Surfactants — Q3 FY24 Earnings Presentation
40 slides from Galaxy Surfactants's earnings presentation, Feb 12, 2024
Slide 1: Galaxy Surfactants Ltd. exchange cover letter
Galaxy Surfactants Ltd. February 12, 2024 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:
Slide 2: Galaxy Surfactants Limited Investor Presentation - February 2024
z- to6a Se±lie to to6at @aeds Galaxy Surfactants Limited Investor Presentation - February 2024 r @9
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: Q3 & 9M FY24 Performance Highlights
Q3 & 9M FY24 Performance Highlights 3
Slide 5: 9MFY24: Key Developments
9MFY24: Key Developments Volume growth at 8.5% exceeds the guided range of 6-8% Volume momentum sustains in India and AMET. ROW registers healthy double-digit growth for the quarter RED Sea escalation adversely impacts quarterly volumes, causing a spillover to Q4FY24. Further escalation remains the
Slide 6: 9MFY24 Performance Highlights
9MFY24 Performance Highlights + Performance Speciality Care Surfactants Revenue Total Revenue Revenue Rs. 1,729.3 cr Rs. 1,147.6 cr Rs. 2,876.9 cr Segment-wise Volume Performance I 7 I rI I Performance Surfactants I Speciality Care I I I I High single digit volume growth YOY I I Low double digit vol
Slide 7: Consolidated Profit & Loss Statement
Consolidated Profit & Loss Statement Particulars (Rs. In Crores) Q3FY24 Q3FY23 Y-o-Y Q2FY24 Q-o-Q 9MFY24 9MFY23 Y-o-Y Net Revenue from Operations 940.5 1,085.1 -13.3% 983.1 -4.3% 2,865.4 3,484.4 -17.8% Other Income 6.4 3.7 2.7 11.6 2.8 Fatty Alcohol prices in Total Revenue 946.9 1,088.9 -13.0% 985.8
Slide 8: Standalone Profit & Loss Statement
Standalone Profit & Loss Statement Particulars (Rs. In Crores) Q3FY24 Q3FY23 Y-o-Y Q2FY24 Q-o-Q 9MFY24 9MFY23 Y-o-Y Net Revenue from Operations 673.4 765.6 -12.0% 713.3 -5.6% 2,039.5 2,495.5 -18.3% Other Income 8.7 -2.8 3.9 19.6 -8.7 Total Revenue 682.1 762.8 -10.6% 717.2 -4.9% 2,059.1 2,486.8 -17.2
Slide 9: Business Overview
Business Overview 8
Slide 10: Truly Indian MNC
Truly Indian MNC… Leading manufacturer of Product applications across Preferred supplier to leading ingredients for Home and Mass, Masstige & Prestige Multinational, Regional & Brand Custodian Personal Care Industries range of Customers Local FMCG Brands Globally Recognized Integrated Across Full Ad
Slide 11: Vertically Integrated in HPC Industry
…Vertically Integrated in HPC Industry r: 0 0 0 0 O o% O €: - i#3 \ @X r 0 1es ~, ( " 0 7 Strategically Located 210+ Product Grades Extensive R&D Capabilities Indigenous Facilities with Inhouse Project 100+ Members, R&D Centre, Intellectual property Execution Capabilities Pilot Plant, Product Applic
Slide 12: 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 13: 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 2009: 2014: Purchase of busin
Slide 14: 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 Liquid Detergent Mass Mass -tige Prestige Serving needs across Consume
Slide 15: Over 210+ Product Offerings
… with over 210+ Product Offerings I . Anionic Surfactants FAES, FAS, LABSA ✓ Foam and Dirt removal properties I Performance I I I Surfactants I Non-Ionics Surfactants Ethoxylates ✓ Cosmetics and Personal care products as emulsifiers and solubilisers Betaines ✓ Dermatological properties to reduces s
Slide 16: 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 17: Our Global Footprints
Our Global Footprints USA: TRI-K Industries-100% owned Manufacturing ✓ R&D ✓ USA # Plants 1 TRI K Industries Global # Employees 75+ Headquarters Egypt Galaxy Marketing office ✓ Chemicals (Egypt) S.A.E. India Egypt:100% owned* 9MFY24: ✓ Revenue Breakup 0 Manufacturing India: Parent Entity @ R&D Man
Slide 18: Consumer to Chemistry: Creation of Products
“Consumer to Chemistry”: Creation of Products Idea Stage j@� 93 approved Patents and 21 applied GLOBALLY r -•- INDIA USA EUROPE ROW Applied Feasibility Stage 24 21 4 9 21 -------------- . . . ----------------. i e . . e. ; .. . i .. . ' . ,- --0 Capability Stage «i 93 Patents since 2000 21 Patents a
