Galaxy Surfactants Ltd. · NSE:GALAXYSURF
Galaxy Surfactants — FY2020 Earnings Presentation
43 slides from Galaxy Surfactants's earnings presentation, Jun 26, 2020
Slide 1: Cover letter to stock exchanges
June 2ϲ, 2020 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 S
Slide 2: Galaxy Surfactants Limited Investor Presentation - June 2020
Galaxy Surfactants Limited Investor Presentation - June 2020
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: FY20 Performance Highlights
FY20 Performance Highlights 3
Slide 5: FY20: Key Developments
FY20: Key Developments The AMET Market outperformed on the back of strong growth registered by the local Egypt Market Domestic India Market remained flat, though second half was stronger than the first half of FY20 All three regions and both the segments report volume growth despite a slowing global
Slide 6: Volume: FY20 Highlights (YoY)
Volume: FY20 Highlights (YoY) Performance Surfactants Specialty Care Products Total Volume +6.0% +1.7% +4.4% 1,35,337 1,43,521 79,374 80,716 2,14,711 2,24,237 Volume Highlights FY19 FY20 FY19 FY20 FY19 FY20 India Market grew by 0.5% Africa Middle East Turkey grew by 9.4% Rest of the World grew by 2.
Slide 7: Revenue Highlights
FY20 Highlights (YoY) Performance Surfactants Specialty Care Products Total Revenue^ -8.8% -1.1% -6.0% 1,741 1,027 1,015 2,768 2,602 1,587 Revenue Highlights FY19 FY20 FY19 FY20 FY19 FY20 EBITDA^ PAT +4.7% +20.6% 358 375 230 191 Rs. In Crores FY19 FY20 FY19 FY20 As per Ind AS ^Includes other Income
Slide 8: Consolidated Profit & Loss Statement
Consolidated Profit & Loss Statement Particulars (Rs. In Crores) Q4 FY20 Q4 FY19 Y-o-Y FY20 FY19 Y-o-Y Net Revenue from Operations 656.7 682.0 -3.7% 2,596.4 2,763.0 -6.0% Other Income 0.0 3.5 5.9 4.7 Total Revenue 656.7 685.5 -4.2% 2,602.3 2,767.7 -6.0% Cost of Material Consumed 417.8 466.2 1,715.3
Slide 9: Standalone Profit & Loss Statement
Standalone Profit & Loss Statement Particulars (Rs. In Crores) Q4 FY20 Q4 FY19 Y-o-Y FY20 FY19 Y-o-Y Net Revenue from Operations 434.0 492.3 -11.8% 1,793.1 1,996.4 -10.2% Other Income 1.4 3.8 5.4 35.9 Total Revenue 435.4 496.0 -12.2% 1,798.5 2,032.3 -11.5% Cost of Material Consumed 281.1 341.6 1,198
Slide 10: Consolidated Balance Sheet
Consolidated Balance Sheet Particulars (Rs. In Crores) Mar'20 Mar’19 Particulars (Rs. In Crores) Mar'20 Mar’19 ASSETS EQUITY AND LIABILITIES Property, Plant and Equipment 623.9 511.2 EQUITY Right-of-use assets 115.7 - Equity Share Capital 35.5 35.5 Capital work-in-progress 66.0 82.6 Other Equity 1,0
Slide 11: Consolidated Cash Flow Statement
Consolidated Cash Flow Statement Particulars (Rs. In Crores) 31-Mar-20 31-Mar-19 Cash Flow From Operating Activities : Profit After Tax 230.4 191.0 Adjustments for noncash items 143.0 165.8 Operating Profit before working Capital changes 373.4 356.8 Working capital adjustments 11.3 1.1 Cash flows ge
Slide 12: Standalone Balance Sheet
Standalone Balance Sheet Particulars (Rs. In Crores) Mar'20 Mar’19 Particulars (Rs. In Crores) Mar'20 Mar’19 ASSETS EQUITY AND LIABILITIES Property, Plant and Equipment 369.6 354.2 EQUITY Capital work-in-progress 61.4 40.2 Equity Share Capital 35.5 35.5 Right of use Asset 102.4 0.0 Other Equity 854.
