Galaxy Surfactants Ltd. · NSE:GALAXYSURF
Galaxy Surfactants — Q1 FY2021 Earnings Presentation
40 slides from Galaxy Surfactants's earnings presentation, Aug 11, 2020
Slide 1: Galaxy Surfactants Limited Investor Presentation - August 2020
Galaxy Surfactants Limited Investor Presentation - August 2020
Slide 2: 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 3: Q1FY21 Performance Highlights
Q1FY21 Performance Highlights 3
Slide 4: Q1FY21: Key Developments
Q1FY21: Key Developments AMET Market outperformed on the back of strong growth registered by the local Egypt Market Month on Month situation has been improving in India and ROW Markets, with June being the strongest Demand visibility for performance surfactants remains robust. Specialty Care busines
Slide 5: Volume: Q1FY21 Highlights (YoY)
Volume: Q1FY21 Highlights (YoY) Performance Surfactants Specialty Care Products Total Volume +7.8% -26.2% -5.2% 36,397 20,996 54,767 51,893 33,771 15,496 Volume Highlights Q1FY20 Q1FY21 Q1FY20 Q1FY21 Q1FY20 Q1FY21 India Market de-grew by 2.3% Africa Middle East Turkey grew by 10.2% Rest of the World
Slide 6: Revenue Highlights Q1FY21 (YoY)
Q1FY21 Highlights (YoY) Performance Surfactants Specialty Care Products Total Revenue^ +11.5% -39.1% -8.8% 446 266 666 400 608 162 Revenue Highlights Q1FY20 Q1FY21 Q1FY20 Q1FY21 Q1FY20 Q1FY21 EBITDA^ PAT +7.5% -6.4% 97 91 53 56 Rs. In Crores Q1FY20 Q1FY21 Q1FY20 Q1FY21 ^Includes other Income 6
Slide 7: Consolidated Profit & Loss Statement
Consolidated Profit & Loss Statement Particulars (Rs. In Crores) Q1FY21 Q1FY20 Y-o-Y Q4FY20 Q-o-Q FY20 Net Revenue from Operations 607.2 665.0 -8.7% 656.7 -7.5% 2596.4 Other Income 0.7 1.3 0.0 5.9 Total Revenue 607.8 666.3 -8.8% 656.7 -7.4% 2602.3 Cost of Material Consumed 399.5 442.8 417.8 1715.3 D
Slide 8: Standalone Profit & Loss Statement
Standalone Profit & Loss Statement Particulars (Rs. In Crores) Q1FY21 Q1FY20 Y-o-Y Q4FY20 Q-o-Q FY20 Net Revenue from Operations 359.8 470.7 -23.6% 434.0 -17.1% 1793.1 Other Income 2.3 -1.1 1.4 5.4 Total Revenue 362.0 469.6 -22.9% 435.4 -16.8% 1798.5 Cost of Material Consumed 238.9 317.4 281.1 1198.
Slide 9: Business Overview
Business Overview 9
Slide 10: 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 11: …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 72 Approved; 14 Applied 5 in India, 1 in Egyp
Slide 12: 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 13: 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 14: 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 15: Consumer Benefits: over 205+ Product Offerings
… 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 16: 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 17: 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 69 Headquarters Egypt Galaxy Marketing office ✓ Chemicals (Egypt) S.A.E. India Egypt:100% owned* FY20: Revenue Breakup Manufacturing ✓ India: Paren
Slide 18: “Consumer to Chemistry”: Creation of Products
“Consumer to Chemistry”: Creation of Products 72 approved Patents and 14 applied Idea Stage INDIA USA GLOBALLY EUROPE ROW Applied Feasibility Stage 16 17 4 8 14 Rs. 8 crs New product 72 Patents 14 Patent incurred to grades, since 2002 application Capability Stage pending enhance the process, R&D set
Slide 19: …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 20: 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 21: 1750+ Clients across 80+ Countries
1750+ 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 22: Awards & Certifications: True recognition of Capabilities
Awards & Certifications: True recognition of Capabilities “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
Slide 23: Accolades Received during FY20
Accolades Received during FY20 Company won the Gold award for its innovative product TiLS (G) - An oil soluble surfactant at the HPCI Mumbai Conference 2020 • The Company has been Won the “Excellent Use of certified for the 2nd time IP in Innovation” Award at as Great Place to Work - the IP Summit &
Slide 24: Management Team on Board
Management Team on Board Mr. Unnathan Shekhar Promoter, Managing Director •Associated with Company since 1986 •Chemical Engineer, PGDM from IIM, Calcutta Mr. Natarajan K. Krishnan Mr. Kasargod Ganesh Kamath Executive Director, Chief Operating Officer Executive Director (Finance), Chief Financial Off
Slide 25: Along with Guidance of Senior Board Members
Along with Guidance of Senior Board Members Mr. Shekhar Ravindranath Warriar Chairman, Non-Executive Independent Director •Associated with Company since 2007 •More than 30 years with Unilever, India in various capacities Mr. Subodh S. Nadkarni Mr. Gopalkrishnan Ramakrishnan Mr. Shashikant R. Shanbha
Slide 26: 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 27: Growth Strategy
Growth Strategy 27
Slide 28: 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 29: 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 30: Financial Performance
Financial Performance 30
Slide 31: 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 1,600 77.00 1,500 75.00 1,400 73.00 1,300 71.00 1,200 69.00 1,100 67.00 1,000 65.00 LA Price USDINR … through Robust Risk Management Practices Source: Market Prices – ICIS – LO
Slide 32: Volume: FY20 Highlights (YoY)
Volume: FY20 Highlights (YoY) Performance Surfactants Specialty Care Products Total Volume +6.0% +1.7% +4.4% 1,35,337 1,43,521 79,374 80,716 2,14,711 2,24,237 Volume Highlights FY19 FY20 FY19 FY20 FY19 FY20 India Market grew by 0.5% Africa Middle East Turkey grew by 9.4% Rest of the World grew by 2.
