Neogen Chemicals Ltd. · NSE:NEOGEN
Neogen Chemicals — Q4 FY21 Earnings Presentation
24 slides from Neogen Chemicals's earnings presentation, May 29, 2021
Slide 1: Exchange filing cover letter
May 29, 2021 BSE Limited National Stock Exchange of India Limited Department of Corporate Services Listing Department, Floor 25, Phiroze Jeejeebhoy Towers, Exchange Plaza, Dalal Street, Kala Ghoda, Fort Bandra Kurla Complex, Bandra (East), Mumbai 400 001 Mumbai – 400 051 Scrip Code No: 542665 Compan
Slide 2: Neogen Chemicals Ltd. Q4 & FY21 Earnings Presentation
Neogen Chemicals Ltd. Q4 & FY21 Earnings Presentation May 2021
Slide 3: Safe Harbour
Safe Harbour 2 Certain statements in this document may be forward-looking statements. Such forward looking statements are subject to certain risks and uncertainties like regulatory changes, local political or economic developments, and many other factors that could cause our actual results to differ
Slide 4: Table of Contents
Table of Contents 3 4 11 12 19 20 21 22 30 Introduction Q4 & FY21 Historical Competitive Management Way to Neogen Financial Financial Contact Us Advantages Commentary Forward Chemicals Performance Trends
Slide 5: Neogen Chemicals – At a Glance
Neogen Chemicals – At a Glance 4 Leading manufacturer of Bromine and Lithium-based specialty chemicals, operating since 1991 Products developed Of workforce in Strong portfolio of Organic and Inorganic products by in-house R&D R&D team Customers across multiple industries including Pharma, Engineeri
Slide 6: Evolution of Neogen Chemicals
Evolution of Neogen Chemicals 5 1970’s to 1991 1991 to 2016 2016 to 2020 Pre-Neogen Pre-expansion Present o Mr. HT Kanani graduated as a Chemical o ‘Neogen Chemicals’ commenced business o Acquired 12 acres of land in Dahej for Greenfield Engineer and started his association with operations in 1991,
Slide 7: Key Milestones
Key Milestones 6 Leading manufacturer of Bromine and Lithium-based specialty chemicals since 1989 1989 1991 1994 1998 2000 2001 2007 2012 2015 2016 2017 2019 2020 Started Conversion to Started Increased Achieved Raised Rs. 132 operations public limited manufacturin reactor turnover of crore through
Slide 8: Business Overview and Clientele
Business Overview 7 Organic Chemicals Inorganic Chemicals The portfolio includes specialty, inorganic Custom Synthesis & Contract lithium-based chemical products which Bromine Compounds Advanced Intermediates Manufacturing find applications across multiple industries Organic compounds containing Com
Slide 9: Robust Manufacturing Expertise
Robust Manufacturing Expertise 8 Strong Manufacturing Infrastructure – Factory Land Area Land Utilisation Capacity 45,000 GLR Litres (Bromine) Mahape (Since 1991) 1.5 acres 100% 1,200 MT (Lithium) Vadodara (Since 2017) 40 acres 20% 85,400 GLR Litres (Bromine) 1,200 MT (Lithium) Dahej (Since 2020) 12
Slide 10: Developed strong R&D capabilities
Developed strong R&D capabilities 9 Post Developed Believes that commissioning of Established 37 member R&D is critical dedicated R&D two in-house dedicated R&D for sustained CMD and MD units in 2001, the R&D units, one team, including growth and will are actively product portfolio each in Mahape fi
Slide 11: Experienced Leadership Team
Experienced Leadership Team 10 Mr. Haridas Kanani, B.TECH (CHEM) M.I.I.Ch.E. Mr. Harin Kanani, PhD Chairman & Managing Director Managing Director o Holds a bachelor’s degree in chemical engineering from the Indian Institute of o Holds a bachelor’s degree in chemical engineering from IIT, Bombay and
Slide 12: Competitive Advantages
Competitive Advantages 11 Large and diverse array of products Strong Manufacturing Capabilities Experienced promoters with domain knowledge Diversified and Stable Established and stable Customer Base relationship with suppliers Specialised Business Model Continuous Investment with high entry barrier
