Galaxy Surfactants Ltd. · NSE:GALAXYSURF
Galaxy Surfactants — Q3 FY22 Earnings Presentation
45 slides from Galaxy Surfactants's earnings presentation, Feb 12, 2022
Slide 1: Exchange cover letter for investor presentation
February 12, 2022 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: 5
Slide 2: Galaxy Surfactants Limited Investor Presentation - February 2022
Galaxy Surfactants Limited Investor Presentation - February 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 s
Slide 4: Q3FY22 Performance Highlights
Q3FY22 Performance Highlights 3
Slide 5: Q3FY22: Key Developments
Q3FY22: Key Developments Supply led volatility continued in Q3FY22 Across the board inflationary scenario combined with Supply Chain challenges (Freight Costs + On time Container availability + Port congestion) impacted International Volumes and Margins India growth momentum continues. Structural up
Slide 6: Volume: Q3FY22 Highlights
Volume: Q3FY22 Highlights Performance Surfactants Specialty Care Products Total Volume 36,618 38,023 36,983 21,620 20,791 21,044 58,238 58,814 58,027 Volume Highlights Q3FY21 Q2FY22 Q3FY22 Q3FY21 Q2FY22 Q3FY22 Q3FY21 Q2FY22 Q3FY22 India Market grew YoY by 6.9% Africa Middle East Turkey de-grew YoY b
Slide 7: Volume: 9MFY22 Highlights
Volume: 9MFY22 Highlights Performance Surfactants Specialty Care Products Total Volume 1,14,441 1,13,784 62,922 1,73,157 1,76,706 58,716 Volume Highlights 9MFY21 9MFY22 9MFY21 9MFY22 9MFY21 9MFY22 India Market grew by 11.4% Africa Middle East Turkey de-grew by 9.6% Rest of the World grew by 6.7% 6
Slide 8: Q3FY22 & 9MFY22 Consolidated Highlights
Q3FY22 & 9MFY22 Consolidated Highlights Performance Surfactants Specialty Care Products Total Revenue^ Rs. In Crores 559 570 361 882 931 323 401 277 678 Revenue Highlights Q3FY21 Q2FY22 Q3FY22 Q3FY21 Q2FY22 Q3FY22 Q3FY21 Q2FY22 Q3FY22 Performance Surfactants Specialty Care Products Total Revenue^ 1,
Slide 9: Consolidated Profit & Loss Statement
Consolidated Profit & Loss Statement Particulars (Rs. In Crores) Q3FY22 Q3FY21 Y-o-Y Q2FY22 Q-o-Q 9MFY22 9MFY21 Y-o-Y FY21 Net Revenue from Operations 929.1 674.7 37.7% 877.3 5.9% 2,632.8 2,000.5 31.6% 2,784.1 Other Income 1.8 3.0 5.0 11.3 8.3 10.9 Fatty Alcohol prices in Total Revenue 930.9 677.7 3
Slide 10: Standalone Profit & Loss Statement
Standalone Profit & Loss Statement Particulars (Rs. In Crores) Q3FY22 Q3FY21 Y-o-Y Q2FY22 Q-o-Q 9MFY22 9MFY21 Y-o-Y FY21 Net Revenue from Operations 656.4 454.4 44.5% 624.7 5.1% 1,835.9 1,303.7 40.8% 1,830.5 Other Income 4.9 1.8 5.7 16.4 2.6 4.4 Total Revenue 661.3 456.1 45.0% 630.3 4.9% 1,852.2 1,3
Slide 11: Business Overview
Business Overview 10
Slide 12: 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 13: …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 80 Approved; 17 Applied 5 in India, 1 in Egyp
Slide 14: 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 15: 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 16: 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 17: Consumer Benefits: over 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 18: 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 19: 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* 9MFY22: Revenue Breakup Manufacturing ✓ India: Par
Slide 20: “Consumer to Chemistry”: Creation of Products
“Consumer to Chemistry”: Creation of Products 80 approved Patents and 17 applied Idea Stage INDIA USA GLOBALLY EUROPE ROW Applied Feasibility Stage 17 16 5 9 17 17 Patent New product 80 Patents grades, since 2000 application Capability Stage pending process, efficiencies Products Added 2019-20 216 M
Slide 21: …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 22: 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 23: 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 24: 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 25: Accolades Received in 9MFY22
