Galaxy Surfactants Ltd. · NSE:GALAXYSURF
Galaxy Surfactants — H1 FY2024 Earnings Presentation
44 slides from Galaxy Surfactants's earnings presentation, Nov 10, 2023
Slide 1: Galaxy Surfactants Ltd. exchange filing cover letter
Galaxy Surfactants Ltd. November 10, 2023 National Stock Exchange of India Ltd., BSE Limited, Exchange Plaza, C-1, Block G, Listing Department, Bandra Kurla Complex, Phiroze Jeejeebhoy Towers, Bandra (East) Dalal Street, Mumbai – 400 051 Mumbai- 400001 Scrip Symbol: GALAXYSURF Scrip Code: 540935 Sub
Slide 2: Galaxy Surfactants Limited Investor Presentation - November 2023
z- to6a Se±lie to to6at @aeds Galaxy Surfactants Limited Investor Presentation - November 2023 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: Q2 & H1 FY24 Performance Highlights
Q2 & H1 FY24 Performance Highlights 3
Slide 5: H1FY24: Key Developments
H1FY24: Key Developments Volume Growth for H1FY24 stood at 8.6% exceeding the guided range of 6-8% for FY24; For Q2FY24 the same stood at 9.8% with Growth seen across all Markets Inventory Destocking continues in North America; but signs of improvement are visible in Masstige Specialties India remai
Slide 6: H1FY24 Performance Highlights
H1FY24 Performance Highlights + Performance Speciality Care Surfactants Revenue Total Revenue Revenue Rs. 1,169.9 cr Rs. 760.2 cr Rs. 1,930.1 cr Segment-wise Volume Performance I 7 I rI I Performance Surfactants I Speciality Care I I I I Improving Momentum - Double Digit Growth in I I Masstige Segme
Slide 7: Consolidated Profit & Loss Statement
Consolidated Profit & Loss Statement Particulars (Rs. In Crores) Q2FY24 Q2FY23 Y-o-Y Q1FY24 Q-o-Q H1FY24 H1FY23 Y-o-Y Net Revenue from Operations 983.1 1,236.5 -20.5% 941.8 4.4% 1,924.9 2,399.3 -19.8% Other Income 2.7 1.1 2.5 5.2 -0.9 Fatty Alcohol prices in Total Revenue 985.8 1,237.6 -20.3% 944.3
Slide 8: Consolidated Balance Sheet
Consolidated Balance Sheet Particulars (Rs. In Crores) Sep'23 Mar'23 Particulars (Rs. In Crores) Sep'23 Mar'23 ASSETS EQUITY AND LIABILITIES . . 44444444444444444 44444_4 4 Property, Plant and Equipment 800.3 773.4 f...EQUITY -1.- Right-of-use assets 138.1 141.9 Equity Share Capital 35.5 35.5 Capita
Slide 9: Consolidated Cash Flow Statement
Consolidated Cash Flow Statement Particulars (Rs. In Crores) Sep'23 Sep'22 Cash Flow From Operating Activities : Profit After Tax 152.6 184.2 Operating Profit before working Capital changes 248.6 275.5 Net cash flows generated from/(used) in Operating Activities (A) 227.2 112.0 Net cash flows genera
Slide 10: Standalone Profit & Loss Statement
Standalone Profit & Loss Statement Particulars (Rs. In Crores) Q2FY24 Q2FY23 Y-o-Y Q1FY24 Q-o-Q H1FY24 H1FY23 Y-o-Y Net Revenue from Operations 713.3 869.7 -18.0% 652.9 9.3% 1,366.2 1,729.9 -21.0% Other Income 3.9 -1.9 7.0 10.9 -5.9 Total Revenue 717.2 867.8 -17.4% 659.9 8.7% 1,377.1 1,724.0 -20.1%
Slide 11: Standalone Balance Sheet
Standalone Balance Sheet Particulars (Rs. In Crores) Sep'23 Mar'23 Particulars (Rs. In Crores) Sep'23 Mar'23 ASSETS EQUITY AND LIABILITIES Property, Plant and Equipment 520.4 526.3 EQUITY Right-of-use assets 96.5 98.4 Equity Share Capital 35.5 35.5 Capital work-in-progress 103.8 84.5 Other Equity 1,
Slide 12: Standalone Cash Flow Statement
Standalone Cash Flow Statement Particulars (Rs. In Crores) Sep'23 Sep'22 Cash Flow From Operating Activities : Profit After Tax 106.7 92.0 Operating Profit before working Capital changes 168.9 158.3 Net cash flows generated from/(used) in Operating Activities (A) 111.5 103.8 Net cash flows generated
Slide 13: Business Overview
Business Overview 12
Slide 14: 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 15: …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 16: 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 17: 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 18: 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 19: …with 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 20: 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 21: 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* H1FY24: ✓ Revenue Breakup 0 Manufacturing India: Parent Entity @ R&D ✓ 3
Slide 22: “Consumer to Chemistry”: Creation of Products
“Consumer to Chemistry”: Creation of Products Idea Stage j@� 91 approved Patents and 21 applied GLOBALLY r -•- INDIA USA EUROPE ROW Applied Feasibility Stage 22 20 4 9 21 -------------- . . . ----------------. i e . . e. ; .. . i .. . ' . ,- --0 Capability Stage «i 91 Patents since 2000 21 Patents a
Slide 23: …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 100+ professionals comprising of doctorates, chemists and engineers Well-Equipped R&D Centre, Pilot Plant at Tarapur, Maha
Slide 24: 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 25: 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 26: 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 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 27: ESG Initiatives
ESG Initiatives 26
Slide 28: 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 29: 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 28
Slide 30: 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 31: 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 32: 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 33: Corporate Governance: 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 32
Slide 34: 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 35: 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 36: 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 37: Growth Strategy
Growth Strategy 36
Slide 38: 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 39: 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 40: Financial Performance
Financial Performance 39
Slide 41: 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 42: 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 43: 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 44: 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