Specialty Chemicals company Neogen Chemicals announced Q2FY25 results In Q2FY25, revenue was higher by 20% to Rs 193 crore fueled by increased volumes in the core business, coupled with incremental contribution from BuLi Chem. EBITDA stood at Rs 35 crore, an increase of 33% YoY. Profit after Tax (PAT) grew by 38% to Rs 11 crore. Earnings per share (EPS) for Q2FY25 stood at Rs 4.15 per share (Rs. 3.17 per share in Q2FY24). Haridas Kanani, Chairman & Managing Director, Neogen Chemicals, said: “We have delivered a strong performance during the period under review amid a challenging backdrop of events marked by soft demand, oversupply situation, geopolitical tensions and inflationary pressures, which have eroded industry’s pricing power and profitability. Our 20% revenue improvement and 38% PAT growth in Q2FY25 is a testament to our team's unwavering dedication, adaptability, and ability to navigate challenging market conditions. Volume gains in the base business as well as contributions from BuLi Chem and Neogen Ionics fostered consolidated performance. Through Neogen Ionics, we are making deep inroads in the Battery Materials business. Through our collaborative efforts, we have developed and exchanged multiple recipes of Electrolyte & Lithium Salt combinations with our customers. While doing so, we have gained valuable insightsinto the technological capabilities and market expertise. Our pilot production lines are currently manufacturing and shipping commercial trial lots, while the initial commercial production facilities are operational and fulfilling early market demand. Stringent quality standards are being maintained through strict adherence to safety protocols. The construction of our dedicated greenfield Battery Materials plant in Dahej using MUIS technology license is advancing steadily & remains on expected timelines. We are strategically phasing the commissioning process aligning with Battery capacities coming in India. While we anticipate a potential demand recovery later in FY25, we are committed to investing in our long-term growth strategy to secure our future. In the face of global economic uncertainty, we at Neogen Chemicals are adapting to changing conditions, and remain steadfast in our commitment to growth, innovation, and delivering value to ourstakeholders.” Result PDF
Conference Call with Neogen Chemicals Management and Analysts on Q2FY25 Performance and Outlook. Listen to the full earnings transcript.
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