Accolades Received in 9MFY22 24
Slide 26: 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 27: Management Team on Board
Management Team on Board Mr. Unnathan Shekhar Mr. Natarajan K. Krishnan Promoter, Managing Director Executive Director, Chief Operating Officer •Associated with Company since 1986 •Associated with Company since 1993 •Chemical Engineer, PGDM from IIM, Calcutta •CWA, Advanced Management Program from H
Slide 28: Along with Guidance of Senior Board Members
Along with Guidance of Senior Board Members Mr. Shekhar Ravindranath Warriar Mr. Gopalkrishnan Ramakrishnan Mr. Shashikant R. Shanbhag Chairman, Non-Executive Promoter, Non-Executive Director Promoter, Non-Executive Director Independent Director •Associated with Company since 1986 •Associated with C
Slide 29: 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 30: Growth Strategy
Growth Strategy 29
Slide 31: 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 32: 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 33: Financial Performance
Financial Performance 32
Slide 34: 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 77.00 2,600 75.00 73.00 2,200 71.00 1,800 69.00 1,400 67.00 1,000 65.00 LA Price USDINR … through Robust Risk Management Practices Source: Market Prices – ICIS – LOR Sour
Slide 35: Volume: FY21 Highlights (YoY)
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 36: FY21 Highlights (YoY)
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 35
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 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 38: Our Financial Strength
Our Financial 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 26.8%
Slide 39: Consolidated Profit & Loss Statement
Consolidated Profit & Loss Statement Particulars (Rs. In Crores) 9MFY22 FY21 FY20 Net Revenue from Operations 2,632.8 2,784.1 2,596.4 Other Income 11.3 10.9 5.9 Total Revenue 2,644.1 2,794.9 2,602.3 Cost of Material Consumed 1,882.8 1,774.6 1,715.3 Employee's Benefits Expense 153.5 204.0 178.1 Other
Slide 40: Consolidated Balance Sheet
Consolidated Balance Sheet Particulars (Rs. In Crores) Sep’21 Mar’21 Mar'20 Particulars (Rs. In Crores) Sep’21 Mar’21 Mar'20 ASSETS EQUITY AND LIABILITIES Property, Plant and Equipment 576.7 591.7 623.9 EQUITY Right-of-use assets 143.1 111.9 115.7 Equity Share Capital 35.5 35.5 35.5 Capital work-in-
Slide 41: Consolidated Cash Flow
Consolidated Cash Flow Half Year Full Year ended Particulars (Rs. In Crores) ended Sep’21 Mar’21 Mar’20 Cash Flow From Operating Activities : Profit After Tax 118.8 302.1 230.4 Operating Profit before working Capital changes 183.5 454.2 373.0 Net cash flows generated from/(used) in Operating Activit
Slide 42: Standalone Profit & Loss Statement
Standalone Profit & Loss Statement Particulars (Rs. In Crores) 9MFY22 FY21 FY20 Net Revenue from Operations 1,835.9 1,830.5 1,793.1 Other Income 16.4 4.4 5.4 Total Revenue 1,852.2 1,834.9 1,798.5 Cost of Material Consumed 1,378.8 1,208.1 1,198.5 Employee's Benefits Expense 81.3 105.7 94.4 Other Expe
Slide 43: Standalone Balance Sheet
Standalone Balance Sheet Particulars (Rs. In Crores) Sep’21 Mar’21 Mar'20 Particulars (Rs. In Crores) Sep’21 Mar’21 Mar'20 ASSETS EQUITY AND LIABILITIES Property, Plant and Equipment 348.6 358.5 369.6 EQUITY Right-of-use assets 97.4 99.2 102.4 Equity Share Capital 35.5 35.5 35.5 Capital work-in-prog
Slide 44: Standalone Cash Flow
Standalone Cash Flow Half Year Full Year ended Particulars (Rs. In Crores) ended Sep’21 Mar’21 Mar’20 Cash Flow From Operating Activities : Profit After Tax 66.8 177.9 182.2 Operating Profit before working Capital changes 107.8 296.5 284.0 Net cash flows generated from/(used) in Operating Activities
Slide 45: 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