Slide 13: Key Performance Highlights – Q4 & FY21
Key Performance Highlights – Q4 & FY21 12 Q4 FY21 FY21 Rs. 93 crore 13% Rs. 336 crore 10% Revenues Q4 FY21 Revenue break-up Rs. 19 crore 17% Rs. 64 crore 11% EBITDA *Exports Domestic 47% 53% Rs. 13 crore 18% Rs. 44 crore 8% Profit Before Tax Rs. 9 crore 27% Rs. 31 crore 9% *Including deemed exports
Slide 14: Financial Summary – FY21
Financial Summary –FY21 13 REVENUE EBITDA PAT 336.4 64.4 31.4 306.1 58.1 28.8 FY20 FY21 FY20 FY21 FY20 FY21 Rs. crore Rs. crore Rs. crore • EBITDA performance was driven by realisation gains as • Robust demand trajectory for • Owing to better operating well as higher operating key products resulted
Slide 15: Revenue break-up – Q4 & FY21
Revenue break-up – Q4 & FY21 14 Q4 FY21 Q4 FY20 FY21 FY20 7% XX% Rs. 72 crore 36%Rs. 67 crore Rs. 274 crore Rs. 249 crore 10% Organic Chemicals 31% Rs. 21 crore Rs. 16 crore Rs. 63 crore* Rs. 57 crore 11% Inorganic Chemicals * Revenues in the Inorganic Chemicals segment have been impacted during the
Slide 16: Update on brownfield expansion (phase I)
Update on brownfield expansion (phase I) 15 All reactors installed and commenced start up of initial commercial batches Product quality Will start contributing assurance and to revenues from Q2 customer validation of FY22; Rs. 450 crore PRODUCTION procedures are revenue guidance for FY22 remains OF
Slide 17: Seasonal Variance Factors
Seasonal Variance Factors 16 • Neogen’s business has some seasonal drivers, due to which the company tends to deliver stronger financial performance in the second half of the financial year (October to March). Seasonal variance is driven by strong demand from Europe as orders tend to scale up in Oct
Slide 18: Financial Table – Profit & Loss Statement (Standalone)
Financial Table – Profit & Loss Statement (Standalone) 17 (Rs. In crore) Particulars Q4 FY21 Q4 FY20 Growth (%) FY21 FY20 Growth (%) Revenue 92.7 82.3 12.6% 336.4 306.1 9.9% Expenditure 74.2 66.5 11.6% 272.06 248.1 9.7% EBITDA 18.5 15.8 17.1% 64.4 58.1 10.9% Margins 20.0% 19.2% 19.1% 19.0% Depreciat
Slide 19: Balance Sheet Snapshot (Standalone)
Balance Sheet Snapshot (Standalone) 18 Particulars (Rs. crore) As on March 31, 2021 As on March 31, 2020 Assets Non-Current Assets 251.5 123.6 • Total Debt (after including current maturities of long-term debt) increased Current Assets 240.6 231.7 from Rs. 137 crore in FY20 to Rs. 216 crore Total As
Slide 20: Management Commentary
Management Commentary 19 Commenting on the Q4 & FY21 performance, Mr. Haridas Kanani, Chairman & Managing Director, at Neogen Chemicals said: “It gives me immense pleasure to report that we have maintained our growth momentum in line with the outlook previously highlighted, in a year that’s been one
Slide 21: Historical Financial Trends
Historical Financial Trends 20 Net Revenue from Operations** EBITDA (INR crore) Margin (%) (INR crore) 18.1% 17.8% 18.2% 19.0% 19.1% 336 306 14.0% 239 163 101 111 14 20 29 43 58 64 FY16 FY17 FY18 FY19 FY20 FY21 FY16 FY17 FY18 FY19 FY20 FY21 ** Revenue is Net of Excise PAT (INR crore) Margin (%) Netw
Slide 22: Way Forward
Way Forward 21 Increasing Custom Synthesis & Contract Manufacturing portfolio Augmenting growth in domestic and global markets Expanding production capacities Focus on advanced speciality intermediates Focus on operational efficiency and functional excellence
Slide 23: Contact Us
Contact Us 22 About Neogen Chemicals Limited For further information, please contact: Incorporated in 1989, Neogen Chemicals Ltd. (NSE Code: NEOGEN; BSE Code: 542665) is one of India’s leading manufacturers of Bromine-based Ketan Vyas and Lithium-based specialty chemicals. Its specialty chemicals pr
Slide 24: Thank You
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