Neogen Chemicals Ltd. · NSE:NEOGEN
Neogen Chemicals — Q1 FY22 Earnings Presentation
23 slides from Neogen Chemicals's earnings presentation, Aug 8, 2021
Slide 1: Exchange filing cover letter for earnings presentation
August 8, 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 Comp
Slide 2: Neogen Chemicals Ltd. Q1 FY22 Earnings Presentation
Neogen Chemicals Ltd. Q1 FY22 Earnings Presentation August 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 18 19 20 21 30 Introduction Q1 FY22 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 2021 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 acre 100% 1,200 MT (Lithium) Vadodara (Since 2017) 40 acres 20% 85,400 GLR Litres (Bromine) 1,200 MT (Lithium) Dahej (Since 2020) 12 ac
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 – Q1 FY22
Key Performance Highlights – Q1 FY22 12 Q1 FY22 Rs. 84.6 crore 11% Revenues Q1 FY22 Revenue break-up Rs. 15.6 crore 15% EBITDA *Exports Domestic 46% 54% Rs. 10.2 crore 16% Profit Before Tax Rs. 7.4 crore 20% *Including deemed exports Profit After Tax Note: 1. Growth for Q1 FY22 is compared to Q1 FY2
Slide 14: Financial Summary – Q1 FY22
Financial Summary – Q1 FY22 13 REVENUE EBITDA PAT 84.6 15.6 7.4 76.6 6.1 13.6 Q1FY21 Q1FY22 Q1 FY21 Q1 FY22 Q1FY21 Q1FY22 Rs. crore Rs. crore Rs. crore • Reported steady topline • Higher utilisation at all plants performance in Q1 of FY22 helped maintain overall costs despite challenges on-ground an
Slide 15: Revenue break-up – Q1 FY22
Revenue break-up – Q1 FY22 14 Q1 FY22 Q1 FY21 3% Rs. 68 crore Rs. 66 crore Organic Chemicals XX% 52% Rs. 17 crore Rs. 11 crore Inorganic Chemicals
Slide 16: Update on brownfield expansion at Dahej site
Update on brownfield expansion at Dahej site 15 All reactors installed and commenced start up of initial commercial batches Will start contributing Product quality to revenues from Q2 of FY22; Rs. 450 crore TRIAL assurance and customer validation revenue guidance for PRODUCTION procedures are FY22 r
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 Q1 FY22 Q1 FY21 Growth (%) FY21 Revenue 84.6 76.6 11% 336.4 Expenditure 69.0 63.0 9% 272.06 EBITDA 15.6 13.6 15% 64.4 Margins 18.5% 17.7% 19.1% Depreciation 1.8 1.6 16% 6.9 EBIT 13.8 12.0 15% 57.5 Interest 3.6 3.3 9
Slide 19: Management Commentary
Management Commentary 18 Commenting on the Q1 FY22 performance, Mr. Haridas Kanani, Chairman & Managing Director, at Neogen Chemicals said: “We are glad to have commenced the year on an encouraging note, with 11% growth in Revenues and 20% gains in PAT. This came in despite several challenges faced
Slide 20: Historical Financial Trends
Historical Financial Trends 19 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 21: Way Forward
Way Forward 20 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 22: Contact Us
Contact Us 21 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 23: Thank You
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