Slide 33: Revenue Highlights FY20 (YoY)
FY20 Highlights (YoY) Performance Surfactants Specialty Care Products Total Revenue^ -8.8% -1.1% -6.0% 1,741 1,027 1,015 2,768 2,602 1,587 Revenue Highlights FY19 FY20 FY19 FY20 FY19 FY20 EBITDA^ PAT +4.7% +20.6% 358 375 230 191 Rs. In Crores FY19 FY20 FY19 FY20 As per Ind AS ^Includes other Income
Slide 34: Our Performance Highlights
Our Performance Highlights Revenue^ (Rs. In Crs) EBITDA^ (Rs. In Crs) PAT (Rs. In Crs) +7% 2,768 2,602 +14% 375 230 358 +28% 2,444 191 2,172 282 298 1,875 1,807 238 148 158 192 101 68 FY15 FY16 FY17* FY18* FY19* FY20* FY15 FY16 FY17* FY18* FY19* FY20* FY15 FY16 FY17* FY18* FY19* FY20* EBITDA per ton
Slide 35: Our Balance Sheet Strength
Our Balance Sheet Strength Debt/ Equity (x) Return on Equity (%) 1.1 28.8% 0.9 25.2% 24.4% 23.9% 24.7% 20.4% 0.7 0.5 0.3 0.4 FY15 FY16 FY17* FY18* FY19* FY20* FY15 FY16 FY17* FY18* FY19* FY20* Cash Flow from Operating Activities Return on Capital Employed (%) (Rs in cr) 316 283 26.8% 25.2% 23.9% 22.
Slide 36: Consolidated Balance Sheet
Consolidated Balance Sheet Particulars (Rs. In Crores) Mar'20 Mar’19 Particulars (Rs. In Crores) Mar'20 Mar’19 ASSETS EQUITY AND LIABILITIES Property, Plant and Equipment 623.9 511.2 EQUITY Right-of-use assets 115.7 - Equity Share Capital 35.5 35.5 Capital work-in-progress 66.0 82.6 Other Equity 1,0
Slide 37: Consolidated Cash Flow Statement
Consolidated Cash Flow Statement Particulars (Rs. In Crores) 31-Mar-20 31-Mar-19 Cash Flow From Operating Activities : Profit After Tax 230.4 191 Adjustments for noncash items 143 165.8 Operating Profit before working Capital changes 373.4 356.8 Working capital adjustments 11.3 1.1 Cash flows genera
Slide 38: Standalone Balance Sheet
Standalone Balance Sheet Particulars (Rs. In Crores) Mar'20 Mar’19 Particulars (Rs. In Crores) Mar'20 Mar’19 ASSETS EQUITY AND LIABILITIES Property, Plant and Equipment 369.6 354.2 EQUITY Capital work-in-progress 61.4 40.2 Equity Share Capital 35.5 35.5 Right of use Asset 102.4 0.0 Other Equity 854.
Slide 39: Standalone Cash Flow Statement
Standalone Cash Flow Statement Particulars (Rs. In Crores) 31-Mar-20 31-Mar-19 Cash Flow From Operating Activities : Profit After Tax 182.2 168.5 Adjustments for noncash items 102.3 99.4 Operating Profit before working Capital changes 284.5 267.8 Working capital adjustments -14.6 40.2 Cash flows gen
Slide 40: Thank You
Thank Company : Investor Relations Advisors : You CIN No: L39877MH1986PLC039877 CIN - U74140MH2010PTC204285 Mr. Paritosh Srivastava Ms. Neha Shroff / Mr. Mandar Chavan Email: Paritosh.Srivastava@galaxysurfactants.com neha.shroff@sgapl.net / mandar.chavan@sgapl.net www.galaxysurfactants.com +91 77380