Neogen Chemicals Ltd. · NSE:NEOGEN
Neogen Chemicals — Q2 FY25 Earnings Presentation
33 slides from Neogen Chemicals's earnings presentation, Nov 13, 2024
Slide 1: Exchange filing cover letter for earnings presentation
November 13, 2024 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
Slide 2: Q2 & H1 FY25 Earnings Presentation
Seizing Opportunities Building a Sustainable Future Q2 & H1 FY25 Earnings Presentation November 2024
Slide 3: Safe Harbor
Safe Harbor 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 ma
Slide 4: Table of Contents
Table of Contents 1 Introduction to Neogen Chemicals 2 Update on Expansion Initiatives 3 Q2 FY25 Financial Performance 4 Industry Overview – Lithium-Ion Batteries 5 Way Forward 6 CSR Initiatives 7 Contact Us 3
Slide 5: Introduction to Neogen Chemicals
Introduction to Neogen Chemicals 4
Slide 6: Neogen Chemicals – At a Glance
Neogen Chemicals – At a Glance ISO 9001:2015, ISO 4 Manufacturing Sites + 246 2 R&D Facilities 12% 14001:2015 & ISO 760.3 24% 11% 45001:2018 Products Infrastructure Of workforce in Manufacturing units certified on Quality Net worth - FY24 5-year Revenue 5-year PAT developed by R&D team & SHE managem
Slide 7: Evolution of Neogen Chemicals
Evolution of Neogen Chemicals 1970’s to 1991 Pre-Neogen 1991 to 2016 Site I 2016 to 2019 Site I & II 2020 to 2024 Multiple Sites ● Mr. HT Kanani graduated as a ● ‘Neogen Chemicals’ ● Acquired Solaris ChemTech ● Doubled Inorganic Chemicals Chemical Engineer and started commenced business Industries’
Slide 8: Key Milestones
Key Milestones Leading manufacturer of Bromine and Lithium-based specialty chemicals since 1989 Increased the Signed licensing agreement with Achieved turnover capacity of MUIS, Japan Started of ₹100 crore Inorganic Acquired 100% stake in BuLi Chem operations with Increased Acquired Chemicals to Lit
Slide 9: Business Overview
Business Overview Organic Chemicals Inorganic Chemicals Bromine Organolithium / Advanced Custom The portfolio includes specialty, inorganic lithium-based chemical products Compounds Organometallic Intermediates Synthesis & which find applications across multiple industries Organic N Butyl Lithium Co
Slide 10: Unique value-proposition
Unique value-proposition Experienced Board of Directors State-of-the-art Specialised Business Manufacturing Model with High Entry Barriers Facilities Established Excellent Relationship with R&D Suppliers Capabilities Enduring Innovative Customer Product Relationships Portfolio 9
Slide 11: Experienced Leadership Team
Experienced Leadership Team Mr. Shyamsunder Mr. Gopikrishnan Mr. Anurag Surana Upadhyay Sarathy Non-Executive Whole time Director Chief Financial Officer Director ● Holds a bachelor’s ● Holds a master’s ● Associate member of the degree in commerce degree in science from Institute of Chartered Mr. Ha
Slide 12: Large Manufacturing Infrastructure – Neogen Chemicals
Large Manufacturing Infrastructure – Neogen Chemicals Strong Manufacturing Infrastructure Factory Land Area Land Utilisation Capacity Certifications of Manufacturing Facilities Inorganic Organic Chemicals Chemicals (Reactor capacity) (Tonnage) ISO 9001:2015 from Bureau Veritas Mahape (Since 1991) 4,
Slide 13: Driving Innovation Through R&D
Driving Innovation Through R&D Focus on R&D to drive sustained growth; to continue to deploy resources 90-member dedicated R&D 3 CMD and MD actively involved and spend significant time overseeing the team, including 10 Ph. D. 2 4 functioning of both R&D divisions Post commissioning of dedicated R&D
Slide 14: Key Export Geographies
Key Export Geographies Europe USA China Korea Japan Export sales of 27% in FY24 13
Slide 15: Update on Expansion Initiatives
Update on Expansion Initiatives 14
Slide 16: Update on various expansion initiatives
Update on various expansion initiatives Neogen Ionics Proposed Manufacturing Setup Manufacturing locations Land Area Year Planned Capacities Electrolyte Lithium Electrolyte Salts & Additives Dahej SEZ (transferred from Neogen FY24 - 400 MT 6,455 m2 Chemicals) FY25 2,000 MT To be increased to 2,500 M
Slide 17: Update on Battery Chemicals (Neogen Ionics)
Update on Battery Chemicals (Neogen Ionics) ● Achieved financial ● Discussing long ● Strategic hirings in ● Strong demand for closure for majority term contracts with Battery Chemicals’ non-Chinese supply of CAPEX in Neogen of Lithium Salts and Battery division nearly Electrolyte Ionics manufacturer
