Commencing operations in 1991, Neogen Chemicals manufactures specialty organic bromine-based chemical compounds as well as specialty inorganic lithium-based chemicals compounds.
The company’s products find application in pharmaceutical intermediates, agrochemical intermediates, engineering fluids, polymers additives and water treatment chemicals, to name a few
Neogen has two segments viz. (i) organic chemicals, (ii) inorganic chemicals of which organic chemical constitute ~80% of overall revenue while the rest comes from inorganic chemicals
Q3FY23
Numbers were marginally in line with our estimates on the revenue front while EBITDA came in below estimates due to lower GPM.
Reported revenue growth of 40% YoY to ₹ 186.3 crore, led by higher growth from both organic chemicals ₹ 136 crore (up 29% YoY) and inorganic chemicals ₹ 50.3 crore (up 86% YoY)
Gross margins fell 91 bps YoY to 43.2% while EBITDA margin declined 177 bps YoY to 16.2%. Absolute EBITDA was up 27% YoY to ₹ 30.1 crore
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”
Neogen Chemicals Limited was incorporated as a Private Limited Company with the name `Neogen Chemicals Private Limited` on March 7, 1989 in Thane, Maharashtra. Subsequently, Company was converted to a Public Limited Company and the name of the Company was changed to `Neogen Chemicals Limited` on July 2, 1998.
Neogen is one of India`s leading manufacturers of bromine-based compounds, lithium and bromine salts and grignard chemicals. Specialty chemicals are those chemicals that impart different properties to a variety of products (i.e. the effect that specialty chemicals have varies based on the product) and have a high degree of value addition. Specialty chemicals are manufactured in smaller volumes when compared to non-specialty chemicals. Specialty chemicals, including bromine and lithium-based compounds, comprise pharmaceutical intermediates, agrochemical intermediates, engineering fluids, electronic chemicals, polymers additives, water treatment chemicals, construction chemicals and flavours and fragrances.
The Company commenced its business operations in 1991, at Mahape, in Navi Mumbai manufacturing facility with a few Bromine Compounds and Lithium Compounds. In addition to manufacturing its standard products, the company undertakes custom synthesis and contract manufacturing. In custom synthesis the product is developed and customized primarily for a specific customer, but process know-how and technical specifications are developed in-house by the company. Further, it also commenced contract manufacturing where, the product is developed under confidentiality for a single customer using the process know-how and the technical specifications provided by customer. Contract manufacturing enabled to increase its bouquet of product offering. The Company differentiates itself in the contract manufacturing space by additionally offering process innovation, which, generally, reduces the overall operating costs for their customers.
The Company operates out of its manufacturing facilities located in Mahape, Navi Mumbai in Maharashtra (Mahape Facility) and Karakhadi, Vadodara in Gujarat (Vadodara Facility). Company is, presently, developing a green-field manufacturing unit in Dahej SEZ, in Gujarat (Proposed Dahej Facility).
In April 2019, the Company came out with an Initial Public Offering of 6,155,813 equity shares by raising equity capital from public aggregating Rs 132.35 Crores. The offer comprises of a fresh issue of 3,255,813 equity shares aggregating Rs 70 crores by the company and an offer for sale of 1,699,600 equity shares by Haridas Thakarshi Kanani (promoter selling shareholder) and 1,200,400 equity shares by Beena Haridas Kanani (promoter group selling shareholder, and along with the promoter selling shareholder aggregating Rs 62.35 Crores.
The Company started the Organic Chemical production at Dahej SEZ (Gujarat) in April 2021. The aggregate manufacturing capacity of Inorganic Chemicals was doubled to 2,400 MT p.a. after the commencement of its operations in Feb 2020.
In 2021-22, the Company began with Phase I and Phase II commercial operations of Organic Chemicals at full scale at Dahej SEZ plant. With completion of Phase I and Phase II Expansions and other brownfield expansions, the total organic chemicals manufacturing capacity of the Company increased from 130 Kilo litres of Reactor capacity to 407 Kilo litres of Reactor capacity.
The Company acquired 100% stake in BuLi Chemicals India Private Limited and it became the wholly-owned subsidiary of the Company in 2023. The Company forayed into the electrolyte market by signing an agreement with Japan-based MU Iconic Solutions Corporation to acquire a manufacturing technology licence to make electrolytes for lithium-ion batteries for vehicles in India. The Company further incorporated a Wholly Owned Subsidiary of the Company on March 29, 2023, named "Neogen Ionics Limited".
