Neogen Chemicals Ltd. · NSE:NEOGEN
Neogen Chemicals — H1 FY21 Earnings Presentation
18 slides from Neogen Chemicals's earnings presentation, Nov 9, 2020
Slide 1: Neogen Chemicals Ltd. Q2 & H1 FY21 Earnings Presentation
Neogen Chemicals Ltd. Q2 & H1 FY21 Earnings Presentation November 2020
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 14 15 16 17 30 Introduction Q2 & H1 Historical Competitive Management Way to Neogen FY21 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 & H1 FY21
Key Performance Highlights – Q2 & H1 FY21 7 Q2 FY21 H1 FY21 Rs. 82 crore 6.3% Rs. 159 crore 12.0% Q2 FY21 Revenue Revenues break-up Rs. 15 crore 4.7% Rs. 29 crore 10.4% 44% 56% EBITDA Rs. 10 crore 5.8% Rs. 19 crore 3.7% Profit Before Tax Domestic *Exports Rs. 7 crore 4.1% Rs. 14 crore 2.6% *Includin
Slide 8: Financial Summary – H1 FY21
Financial Summary – H1 FY21 8 REVENUE EBITDA PAT 13.2 2.6% 13.6 158.5 141.5 29.0 26.3 H1 FY20 H1 FY21 H1 FY20 H1 FY21 H1 FY20 H1 FY21 Rs. crore Rs. crore Rs. crore Revenue growth was driven by • EBITDA expansion supported Moderate growth in PAT was due better product mix led by increased by focused
Slide 9: Revenue break-up – Q2 & H1 FY21
Revenue break-up – Q2 & H1 FY21 9 Q2 FY21 Q2 FY20 H1 FY21 H1 FY20 6% Rs. 67.1 crore36%Rs. 63.6 crore Rs. 132.9 crore Rs. 111.9 crore 19% Organic Chemicals 10% Rs. 14.9 crore Rs. 13.5 crore Rs. 25.7 crore Rs. 29.6 crore 13% Inorganic Chemicals
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 FY21 Q2 FY20 Growth (%) H1 FY21 H1 FY20 Growth (%) Revenue 82.0 77.1 6.3% 158.5 141.5 12.0% Expenditure 66.5 62.3 6.7% 129.5 115.3 12.4% EBITDA 15.4 14.8 4.7% 29.0 26.3 10.4% Margins 18.8% 19.1% 18.3% 18.6% Deprecia
Slide 12: Balance Sheet & Cashflow Snapshot (Standalone)
Balance Sheet & Cashflow Snapshot (Standalone) 12 Particulars (Rs. crore) As on Sept 30, 2020 As on March 31, 2020 Assets Non-Current Assets 153.1 123.6 • Significant reduction in Net Working Capital 134.9 169.2 working capital achieved Other Current Assets 47.4 26.6 during H1 FY21 Total 335.4 319.4
Slide 13: Incremental capacity additions
Incremental capacity additions 13 • CAPEX of Rs. 55 crore planned for FY22 in Organic Chemicals, based on strong visibility from global customers • This will create incremental revenue capacity of Rs. 150-175 crore at peak utilisation • This will further fortify Neogen’s position as a leading manufa
Slide 14: Management Commentary
Management Commentary 14 Commenting on the Q2 & H1 FY21 performance, Mr. Haridas Kanani, Chairman & Managing Director, at Neogen Chemicals said: “I am glad to report another quarter of strong topline performance. We have once again demonstrated organizational resilience with the dedicated support of
Slide 15: Historical Financial Trends
Historical Financial Trends 15 Net Revenue from Operations** EBITDA (INR crore) Margin (%) (INR crore) 18.1% 17.8% 18.2% 19.0% 15.0% 14.0% 306 239 163 85 101 111 13 14 20 29 43 58 FY15 FY16 FY17 FY18 FY19 FY20 FY15 FY16 FY17 FY18 FY19 FY20 ** Revenue is Net of Excise PAT (INR crore) Margin (%) Netwo
Slide 16: Way Forward
Way Forward 16 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 17: Contact Us
Contact Us 17 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 and Ketan Vyas Lithium-based specialty chemicals. Its specialty chemicals pr
Slide 18: Thank You
3 fc) x Sq (ar) aS al