Slide 19: 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 100+ professionals comprising of doctorates, chemists and engineers Well-Equipped R&D Centre, Pilot Plant at Tarapur, Maha
Slide 20: 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 ge ✓ products rolling out from R&D activities Easy access to the Jawaharlal Nehru Port Trust, Navi Mumbai ✓ One of t
Slide 21: 1,380+ Clients across 80+ Countries
1,380+ Clients across 80+ Countries Procter & Colgate Reckitt Unilever Dabur Gamble Palmolive Benckiser Himalaya Henkel t Emami t Loreal CavinKare & Many more… Long term strategic relationship with all of the top 10 customers Strict qualifications and extensive collaboration with customers for end-p
Slide 22: Awards & Certifications
Awards & Certifications: Won in the Past Decade “Best Supply Partner”, 2015 2018 “Winning through Award of Global Performance” for d2.so Long Standing Partner Award Recognition from Innovation” at the Partner L'OREAL L’Oréal Asia Pacific 2012 (Saa Best Reliable Partner Award to Win, 2012 Awards “Cer
Slide 23: ESG Initiatives
ESG Initiatives 22
Slide 24: 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 25: Certified as 1.4X water positive
a.T7, to6at Gads r Galaxy Surfactants Ltd. has been certified as 1.4X water positive Because businesses thrive only when communities thrive 24
Slide 26: 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 L
Slide 27: 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 28: Corporate Governance
Corporate Governance Ethics Risk Grievances Disclosures & Governance & Integrity Management Transparency • • • • • d d d d d • Board of directors • Code of conduct laid down • Formulated and • Employee welfare council • A dedicated ‘Investor constituted in compliance employee code of conduct impleme
Slide 29: Corporate 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 28
Slide 30: Management Team on Board
Management Team on Board .-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·1 I • 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 Compan
Slide 31: 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 1986 •Qualified CA and CS •Qualified CA
Slide 32: 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 Comm
Slide 33: Growth Strategy
Growth Strategy 32
Slide 34: Personal & Home Care: High Entry Barrier Businesses
Personal & Home Care: High Entry Barrier Businesses Z @a@ to6at Sag±lie to 6ta6at @ads @ Process Product Customers - Chemical execution Engineering & inhouse project Wide spectrum of ingredients for Consumer categories / needs - Customer Centric Integrated solutions for the HPC FMCG Industry Meeting
Slide 35: Our Growth Vision
Our Growth Vision Sales R&D and Customer Market Strategy Profitability Optimization Innovation Wallet share 0: °)• A a\y C SQ, • 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
Slide 36: Financial Performance
Financial Performance 35
Slide 37: 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 84.0000 2,600 80.0000 2,200 76.0000 1,800 72.0000 1,400 1,000 68.0000 LA Price USDINR … through Robust Risk Management Practices Source: Market Prices – ICIS – LOR Source
Slide 38: Our Performance Highlights
Our Performance Highlights Revenue^ (Rs. In Crs) EBITDA^ (Rs. In Crs) PAT (Rs. In Crs) 4,455 578 381 +14% +14% +21% 3,698 460 302 413 263 2,768 2,602 2,795 358 375 230 2,444 298 191 2,172 282 1,807 238 148 158 101 FY16 FY17* FY18* FY19* FY20* FY21* FY22* FY23* FY16 FY17* FY18* FY19* FY20* FY21* FY22
Slide 39: 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 20.2% 18.3% 0.5 n 0.3 0.4 0.2 m r 0.2 0.1 FY16 FY17* FY18* FY19* FY20* FY21* FY22* FY23* FY16 FY17* FY18* FY19* FY20* FY21* FY22* FY23* Cash Flow from Operating Activities (Rs in Crs) Return on C
Slide 40: Thank You
Z @a@ ta6at Sag±lie to to6at Gaud Thank Company : Investor Relations Advisors : You Z @a@y $GA8age co«h oisors to6at Sag±lde to (todat Gads CIN No: L39877MH1986PLC039877 CIN - U74140MH2010PTC204285 Mr. Paritosh Srivastava Mr. Rahul Agarwal / Mr. Mandar Chavan Email: Paritosh.Srivastava@galaxysurfact