Galaxy Surfactants Ltd. · NSE:GALAXYSURF
Galaxy Surfactants — FY2023 Earnings Presentation
46 slides from Galaxy Surfactants's earnings presentation, May 23, 2023
Slide 1: Filing cover letter to stock exchanges
May 23, 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: 540935
Slide 2: Galaxy Surfactants Limited Investor Presentation - May 2023
Galaxy Surfactants Limited Investor Presentation - May 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: Q4 & FY23 Performance Highlights
Q4 & FY23 Performance Highlights 3
Slide 5: Q4 & FY23: Key Developments
Q4 & FY23: Key Developments Significant decline in Freight rates, raw material prices and improved availability vis-à-vis FY22 aids performance in FY23 Contraction in Specialty Volumes due to slowdown in Developed Markets. Performance Surfactants make a strong comeback exhibiting YOY growth as well
Slide 6: Volume: FY23 Highlights
Volume: FY23 Highlights Volumes in MT Performance Surfactants Specialty Care Products Total Volume 1,49,195 1,53,126 85,023 2,34,218 2,30,785 77,659 FY22 FY23 FY22 FY23 FY22 FY23 India Market grew YoY by 9.4% Africa Middle East Turkey de-grew YoY by 11.9% Rest of the World de-grew YoY by 4.6% 5
Slide 7: FY23 Consolidated Highlights
FY23 Consolidated Highlights Rs. In Crores Performance Surfactants Revenue Specialty Care Products Revenue Total Revenue^ +28% +8% +20% 2,896 1,442 1,559 4,455 2,256 3,698 FY22 FY23 FY22 FY23 FY22 FY23 EBITDA PAT +40% +45% 578 381 413 263 FY22 FY23 FY22 FY23 ^Includes other Income 6
Slide 8: Volume: Q4FY23 Highlights
Volume: Q4FY23 Highlights Volumes in MT Performance Surfactants Specialty Care Products Total Volume 39,625 22,101 57,511 57,866 35,410 18,241 Q4FY22 Q4FY23 Q4FY22 Q4FY23 Q4FY22 Q4FY23 India Market grew YoY by 14.6% Africa Middle East Turkey de-grew YoY by 2.5% Rest of the World de-grew YoY by 15.9%
Slide 9: Consolidated Profit & Loss Statement
Consolidated Profit & Loss Statement Particulars (Rs. In Crores) Q4FY23 Q4FY22 Y-o-Y Q3FY23 Q-o-Q FY23 FY22 Y-o-Y Net Revenue from Operations 974.5 1,052.9 -7.5% 1,080.3 -9.8% 4,445.2 3,685.7 20.6% Other Income 7.0 1.2 3.7 9.9 12.5 Fatty Alcohol prices in Total Revenue 981.5 1,054.1 -6.9% 1,084.0 -9
Slide 10: Consolidated Balance Sheet
Consolidated Balance Sheet Particulars (Rs. In Crores) Mar'23 Mar’22 Particulars (Rs. In Crores) Mar'23 Mar’22 ASSETS EQUITY AND LIABILITIES Property, Plant and Equipment 773.4 609.2 EQUITY Right-of-use assets 141.9 143.0 Equity Share Capital 35.5 35.5 Capital work-in-progress 139.2 205.5 Other Equi
Slide 11: Consolidated Cash Flow
Consolidated Cash Flow Particulars (Rs. In Crores) Mar'23 Mar'22 Cash Flow From Operating Activities : Profit After Tax 381.0 262.8 Operating Profit before working Capital changes 577.9 409.4 Net cash flows generated from/(used) in Operating Activities (A) 573.0 4.9 Net cash flows generated from/(us
Slide 12: Standalone Profit & Loss Statement
Standalone Profit & Loss Statement Particulars (Rs. In Crores) Q4FY23 Q4FY22 Y-o-Y Q3FY23 Q-o-Q FY23 FY22 Y-o-Y Net Revenue from Operations 677.4 792.7 -14.5% 760.7 -10.9% 3,159.3 2,628.6 20.2% Other Income 2.7 -17.6 -2.8 -6.0 -1.2 Total Revenue 680.2 775.2 -12.3% 757.9 -10.3% 3,153.3 2,627.4 20.0%
Slide 13: Standalone Balance Sheet
Standalone Balance Sheet Particulars (Rs. In Crores) Mar'23 Mar’22 Particulars (Rs. In Crores) Mar'23 Mar’22 ASSETS EQUITY AND LIABILITIES Property, Plant and Equipment 526.3 383.8 EQUITY Right-of-use assets 98.4 98.5 Equity Share Capital 35.5 35.5 Capital work-in-progress 84.5 178.2 Other Equity 1,
Slide 14: Standalone Cash Flow
Standalone Cash Flow Particulars (Rs. In Crores) Mar'23 Mar'22 Cash Flow From Operating Activities : Profit After Tax 214.0 133.9 Operating Profit before working Capital changes 358.0 239.6 Net cash flows generated from/(used) in Operating Activities (A) 330.6 46.2 Net cash flows generated from/(use
Slide 15: Business Overview
Business Overview 14
Slide 16: 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 17: …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 90 Approved; 16 Applied 5 in India, 1 in Egyp
Slide 18: 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 19: 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 20: 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 21: Consumer Benefits
… 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 22: 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 23: 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* FY23: Revenue Breakup Manufacturing ✓ India: Parent Entity R&D 29% Manuf
Slide 24: "Consumer to Chemistry": Creation of Products
“Consumer to Chemistry”: Creation of Products 90 approved Patents and 16 applied Idea Stage INDIA USA GLOBALLY EUROPE ROW Applied Feasibility Stage 22 20 4 9 16 Granted 9 New product 90 Patents 16 Patent grades, Patents in Capability Stage since 2000 applied process, FY23 (4 in India) efficiencies P
Slide 25: …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 26: 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 27: 1,380+ Clients across 80+ Countries
1,380+ 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 28: Certifications
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 29: ESG Initiatives
ESG Initiatives 28
Slide 30: 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 31: Certified as 1.4X water positive
Galaxy Surfactants Ltd. has been certified as 1.4X water positive Because businesses thrive only when communities thrive 30
Slide 32: 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 33: 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 34: 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 35: 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 34
Slide 36: 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 37: 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 38: 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 39: Growth Strategy
Growth Strategy 38
Slide 40: 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 41: 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 42: Financial Performance
Financial Performance 41
Slide 43: 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 44: 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 45: 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 0.3 0.4 0.2 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 Capital
Slide 46: 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