- 08 Aug 2022
- ICICIdirect Research
Neogen reports Q1FY23 results
NEOGEN - 1488 Change: -27.30 (-1.80 %)News: Neogen numbers were better than our estimates on the revenues front, but margins were below our estimates. Revenues grew 74.7% YoY to Rs147.9 crores against our expectations of Rs134.1 crores, driven mainly by ramp up in dahej plant for the organic chemical segment. Gross margins were down by 20bps YoY to 44.8% to Rs66.2 crores. OPM for the quarter fell by 180 bps YoY to 16.7% impacted by higher RMAT cost (+76% YoY), leading to EBITDA growth of 58% YoY to 24.7 crores against our estimates of Rs24 crores. PAT was up by 50% YoY to Rs11.1 crores as against our estimates of Rs12 crores, driven by higher taxes (29% v/s 16.6% in Q4FY22).
View: Commissioning of both phases at Dahej is likely to maintain growth tempo in organic chemical business in general and custom synthesis in particular. We remain positive on company's lomg drawn plans with fouced capex based approach.
Impact: Positive.