Slide 13: Standalone Cash Flow Statement
Standalone Cash Flow Statement Particulars (Rs. In Crores) 31-Mar-20 31-Mar-19 Cash Flow From Operating Activities : Profit After Tax 182.2 168.5 Adjustments for noncash items 102.3 99.4 Operating Profit before working Capital changes 284.5 267.8 Working capital adjustments -14.6 40.2 Cash flows gen
Slide 14: Business Overview
Business Overview 13
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 205+ Product Grades Extensive R&D Capabilities Indigenous Facilities with Inhouse Project 74 Members, R&D Centre, Pilot Intellectual property Execution Capabilities Plant, Product Application 70 Approved; 16 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: Over 205+ Product Offerings and Consumer Benefits
… with over 205+ 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* FY20: Revenue Breakup Manufacturing ✓ India: Paren
Slide 23: Consumer to Chemistry: Creation of Products
“Consumer to Chemistry”: Creation of Products 70 approved Patents and 16 applied Idea Stage INDIA USA GLOBALLY EUROPE ROW Applied Feasibility Stage 16 15 4 8 16 Rs. 8 crs New product 70 Patents 16 Patent incurred to grades, since 2002 application Capability Stage pending enhance the process, R&D set
Slide 24: …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 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 80+ Countries
1750+ 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 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 Received during FY20
Accolades Received during FY20 Company won the Gold award for its innovative product TiLS (G) - An oil soluble surfactant at the HPCI Mumbai Conference 2020 • The Company has been Won the “Excellent Use of certified for the 2nd time IP in Innovation” Award at as Great Place to Work - the IP Summit &
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: Growth Strategy
Growth Strategy 31
Slide 33: 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 34: 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 35: Financial Performance
Financial Performance 34
Slide 36: 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 1,100 67 1,000 65 Apr-18 Jun-18 Oct-18 Jun-19 Jul-18 Aug-18 Nov-18 Jan-19 Mar-19 Apr-19 May-18 Sep-18 Feb-19 Dec-18 May-19 Q1FY19 Q2FY
Slide 37: Our Performance Highlights
Our Performance Highlights Revenue^ (Rs. In Crs) EBITDA^ (Rs. In Crs) PAT (Rs. In Crs) +7% 2,768 2,602 +14% 375 230 358 +28% 2,444 191 2,172 282 298 1,875 1,807 238 148 158 192 101 68 FY15 FY16 FY17* FY18* FY19* FY20* FY15 FY16 FY17* FY18* FY19* FY20* FY15 FY16 FY17* FY18* FY19* FY20* EBITDA per ton
Slide 38: 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% 24.7% 20.4% 0.7 0.5 0.3 0.4 FY15 FY16 FY17* FY18* FY19* FY20* FY15 FY16 FY17* FY18* FY19* FY20* Cash Flow from Operating Activities Return on Capital Employed (%) (Rs in cr) 316 283 26.8% 25.2% 23.9% 22.
Slide 39: Thank You
Thank Company : Investor Relations Advisors : You CIN No: L39877MH1986PLC039877 CIN - U74140MH2010PTC204285 Mr. Paritosh Srivastava Ms. Neha Shroff Email: Paritosh.Srivastava@galaxysurfactants.com neha.shroff@sgapl.net +91 7738073466 www.galaxysurfactants.com www.sgapl.net 38
Slide 40: Investors Release: FY20 Consolidated Performance
Investors Release Galaxy Surfactants Limited FY20 Consolidated Performance: • Total volume grew by 4.4% for FY20, YoY basis • Total Revenue (including other income) stood at Rs. 2,602.3 Cr, a YoY degrowth of 6.0% on account of lower fatty alcohol prices which declined by 12.7% • EBITDA stood at Rs.
Slide 41: Investors Release: Managing Director commentary
Investors Release Commenting on the performance Mr. U. Shekhar, Managing Director, Galaxy Surfactants Limited said “FY 2019-20 has been relatively a mixed year for us. While Egypt was the highlight of this year, disappointments mainly were the sluggish Indian Home and Personal Care Market and the ou
Slide 42: Investors Release: Performance Highlights
Investors Release Performance Highlights: Galaxy Surfactants Limited (Consolidated Results) Particulars (Rs. Cr) FY20 FY19 YoY% Total Revenue* 2,602.3 2,767.7 -6.0% EBITDA* 374.8 358.1 4.7% PAT 230.4 191.0 20.6% *Includes other income Galaxy Surfactants Limited (Volume Break up): FY20 Particulars Yo
Slide 43: About Galaxy Surfactants Limited
Investors Release About Galaxy Surfactants Limited: Incorporated in 1986, Galaxy Surfactants Ltd is leading manufacturers of Performance Surfactants and Specialty Care products with over 205 product grades. These products are used in consumer-centric Home and Personal care products like hair care, o