Neogen Chemicals Ltd. · NSE:NEOGEN
Neogen Chemicals — Q3 FY2025 Earnings Presentation
34 slides from Neogen Chemicals's earnings presentation, Feb 1, 2025
Slide 1: Exchange filing cover letter for earnings presentation
February 1, 2025 BSE Limited National Stock Exchange of India Department of Corporate Services Limited Floor 25, Phiroze Jeejeebhoy Listing Department, 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: Q3 & 9M FY25 Earnings Presentation
Creating Opportunities Building a Sustainable Future Q3 & 9M FY25 Earnings Presentation February 2025
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 Q3 & 9M 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 N Butyl Lithium Intermediates Synthesis & which find applications across multiple industries Organic and other Combining
Slide 10: Unique value-proposition
Unique value-proposition Experienced Board of Directors Specialised Business State-of-the-art Model with High Entry Manufacturing 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 Mr. Haridas Kanani, Dr. Harin Kanani, PhD degree in commerce degree in
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 93-member dedicated R&D 3 CMD and MD actively involved and spend significant time overseeing the team, including 11 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 6,455 m2 FY25 2,000 MT 2,500 MT Pakhajan, Dahej PCPIR (New site) 264,285 m2 FY26 30,000 MT 3,000 MT
Slide 17: Update on Battery Chemicals (Neogen Ionics)
Update on Battery Chemicals (Neogen Ionics) ● Full financial ● Greenfield facility – ● Discussing long ● Strategic hirings in ● Strong demand for ● Exemption of closure achieved construction term contracts with Battery Chemicals’ Indian supply of custom duties on for greenfield update Battery in pro
Slide 18: Update on Neogen Chemicals
Update on Neogen Chemicals ● Hon'ble National Company Law Tribunal has approved the amalgamation of Buli Chemicals India Private Limited with Neogen Chemicals o With this, BuLi Chem stands merged with Neogen Chemicals effective 31st January, 2025 o This is expected to streamline operations, reduce c
Slide 19: Q3 & 9M FY25 Financial Performance
Q3 & 9M FY25 Financial Performance 18
Slide 20: Key Performance Highlights – Q3 & 9MFY25
Key Performance Highlights – Q3 & 9MFY25 Standalone Consolidated Q3 FY25 Revenue break-up** Q3 FY25 9M FY25 Q3 FY25 9M FY25 65% 22% 16% 22% 17% Revenues Rs. 200 cr. Rs. 570 cr. Rs. 201 cr. Rs. 575 cr. 35% 72% 35% 71% 35% EBITDA Domestic *Exports Rs. 38 cr. Rs. 106 cr. Rs. 35 cr. Rs. 100 cr. *Includi
Slide 21: Financial Summary – Q3 FY25
Financial Summary – Q3 FY25 Standalone Consolidated REVENUE REVENUE ● Revenue performance boosted by volume growth in the base business and healthy 250.0 200.4 250.0 201.4 contribution from BuLi Chem, which is now a part of Neogen Chemicals standalone 200.0 164.5 200.0 164.4 150.0 22% 150.0 22% ● Th
Slide 22: Revenue break-up – Q3 & 9M FY25 (consolidated)
Revenue break-up – Q3 & 9M FY25 (consolidated) 36% 29% Lower Bromine prices Y-o-Y impacted the revenue trajectory. Chemicals 200 177 600 483 Had they remained stable, Organic 180 500 130 160 374 140 120 400 Organic Revenue for Q3 FY25 would have been higher by ~Rs. 100 300 80 200 60 40 20 100 34 cro
Slide 23: Financial Table – Profit & Loss Statement (Standalone)
Financial Table – Profit & Loss Statement (Standalone) Particulars (Rs. In crore) Q3 FY25 Q3 FY24 Growth (%) 9M FY25 9M FY24 Growth (%) Revenue 200.4 164.5 22% 569.9 491.1 16% Expenditure 162.8 142.6 14% 463.9 412.9 12% EBITDA 37.7 21.9 72% 106.0 78.2 35% EBITDA Margins 18.8% 13.3% 546 bps 18.6% 15.
Slide 24: Financial Table – Profit & Loss Statement (Consolidated)
Financial Table – Profit & Loss Statement (Consolidated) Particulars (Rs. In crore) Q3 FY25 Q3 FY24 Growth (%) 9M FY25 9M FY24 Growth (%) Revenue 201.4 164.4 22% 574.7 491.0 17% Expenditure 166.8 144.2 16% 474.8 416.8 14% EBITDA 34.6 20.3 71% 99.9 74.3 35% EBITDA Margins 17.2% 12.3% 486 bps 17.4% 15
Slide 25: 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 26: Management Commentary
Management Commentary Commenting on the Q3 FY25 performance, Mr. Haridas Kanani, Chairman & Managing Director, at Neogen Chemicals said: “Our Q3 FY25 results demonstrate a robust recovery, with revenue up 22% and EBITDA up 71%. This growth is attributed to strong ramp-up in BuLi Chem and sustained g
Slide 27: 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 28: Industry Overview Lithium-ion Batteries
Industry Overview Lithium-ion Batteries 27
Slide 29: Strong Opportunities in India's Lithium Battery sector
Strong Opportunities in India’s Lithium Battery sector ● Government’s PLI scheme: Strong demand for Lithium-ion battery (3.7v) locally manufactured batteries is expected to Approximate Cost Component Break up* catalyse the growth of India's EV ecosystem o Target Incentive Outlay of Rs. 18,100 crore
Slide 30: 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 31: 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 32: CSR Approach: Focusing On The Greater Good
CSR Approach: Focusing On The Greater Good #NeogenCARES - At Neogen, care isn’t just a commitment. It’s in our DNA. We believe the society is an integral part of our existence. We cannot grow unless the society around us also grows. Our objective, therefore, is to contribute our mite towards socio-e
Slide 33: 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 34: Thank You
' Thank You \ +