Conference Call with Neogen Chemicals Management and Analysts on Q1FY25 Performance and Outlook. Listen to the full earnings transcript.
Speciality Chemicals company Neogen Chemicals announced Q1FY25 results: In Q1FY25, revenue was higher by 9% to Rs 180.0 crore despite challenging operating scenario. EBITDA stood at Rs 30.8 crore, an increase of 10% YoY. This improved despite higher employee costs and other expenses, in-line with capacity build up efforts in Neogen Ionics. Margins were maintained at 17.1% YoY led by operational efficiencies, even as pricing pressures continued across key products. Profit after Tax (PAT) grew by 18% to Rs 11.5 crore. PAT performance reflects the strong operating trend, further boosted by lower tax rate. Depreciation and interest expenses are expected to rise with accelerated CAPEX trajectory in Battery Chemicals. Earnings per share (EPS) for Q1FY25 stood at Rs 4.35 per share (Rs. 3.92 per share in Q1FY24). Commenting on the Q1FY25 performance, Haridas Kanani, Chairman & Managing Director, Neogen Chemicals said: “We are pleased to report 9% revenue growth and 18% PAT improvement this quarter. This was driven by gradual demand recovery with better volumes amid soft pricing. Effective supply chain management amidst logistical challenges strengthened customer relationships. Both BuLi Chem and Neogen Ionics contributed positively to the overall consolidated performance. Our growth initiatives are on track, with initial capacities for Lithium Electrolyte Salts and Electrolytes now operational. We are shipping Lithium Saltsto global customers commercially, while Electrolytes are in trial production with commercial quantities aligned with upcoming cell production capacities in India. These efforts provide valuable market insights for our upcoming greenfield plant using MUIS technology, where construction has commenced. I am glad to share that we are one of the first companies in India whose Electrolyte supplied from the commercial plant is meeting global standards. We are proud to support India’s efforts for self-reliance in Lithium-ion battery manufacturing. To mitigate current agchem market challenges in the existing business, we are looking at nonagchem opportunities until the global agchem market recovers and remain confident of achieving Rs 900-1,000 crore in revenues in FY26 based on anticipated recovery in the later half of this financial year. We are steadily recovering from the ongoing macro challenges and anticipate stronger growth going ahead. Notwithstanding the current operating environment, we believe that Indian chemical industry is on the cusp of exponential growth in the long run. Neogen Chemicals will pursue all avenues to outperform and create enduring value for its stakeholders.” Result PDF