Neogen Chemicals Ltd. · NSE:NEOGEN
Neogen Chemicals — Q3 FY22 Earnings Presentation
25 slides from Neogen Chemicals's earnings presentation, Jan 30, 2022
Slide 1: Exchange filing cover letter for earnings presentation
'}( •~aNEOGEN ~~~ CHEMICALS LTD. A January 30, 2022 Departme Corporate Services Floor 25, Phiroze Je · bhoy Towers, National Stock Exchange of India Limited Listing Department, Exchange Plaza, I I Dalal Street, Kala Ghoda, For Sandra Kurla Complex, Sandra (East), Mumbai 400 001 Mumbai - 400 051 ._sc
Slide 2: Neogen Chemicals Ltd. Q3 & 9M FY22 Earnings Presentation
Neogen Chemicals Ltd. Q3 & 9M FY22 Earnings Presentation January 2022
Slide 3: Safe Harbour
Safe Harbour 2 Certain statements in this document may be forward-looking. 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 materially
Slide 4: Table of Contents
Table of Contents 3 4 11 12 20 21 22 23 30 Introduction Q3 & 9M Historical Competitive Management Way to Neogen FY22 Financial Contact Us Advantages Commentary Forward Chemicals Financial Trends Performance
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 Promoters are pioneering technocrats with substantial domain Products developed Of workforce in expertise; cumulative experience of more than six decades by in-house R&D R&D t
Slide 6: Evolution of Neogen Chemicals
Evolution of Neogen Chemicals 5 1970’s to 1991 1991 to 2016 2016 to 2022 Pre-Neogen Pre-expansion Present o Mr. HT Kanani graduated as a Chemical Engineer and o ‘Neogen Chemicals’ commenced business operations o Acquired 12 acres of land in Dahej for Greenfield started his association with Bromine c
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 2021 Started Converted to Started Increased Achieved Raised Rs. 132 Phase I & II operations public limited manufacturing reactor turnover
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 Organic Chemicals Inorganic Chemicals (Reactor capacity) (Tonnage) Mahape (Since 1991) 1 acre 100% 69,000 Liters 1,200 MT Vadodara (Since 2017) 40 acres 20% 1,11,000 Liters - Dahej (Sin
Slide 10: Focus on developing strong R&D capabilities
Focus on developing strong R&D capabilities 9 Post Believes that commissioning of Developed R&D is critical Established dedicated R&D 43-member for sustained CMD and MD two in-house units in 2001, the dedicated R&D growth and will are actively R&D units, one product portfolio team, including 6 conti
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 – Q3 & 9M FY22
Key Performance Highlights – Q3 & 9M FY22 12 Q3 FY22 9M FY22 Rs. 132.6 crore 56% Rs. 330.5 crore 36% Revenues* Q3 FY22 Revenue break-up Rs. 23.8 crore 41% Rs. 60 crore 31% EBITDA *Exports 45% Rs. 13.8 crore 15% Rs. 38.4 crore 24% Domestic 55% Profit Before Tax Rs. 10.5 crore 23% Rs. 29.1 crore 32% *
Slide 14: Financial Summary – Q3 FY22
Financial Summary – Q3 FY22 13 REVENUE EBITDA PAT 132.6 23.8 10.5 8.5 85.2 16.9 Q3 FY21 Q3 FY22 Q3 FY21 Q3 FY22 Q3 FY21 Q3 FY22 Rs. crore Rs. crore Rs. crore • EBITDA performance includes • Registered robust revenue gains transient cost impact related to • PAT growth appears contained driven by high
Slide 15: Revenue break-up – Q3 & 9M FY22
Revenue break-up – Q3 & 9M FY22 14 Q3 FY22 Q3 FY21 9M FY22 9M FY21 XX% Rs. 105 crore 36%Rs. 69 crore Rs. 264 crore Rs. 202 crore 31% 53% Organic Chemicals 70% Rs. 27 crore Rs. 16 crore Rs. 66 crore Rs. 42 crore 57% Inorganic Chemicals
Slide 16: Seasonal Variance Factors
Seasonal Variance Factors 15 • 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 17: Key developments & updates
Key developments & updates 16 • Raised Rs. 225 crore through the issuance of up to 16,04,710 equity shares on preferential allotment basis at an issue price of Rs. 1,402.12 per equity share o Some of the high-quality, marquee institutional investors that participated include SBI MF, Axis MF, Plutus
Slide 18: Strong Opportunities in Lithium Battery sector
Strong Opportunities in Lithium Battery sector 17 Government focus on self-reliance in battery Demand Estimates for the Indian Market manufacturing has opened up new prospects o India has invited global bids for giga-scale Advanced Lithium Cells (GWh) Chemistry Cell (ACC) production units ACC WINDOW
Slide 19: Neogen's planned initiatives in the Lithium Battery sector
Neogen’s planned initiatives in the Lithium Battery sector 18 o Development initiatives under process for: • Electrolyte Formulations • Lithium Salts for Electrolyte Formulations • Specialized Cathode Materials o Portfolio of battery application products at quality/efficiency optimization stage, pri
Slide 20: Financial Table – Profit & Loss Statement (Standalone)
Financial Table – Profit & Loss Statement (Standalone) 19 (Rs. In crore) Particulars Q3 FY22 Q3 FY21 Growth (%) 9M FY22 9M FY21 Growth (%) Revenue 132.6 85.2 56% 330.5 243.7 36% Expenditure 108.8 68.3 59% 270.5 197.9 37% EBITDA 23.8 16.9 41% 60.0 45.9 31% Margins 18.0% 19.8% 18.1% 18.8% Depreciation
Slide 21: Management Commentary
Management Commentary 20 Commenting on the Q3 & 9M FY22 performance, Mr. Haridas Kanani, Chairman & Managing Director, at Neogen Chemicals said: “I am delighted to share that we have demonstrated robust all-round performance during the quarter under review steered by incremental gains from recently
Slide 22: Historical Financial Trends
Historical Financial Trends 21 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 23: Way Forward
Way Forward 22 Increasing Custom Synthesis & Contract Manufacturing portfolio Foray into sunrise sector of Lithium-Ion Battery materials Expanding production capacities Focus on advanced speciality intermediates Focus on operational efficiency and functional excellence
Slide 24: Contact Us
Contact Us 23 About Neogen Chemicals Limited For further information, please contact: 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 Ketan Vyas based specialty chemicals. Its specialty chemical
Slide 25: Thank You
3 ) > x co (ar) = -