Galaxy Surfactants Ltd. · NSE:GALAXYSURF
Galaxy Surfactants — FY2024 Earnings Presentation
43 slides from Galaxy Surfactants's earnings presentation, May 21, 2024
Slide 1: Exchange filing cover letter
May 21, 2024 National Stock Exchange of India Limited 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: Investor presentation on
Slide 2: Galaxy Surfactants Limited Investor Presentation - May 2024
Galaxy Surfactants Limited Investor Presentation - May 2024
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: Q4 & FY24 Performance Highlights
Q4 & FY24 Performance Highlights 3
Slide 5: FY24: Key Developments
FY24: Key Developments Volume Growth for FY24 at 7.7% within the guided range of 6-8%. EBITDA/MT above Rs 20,000/MT within the guided range of Rs 19,500 – Rs 20,500/MT Record Quarterly volumes for ROW driven by Masstige categories. AMET volumes were adversely impacted in Q-4 due to RED Sea Escalatio
Slide 6: FY24 Performance Highlights
FY24 Performance Highlights Performance Speciality Care Surfactants Revenue Total Revenue Revenue Rs. 2,259.6 cr Rs. 1,570.2 cr Rs. 3,829.8 cr Segment-wise Volume Performance Performance Surfactants Speciality Care Low single Digit Volume Growth YOY Mid Double Digit Volume Growth YOY Region-wise Vol
Slide 7: Consolidated Profit & Loss Statement
Consolidated Profit & Loss Statement Particulars (Rs. In Crores) Q4FY24 Q3FY24 Q-o-Q Q4FY23 Y-o-Y FY24 FY23 Y-o-Y Net Revenue from Operations 929.0 940.5 -1.2% 979.6 -5.2% 3,794.4 4,464.0 -15.0% Other Income 23.9 6.4 7.0 35.5 9.9 Fatty Alcohol prices in Total Revenue 952.9 946.9 0.6% 986.6 -3.4% 3,8
Slide 8: Consolidated Balance Sheet
Consolidated Balance Sheet Particulars (Rs. In Crores) Mar'24 Mar'23 Particulars (Rs. In Crores) Mar'24 Mar'23 ASSETS EQUITY AND LIABILITIES Property, Plant and Equipment 825.1 773.4 EQUITY Right-of-use assets 140.4 141.9 Equity Share Capital 35.5 35.5 Capital work-in-progress 158.5 139.2 Other Equi
Slide 9: Consolidated Cash Flow Statement
Consolidated Cash Flow Statement Particulars (Rs. In Crores) FY24 FY23 Cash Flow From Operating Activities : Profit After Tax 301.5 381.0 Operating Profit before working Capital changes 485.5 577.9 Net cash flows generated from/(used) in Operating Activities (A) 518.4 573.0 Net cash flows generated
Slide 10: Standalone Profit & Loss Statement
Standalone Profit & Loss Statement Particulars (Rs. In Crores) Q4FY24 Q3FY24 Q-o-Q Q4FY23 Y-o-Y FY24 FY23 Y-o-Y Net Revenue from Operations 705.7 673.4 4.8% 682.6 3.4% 2,745.2 3,178.1 -13.6% Other Income 4.4 8.7 2.7 24.0 -6.0 Total Revenue 710.1 682.1 4.1% 685.3 3.6% 2,769.2 3,172.1 -12.7% Cost of M
Slide 11: Standalone Balance Sheet
Standalone Balance Sheet Particulars (Rs. In Crores) Mar'24 Mar'23 Particulars (Rs. In Crores) Mar'24 Mar'23 ASSETS EQUITY AND LIABILITIES Property, Plant and Equipment 526.5 526.3 EQUITY Right-of-use assets 101.0 98.4 Equity Share Capital 35.5 35.5 Capital work-in-progress 155.4 84.5 Other Equity 1
Slide 12: Standalone Cash Flow Statement
Standalone Cash Flow Statement Particulars (Rs. In Crores) FY24 FY23 Cash Flow From Operating Activities : Profit After Tax 200.3 214.0 Operating Profit before working Capital changes 319.3 358.0 Net cash flows generated from/(used) in Operating Activities (A) 238.4 330.6 Net cash flows generated fr
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 7 Strategically Located 215+ Product Grades Extensive R&D Capabilities Indigenous Facilities with Inhouse Project 100+ Members, R&D Centre, Intellectual property Execution Capabilities Pilot Plant, Product Application 96 Approved; 21 Applied 5 in India, 1 in Eg
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: Consumer Benefits
… with over 215+ 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 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* FY24: Revenue Breakup Manufacturing ✓ India: Parent Entity R&D Manufactu
Slide 22: “Consumer to Chemistry”: Creation of Products
“Consumer to Chemistry”: Creation of Products Idea Stage 96 approved Patents and 21 applied INDIA USA GLOBALLY EUROPE ROW Applied Feasibility Stage 27 21 4 9 21 Granted 6 New product 96 Patents 21 Patents grades, Patents in Capability Stage since 2000 applied process, FY24 (5 in India) efficiencies
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 products rolling out from R&D activities ✓ Easy access to the Jawaharlal Nehru Port Trust, Navi Mumbai ✓ One of the
Slide 25: 1,385+ Clients across 80+ Countries
1,385+ 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-produ
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 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 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
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 Limited
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 • Board of directors • Code of conduct laid down • Formulated and • Employee welfare council • A dedicated ‘Investor constituted in compliance employee code of conduct implemented policy on risk
Slide 33: Corporate Governance
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: Board Members
Board Members Mr. Natarajan K. Krishnan Mr. Vaijanath Kulkarni Managing Director Executive Director and COO •Associated with Company since 1993 •Associated with Company since 1995 •CWA, Advanced Management Program from Harvard •Chemical Engineer Business School Mr. Melarkode G. Parameswaran Mr. Unna
Slide 35: 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 36: Growth Strategy
Growth Strategy 35
Slide 37: 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 38: 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 39: Financial Performance
Financial Performance 38
Slide 40: 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 41: Our Performance Highlights
Our Performance Highlights Total Income^ (Rs. In Crs) EBITDA^ (Rs. In Crs) PAT (Rs. In Crs) +11% +7% +7% 4,474 578 381 3,698 3,930 498 460 302 302 413 263 2,795 375 230 2,602 FY20 FY21 FY22 FY23 FY24 FY20 FY21 FY22 FY23 FY24 FY20 FY21 FY22 FY23 FY24 EBITDA per tonne (in Rs) Total Volume Growth (MT)
Slide 42: Our Financial Strength
Our Financial Strength Debt/ Equity (x) Return on Equity (%) 0.4 24.7% 25.5% 20.2% 18.3% 0.2 0.2 13.8% 0.1 0.1 FY20 FY21 FY22 FY23 FY24 FY20 FY21 FY22 FY23 FY24 Cash Flow from Operating Activities (Rs in Crs) Return on Capital Employed (%) 573 25.2% 518 23.5% 23.0% 19.3% 17.7% 365 316 5 FY20 FY21 FY
Slide 43: Thank You
Thank Company : Investor Relations Advisors : You CIN No: L39877MH1986PLC039877 CIN - U74140MH2010PTC204285 Mr. Paritosh Srivastava Mr. Rahul Agarwal / Mr. Mandar Chavan Email: Paritosh.Srivastava@galaxysurfactants.com rahul.agarwal@sgapl.net / mandar.chavan@sgapl.net www.galaxysurfactants.com +91 9