Neogen Chemicals announced Q2FY24 results: In Q2FY24, revenue was Rs 161.7 crore, with a growth of 9% YoY. This was achieved despite the challenging external environment aggravated by global inventory destocking, the slowdown in key export markets, and geopolitical uncertainties among others. Recent capacity expansions, stable demand, and contributions from BuLi Chem supported the growth momentum. EBITDA at Rs 25.9 crore was higher by 7% YoY. Growth in profitability was reflected by an improved product mix and a reduction in key input and RM costs. Profit after tax (PAT) stood at Rs 7.9 crore, lower by 20% YoY compared to Rs 9.9 crore in Q2FY23. PAT was lower due to higher finance costs and depreciation related to ongoing CAPEX initiatives undertaken by the Company. Strategic debt repayment from recent preference share proceeds will help lower the finance expenses in the near term. Earnings per share (EPS) for Q2FY24 stood at Rs 3.17 per share (Rs. 3.95 per share in Q2FY23). Commenting on the Q2FY24 performance, Haridas Kanani, Chairman & Managing Director, Neogen Chemicals said, “I am pleased to share that we have maintained a consistent performance despite persistent external headwinds that have adversely impacted the end-user demand. We achieved a 9% growth in revenues along with a 7% improvement in EBITDA on a YoY basis. Positive contributions from recently acquired BuLi Chem, rationalisation of key RM & input costs, along with efficient inventory management were notable drivers of performance during the quarter. In a significant development, we recently raised ~Rs 253 crore through preferential allotment to leading institutional investors. I would like to express my appreciation for the trust placed in us and the support extended toward our future growth endeavors. We will carefully deploy these funds to establish a strong presence in the Battery Materials space while sustaining the growth momentum in the existing business. We are rapidly progressing along the outlined growth path. BuLi Chem has started contributing and also achieved break-even. This will further ramp up as we move along. The contribution from value-added products is also increasing, and our endeavor is to add more complex products by leveraging our R&D; expertise and manufacturing capabilities. Our efforts related to Battery Materials are advancing successfully. Our project using MUIS technology is evolving positively, and we are on schedule to finalize the design work by the end of this year. Our interactions with key customers for both Lithium Electrolyte Salts and Electrolytes are making good progress, and we are seeing strong interest from international customers, especially for Electrolyte Salts. We are confident of garnering a significant share as the transition to EVs gains momentum. Overall, we are well poised to capitalize on the upcoming opportunities. Building upon the solid foundation, we remain steadfast in our pursuit to not only elevate our performance momentum but also consistently enhance value for our stakeholders.” Result PDF
Conference Call with Neogen Chemicals Management and Analysts on Q1FY24 Performance and Outlook. Listen to the full earnings transcript.
Conference Call with Neogen Chemicals Management and Analysts on Q4FY23 Performance and Outlook. Listen to the full earnings transcript.
Specialty Chemicals company Neogen Chemicals announced FY23 results: In FY23, revenues were at Rs 686.2 crore, with a growth of 41% YoY EBITDA at Rs 111.6 crore in FY23 was higher by 29% on account of a positive mix change in the business Profit after tax (PAT) stood at Rs 50.0 crore during FY23, higher by 12% compared to Rs 44.6 crore in FY22 Earnings per share (EPS) for FY23 stood at Rs 20.03 per share (Rs. 18.70 per share in FY22) The Board has recommended a final dividend of Rs 3 per equity share for FY23 (Rs. 2.75 per equity share in FY22) subject to the approval of the shareholders Collective CAPEX for all the new projects is ~Rs 450 crore Debt to Equity will continue to remain below 1.25x Commenting on the Q4FY23 & FY23 performance, Haridas Kanani, Chairman & Managing Director, Neogen Chemicals said: “I am happy to share that we have concluded the year on a strong note despite challenging operating scenario aggravated by continued volatility in input costs, disruption of global supply chains due to Russia Ukraine conflict and variations in foreign exchange rates among others. Amid all these headwinds, we demonstrated solid financial performance in FY23 steered by 41% growth in revenues and 29% expansion in EBITDA. More importantly, we reported the Highest-Ever revenues and PAT in the Company’s history propelled by a positive demand environment, the onset of several expansion initiatives, and the augmentation of the product portfolio. This is a testament of our commitment and perseverance towards building a solid foundation for the future. FY23 was a momentous year for Neogen Chemicals as we charted ambitious growth plans for both existing as well as Battery Chemicals business and saw a lot of these initiatives take concrete shape. On one hand, we acquired 100% stake in BuLi Chemicals India Private Limited (“Buli Chem”) to strengthen our product offerings while on the other hand, we signed a landmark agreement with MUIS, Japan to acquire a manufacturing technology license for electrolytes in India. Both these events will significantly bolster our competitive position in the market and lay the roadmap for the future. We have markedly expanded our R&D; prowess across several high-potential chemistries to offer deep value to our customers. Initiatives under the Battery Chemicals business are progressing well, and we are on track to achieve several milestones as per our internal forecasts. The roadmap appears equally encouraging and we are ready to march to the next leg of growth that will demonstrate our manufacturing capabilities at scale as well as expertise in several complex chemistries. The industry is supportive, and the demand scenario continues to be favourable. Our objective is to continue on this profitable growth journey and deliver sustained value for our stakeholders.” Result PDF