Neogen Chemicals Limited was incorporated as a Private Limited Company with the name `Neogen Chemicals Private Limited` on March 7, 1989 in Thane, Maharashtra. Subsequently, Company was converted to a Public Limited Company and the name of the Company was changed to `Neogen Chemicals Limited` on July 2, 1998.
Neogen is one of India`s leading manufacturers of bromine-based compounds, lithium and bromine salts and grignard chemicals. Specialty chemicals are those chemicals that impart different properties to a variety of products (i.e. the effect that specialty chemicals have varies based on the product) and have a high degree of value addition. Specialty chemicals are manufactured in smaller volumes when compared to non-specialty chemicals. Specialty chemicals, including bromine and lithium-based compounds, comprise pharmaceutical intermediates, agrochemical intermediates, engineering fluids, electronic chemicals, polymers additives, water treatment chemicals, construction chemicals and flavours and fragrances.
The Company commenced its business operations in 1991, at Mahape, in Navi Mumbai manufacturing facility with a few Bromine Compounds and Lithium Compounds. In addition to manufacturing its standard products, the company undertakes custom synthesis and contract manufacturing. In custom synthesis the product is developed and customized primarily for a specific customer, but process know-how and technical specifications are developed in-house by the company. Further, it also commenced contract manufacturing where, the product is developed under confidentiality for a single customer using the process know-how and the technical specifications provided by customer. Contract manufacturing enabled to increase its bouquet of product offering. The Company differentiates itself in the contract manufacturing space by additionally offering process innovation, which, generally, reduces the overall operating costs for their customers.
The Company operates out of its manufacturing facilities located in Mahape, Navi Mumbai in Maharashtra (Mahape Facility) and Karakhadi, Vadodara in Gujarat (Vadodara Facility). Company is, presently, developing a green-field manufacturing unit in Dahej SEZ, in Gujarat (Proposed Dahej Facility).
In April 2019, the Company came out with an Initial Public Offering of 6,155,813 equity shares by raising equity capital from public aggregating Rs 132.35 Crores. The offer comprises of a fresh issue of 3,255,813 equity shares aggregating Rs 70 crores by the company and an offer for sale of 1,699,600 equity shares by Haridas Thakarshi Kanani (promoter selling shareholder) and 1,200,400 equity shares by Beena Haridas Kanani (promoter group selling shareholder, and along with the promoter selling shareholder aggregating Rs 62.35 Crores.
The Company started the Organic Chemical production at Dahej SEZ (Gujarat) in April 2021. The aggregate manufacturing capacity of Inorganic Chemicals was doubled to 2,400 MT p.a. after the commencement of its operations in Feb 2020.
In 2021-22, the Company began with Phase I and Phase II commercial operations of Organic Chemicals at full scale at Dahej SEZ plant. With completion of Phase I and Phase II Expansions and other brownfield expansions, the total organic chemicals manufacturing capacity of the Company increased from 130 Kilo litres of Reactor capacity to 407 Kilo litres of Reactor capacity.
The Company acquired 100% stake in BuLi Chemicals India Private Limited and it became the wholly-owned subsidiary of the Company in 2023. The Company forayed into the electrolyte market by signing an agreement with Japan-based MU Iconic Solutions Corporation to acquire a manufacturing technology licence to make electrolytes for lithium-ion batteries for vehicles in India. The Company further incorporated a Wholly Owned Subsidiary of the Company on March 29, 2023, named "Neogen Ionics Limited".
Neogen Chemicals share price as on 17 Jul 2024 is Rs. 1624.75. Over the past 6 months, the Neogen Chemicals share price has increased by 8.72% and in the last one year, it has decreased by 0.33%. The 52-week low for Neogen Chemicals share price was Rs. 1176 and 52-week high was Rs. 1859.3.
You can buy Neogen Chemicals Ltd shares through a brokerage firm. ICICIdirect is a registered broker through which you can place orders to buy Neogen Chemicals Ltd Share.
Company share prices and volatile and keep changing according to the market conditions. As of Jul 16, 2024 03:57 PM the closing price of Neogen Chemicals Ltd was Rs.1,624.75.
Market capitalization or market cap is determined by multiplying the current market price of a company's shares with the total number of shares outstanding. As of Jul 16, 2024 03:57 PM, the market cap of Neogen Chemicals Ltd stood at Rs. 4,286.42 Cr.
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