Conference Call with Neogen Chemicals Management and Analysts on Q4FY24 Performance and Outlook. Listen to the full earnings transcript.
Speciality Chemicals company Neogen Chemicals announced Q4FY24 & FY24 results: Q4FY24 Financial Highlights: Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA): EBITDA increased by 10% to Rs 36 crore. Profit Before Tax (PBT): PBT saw a growth of 8% reaching Rs 22 crore. Profit After Tax (PAT): PAT grew by 18%, amounting to Rs 17 crore. Earnings Per Share (EPS): EPS stood at Rs 6.42 per share, compared to Rs 5.74 per share in Q4FY23. FY24 Financial Highlights: Revenue remained at Rs 691 crore despite a significant decrease in raw material prices. Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA): EBITDA stood at Rs 110 crore, marginally down by 1% with an EBITDA Margin of 16%. Profit Before Tax (PBT): PBT experienced a decrease of 26%, concluding at Rs 53 crore. Profit After Tax (PAT): PAT was down by 29%, ending the year at Rs 36 crore. Commenting on the Q4FY24 performance, Haridas Kanani, Chairman & Managing Director, Neogen Chemicals said, “Financial Year 2024 marked a significant milestone for Neogen Chemicals as we embarked on an accelerated growth trajectory, establishing a robust foundation to fuel India’s growing EV ecosystem. Strategic initiatives undertaken during the year such as acquisition of BuLi Chem, licensing agreement with MUIS, equity raise through preferential route and land acquisition by Neogen Ionics, were all aligned to position us for the future and accelerate our growth agenda. I want to express my appreciation to the entire Neogen family for their commitment and dedicated efforts to our shared goal and being part of this dynamic journey. Our performance during the year mirrors the persistent global challenges experienced by industry, which had a detrimental effect on demand. This includes cheap dumping in India, inventory adjustments, military escalations, and logistical crisis, among others Our adaptable business model and manufacturing prowess enabled us to navigate through these obstacles and deliver a resilient performance. We are making considerable progress in establishing our greenfield Battery Materials project. The plant design using MUIS, Japan technology has already been finalised and we have started issuing the PO’s. Construction work is expected to commence shortly, as we stay on track to commission this facility by H2 of FY2026. Once operational, it will position us as an important partner for EV battery manufacturers in the country. In the interim, we are building initial commercial capacities for both Electrolytes and Lithium Electrolyte Salts for immediate needs of the customers I am happy to share that we have started shipping small batches of Lithium Electrolyte Salts to global customers and Electrolytes to local customers, and the feedback regarding quality and efficacy has been positive. Despite several macro challenges in the previous year, we foresee the present year to be more promising, considering the current pace of recovery. Our overarching goal is to capitalize on our fundamental strengths across multiple chemistries to consistently enhance value for all our stakeholders” Result PDF