Neogen Chemicals Ltd. · NSE:NEOGEN
Neogen Chemicals — Q2 FY20 Earnings Presentation
17 slides from Neogen Chemicals's earnings presentation, Nov 12, 2019
Slide 1: Neogen Chemicals Ltd. Q2 & H1 FY20 Earnings Presentation
Neogen Chemicals Ltd. Q2 & H1 FY20 Earnings Presentation November 2019
Slide 2: 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 3: Table of Contents
Table of Contents 3 4 6 7 12 13 14 15 30 Introduction Q2 & H1 Historical Competitive Management Way to Neogen FY20 Financial Contact Us Advantages Commentary Forward Chemicals Financial Trends Performance
Slide 4: 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 5: Business Overview and Clientele
Business Overview 5 Organic Chemicals Inorganic Chemicals The portfolio includes specialty, inorganic Custom Synthesis & lithium-based chemical products which Bromine Compounds Advanced Intermediates Manufacturing find applications across multiple industries Organic compounds containing Combining br
Slide 6: Competitive Advantages
Competitive Advantages 6 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 barriers
Slide 7: Key Performance Highlights – Q2 FY20
Key Performance Highlights – Q2 FY20 7 Rs. 77.09 cr 35% Revenues Revenue break-up Rs. 14.75 cr 48% *Exports, 25% EBITDA Domestic, 75% Rs. 10.93 cr 65% Profit Before Tax *Including deemed exports Rs. 7.72 cr 53% • Q2 saw slowness in demand from some overseas Profit After Tax customers, seen to be qua
Slide 8: Financial Summary – Q2 FY20
Financial Summary – Q2 FY20 8 REVENUE EBITDA PAT 77.1 14.8 7.7 57.3 10.0 5.1 Q2 FY19 Q2 FY20 Q2 FY19 Q2 FY20 Q2 FY19 Q2 FY20 Rs. crore Rs. crore Rs. crore Healthy growth on lower base EBITDA registered solid growth PAT margin expansion based as major overhaul in the first and margin expansion driven
Slide 9: Revenue break-up
Revenue break-up 9 Q2 FY20 Q2 FY19 H1 FY20 H1 FY19 Organic Chemicals Performance driven by healthy utilisation levels following plant 53% Rs. 63.6 cr. Rs. 41.4 cr. 65% Rs. 111.9 cr. Rs. 68.0 cr. maintenance activity in the same period last year Inorganic Chemicals (15%) Rs. 13.5 cr. Rs. 15.9 cr. 5%
Slide 10: Seasonal Variance Factors
Seasonal Variance Factors 10 • 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 11: Financial Table – Profit & Loss Statement (Standalone)
Financial Table – Profit & Loss Statement (Standalone) 11 Particulars (Rs. crore) Q2 FY20 Q2 FY19 Growth (%) H1 FY20 H1 FY19 Growth (%) Revenue 77.1 57.3 34.5% 141.5 96.0 47.4% Expenditure 62.3 47.3 31.8% 115.3 79.3 45.4% EBITDA 14.8 10.0 47.5% 26.3 16.8 56.6% Margins 19.1% 17.5% 18.6% 17.5% Depreci
Slide 12: Balance Sheet Snapshot (Standalone)
Balance Sheet Snapshot (Standalone) 12 Particulars (Rs. crore) As on Sept 30, 2019 As on Mar 31, 2019 As on Sept 30, 2018 Assets Non-current assets 102.4 86.6 86.8 Current assets 194.5 160.1 135.1 Total Assets 296.9 246.7 221.9 Liabilities Shareholders' Funds 141.6 70.5 57.2 Non-current liabilities
Slide 13: Management Commentary
Management Commentary 13 Commenting on the Q2 FY20 performance, Mr. Haridas Kanani, Chairman & Managing Director, at Neogen Chemicals said: “I am pleased to share that we have once again demonstrated robust performance in the second quarter of this financial year with revenue growth of 35% complemen
Slide 14: Historical Financial Trends
Historical Financial Trends 14 Net Revenue from Operations** EBITDA (INR crore) Margin (%) (INR crore) 18.1% 17.8% 18.2% 15.4% 15.0% 14.0% 239 163 101 111 74 85 12 13 14 20 29 43 FY14 FY15 FY16 FY17 FY18 FY19 FY14 FY15 FY16 FY17 FY18 FY19 ** Revenue is Net of Excise PAT (INR crore) Margin (%) Networ
Slide 15: Way Forward
Way Forward 15 Increasing Custom Synthesis & 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 16: Contact Us
Contact Us 16 About Neogen Chemicals Limited For further information, please contact: Incorporated in 1991, Neogen Chemicals Ltd. (NSE Code: NEOGEN; BSE Code: 542665) is one of India’s leading manufacturers of Bromine-based and Lithium-based specialty chemicals. It’s specialty chemicals product offe
Slide 17: Thank You
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