Galaxy Surfactants Ltd. · NSE:GALAXYSURF
Galaxy Surfactants — Q3 FY2023 Earnings Presentation
44 slides from Galaxy Surfactants's earnings presentation, Feb 11, 2023
Slide 1: Exchange filing cover letter
February 11, 2023 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 2023
Galaxy Surfactants Limited Investor Presentation - February 2023
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 FY23 Performance Highlights
Q3 & 9M FY23 Performance Highlights 3
Slide 5: Q3 & 9M FY23: Key Developments
Q3 & 9M FY23: Key Developments Supply Side situation improves. Significant decline in Freight rates, raw material prices and improved availability vis-à-vis YTD Dec FY 22 aids performance While macro headwinds continue in AMET, Q-O-Q Volumes reflect some improvement. Slowdown in Europe impacts Speci
Slide 6: Q3 & 9M FY23 Consolidated Highlights
Q3 & 9M FY23 Consolidated Highlights Total Revenue^ EBITDA PAT +16% +102% +133% Rs. In Crores 1,084 158 106 931 78 46 Q3FY22 Q3FY23 Q3FY22 Q3FY23 Q3FY22 Q3FY23 Total Revenue^ EBITDA PAT +31% +63% +77% 3,474 437 291 2,644 267 164 9MFY22 9MFY23 9MFY22 9MFY23 9MFY22 9MFY23 ^Includes other Income 5
Slide 7: Volume: Q3FY23 Highlights
Volume: Q3FY23 Highlights Performance Surfactants Specialty Care Products Total Volume 36,983 39,156 21,044 58,027 58,364 19,208 Volume Highlights Q3FY22 Q3FY23 Q3FY22 Q3FY23 Q3FY22 Q3FY23 India Market grew YoY by 12.2% Africa Middle East Turkey de-grew YoY by 6.4% Rest of the World de-grew YoY by 8
Slide 8: Volume: 9MFY23 Highlights
Volume: 9MFY23 Highlights Performance Surfactants Specialty Care Products Total Volume 1,13,784 1,13,501 62,922 59,418 1,76,706 1,72,919 Volume Highlights 9MFY22 9MFY23 9MFY22 9MFY23 9MFY22 9MFY23 India Market grew YoY by 7.7% Africa Middle East Turkey de-grew YoY by 14.8% Rest of the World de-grew
Slide 9: Revenue Highlights
Q3 & 9M FY23 Consolidated Highlights Performance Surfactants Specialty Care Products Total Revenue^ +20% +11% +16% Rs. In Crores 683 401 1,084 570 361 931 Revenue Highlights Q3FY22 Q3FY23 Q3FY22 Q3FY23 Q3FY22 Q3FY23 Performance Surfactants Specialty Care Products Total Revenue^ +32% +31% +31% 2,165
Slide 10: Consolidated Profit & Loss Statement
Consolidated Profit & Loss Statement Particulars (Rs. In Crores) Q3FY23 Q3FY22 Y-o-Y Q2FY23 Q-o-Q 9MFY23 9MFY22 Y-o-Y Net Revenue from Operations 1,080.3 929.1 16.3% 1,231.6 -12.3% 3,470.8 2,632.8 31.8% Other Income 3.7 1.8 1.1 2.8 11.3 Fatty Alcohol prices in Total Revenue 1,084.0 930.9 16.5% 1,232
Slide 11: Standalone Profit & Loss Statement
Standalone Profit & Loss Statement Particulars (Rs. In Crores) Q3FY23 Q3FY22 Y-o-Y Q2FY23 Q-o-Q 9MFY23 9MFY22 Y-o-Y Net Revenue from Operations 760.7 656.4 15.9% 864.8 -12.0% 2,481.8 1,835.9 35.2% Other Income -2.8 4.9 -1.9 -8.7 16.4 Total Revenue 757.9 661.3 14.6% 862.9 -12.2% 2,473.1 1,852.2 33.5%
Slide 12: Business Overview
Business Overview 11
Slide 13: Truly Indian MNC…
Truly Indian MNC… Leading manufacturer of Product applications across Preferred supplier to leading Ingredient for Home & Mass, Masstige & Prestige Multinational, Regional & Brand Custodian Personal care Industry (HPC) range of Customers Local FMCG Brands Globally Recognized Integrated Across Full A
Slide 14: …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 88 Approved; 15 Applied 5 in India, 1 in Egyp
Slide 15: 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 16: 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 Chemicals 2009: 2014: Purchas
Slide 17: 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 18: 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 19: 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 20: Our Global Footprints
Our Global Footprints USA: TRI-K Industries-100% owned Manufacturing ✓ Netherlands R&D ✓ USA # Plants 1 TRI K Industries Global # Employees 67 Headquarters Egypt Galaxy Marketing office ✓ Chemicals (Egypt) S.A.E. India Egypt:100% owned* 9MFY23: Revenue Breakup Manufacturing ✓ India: Parent Entity R&
Slide 21: “Consumer to Chemistry”: Creation of Products
“Consumer to Chemistry”: Creation of Products 88 approved Patents and 15 applied Idea Stage INDIA USA GLOBALLY EUROPE ROW Applied Feasibility Stage 20 20 5 9 15 3 Patent New product 88 Patents 15 Patent grades, Granted in Capability Stage since 2000 applied process, India in FY22 efficiencies Produc
Slide 22: …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 23: 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 24: 1,400+ Clients across 80+ Countries
1,400+ 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 25: 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 26: Accolades Received in FY22
Accolades Received in FY22 25
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: Galaxy Surfactants certified 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: Management Team on Board
Management Team on Board 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 Company since 2005 •Chemical Engineer, PGDM from IIM, Calcutta •Chemical Engineer from
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 •Qualified CA and CS 1986 •Qualified CA Mr. Subodh S. Nadkarni Ms
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 Commitments, T
Slide 37: Growth Strategy
Growth Strategy 36
Slide 38: 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 39: 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 40: Financial Performance
Financial Performance ee)
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 84.00 2,600 80.00 2,200 76.00 1,800 72.00 1,400 1,000 68.00 LA Price USDINR … through Robust Risk Management Practices Source: Market Prices – ICIS – LOR Source: RBI 40
Slide 42: Our Performance Highlights
Our Performance Highlights Revenue^ (Rs. In Crs) EBITDA^ (Rs. In Crs) PAT (Rs. In Crs) +13% 3,698 +10% 460 +17% 302 413 263 358 375 230 2,768 2,602 2,795 2,444 282 298 191 2,172 1,807 238 148 158 101 FY16 FY17* FY18* FY19* FY20* FY21* FY22* FY16 FY17* FY18* FY19* FY20* FY21* FY22* FY16 FY17* FY18* F
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 18.3% 0.5 0.3 0.4 0.2 0.2 FY16 FY17* FY18* FY19* FY20* FY21* FY22* FY16 FY17* FY18* FY19* FY20* FY21* FY22* Cash Flow from Operating Activities (Rs in Crs) Return on Capital Employed (%) 365 26.8
Slide 44: 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