Slide 18: Q2 FY25 Financial Performance
Q2 FY25 Financial Performance 17
Slide 19: Key Performance Highlights – Q2 FY25
Key Performance Highlights – Q2 FY25 (Consolidated & Standalone) Q2 FY25 Q2 FY25 Q2 FY25 Revenue break-up** (Consolidated) (Standalone) 20% 4% 80% 74% 70% Revenues Rs. 193.4 crore Rs. 174.5 crore 60% 50% 40% 30% 26% 20% 33% 26% 10% 0% EBITDA Rs. 34.6 crore Rs. 32.9 crore Domestic *Exports *Including
Slide 20: Financial Summary – Q2 FY25 (consolidated)
Financial Summary – Q2 FY25 (consolidated) REVENUE ● Revenue growth was fueled by increased volumes in the core business, coupled with incremental contribution from BuLi Chem. This was achieved in a challenging operating environment characterized by 193.4 weak pricing 200.0 195.0 190.0 ● Softness in
Slide 21: Revenue break-up – Q2 FY25 (consolidated)
Revenue break-up – Q2 FY25 (consolidated) 34% Chemicals 180 164 Organic 160 140 123 120 100 80 60 Lower Bromine prices Y-o-Y and lower Lithium 40 20 metal price impacted the revenue trajectory. 0 Had they remained stable, Organic Revenue Q2 FY24 Q2 FY25 for Q2 FY25 would have been higher, to ~Rs. 18
Slide 22: Financial Table – Profit & Loss Statement (Consolidated)
Financial Table – Profit & Loss Statement (Consolidated) Particulars (Rs. In crore) Q2 FY25 Q2 FY24 Growth (%) H1 FY25 H1 FY24 Growth (%) Revenue 193.4 161.7 20% 373.3 326.6 14% Expenditure 158.9 135.8 17% 308.0 272.6 13% EBITDA 34.6 26.0 33% 65.4 54.1 21% EBITDA Margins 17.9% 16.1% 181 bps 17.5% 16
Slide 23: Financial Table – Profit & Loss Statement (Standalone)
Financial Table – Profit & Loss Statement (Standalone) Particulars (Rs. In crore) Q2 FY25 Q2 FY24 Growth (%) H1 FY25 H1 FY24 Growth (%) Revenue 174.5 168.2 4% 341.2 338.4 1% Expenditure 141.5 142.0 0% 279.9 283.1 -1% EBITDA 32.9 26.2 26% 61.3 55.7 10% EBITDA Margins 18.9% 15.6% 328 bps 18.0% 16.5% 1
Slide 24: Seasonal Variance Factors
Seasonal Variance Factors ● 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 Octobe
Slide 25: Management Commentary
Management Commentary Commenting on the Q2 FY25 performance, Mr. Haridas Kanani, Chairman & Managing Director, at Neogen Chemicals said: “We have delivered a strong performance during the period under review amid a challenging backdrop of events marked by soft demand, oversupply situation, geopoliti
Slide 26: Historical Financial Trends
Historical Financial Trends Net Revenue from Operations** (INR crore) EBITDA (INR crore) Margin (%) CAGR: 24% 18.9% 19.1% 112 110 800 686 691 120 18.2% 20.0% 87 19.0% 16.3% 700 100 16.0% 18.0% 600 487 80 65 17.0% 500 336 58 17.8% 16.0% 400 306 60 43 15.0% 300 239 40 14.0% 13.0% 200 12.0% 20 100 11.0
Slide 27: Industry Overview Lithium-ion Batteries
Industry Overview Lithium-ion Batteries 26
Slide 28: Strong Opportunities in India’s Lithium Battery sector
Strong Opportunities in India’s Lithium Battery sector Lithium-ion battery (3.7v) Approximate Cost Component Break up* ● Government’s PLI scheme for batteries is expected to catalyse the growth of India's EV ecosystem o Target Incentive Outlay of Rs. 18,100 crore o Manufacturing capacity of 50 Gwh o
Slide 29: Strong Opportunities in Global Lithium Battery sector
Strong Opportunities in Global Lithium Battery sector Demand Estimates for the Global Market (By 2030) Estimated Battery requirement Estimated Electrolyte demand (KT) Estimated Lithium Salt demand (GWh) (KT) 3,500 3,000 3,500 400 1,125 2,500 350 3,000 2,500 1,500 2,000 300 250 141 2,000 1,500 2,925
Slide 30: Way Forward
Way Forward Expand capabilities in adjacent high-end complex chemistries Augment the Leverage strong R&D capacities of Organic expertise to introduce and Inorganic innovative offerings Chemicals Enhance focus on Deep inroads in CSM & Advanced the Battery Intermediates Materials through portfolio seg
Slide 31: CSR Initiatives
CSR Initiatives Focus areas in CSR Healthcare, Conservation and Environment sanitation and management of sustainability nutrition natural resources Rural Education development 30
Slide 32: Contact Us
Contact Us About Neogen Chemicals Limited Incorporated in 1989, Neogen Chemicals Ltd. (NSE Code: NEOGEN; BSE Code: 542665) is India’s one of the leading manufacturers of Bromine-based and Lithium-based specialty chemicals. Its specialty chemicals product offerings comprises of Organic as well as Ino
Slide 33: Thank You
' Thank You \ +