Neogen Chemicals Ltd. · NSE:NEOGEN
Neogen Chemicals — Q1 FY20 Earnings Presentation
16 slides from Neogen Chemicals's earnings presentation, Aug 10, 2019
Slide 1: Neogen Chemicals Ltd. Q1 FY20 Earnings Presentation
Neogen Chemicals Ltd. Q1 FY20 Earnings Presentation August 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 Q1 FY20 Historical Competitive Management Way to Neogen Financial Financial Contact Us Advantages Commentary Forward Chemicals Performance Trends
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 – Q1 FY20
Key Performance Highlights – Q1 FY20 7 Rs. 64.4 cr 66% Revenues Revenue break-up Rs. 11.5 cr 70% *Exports, Domestic, EBITDA 49% 51% Rs. 7.5 cr 104% Profit Before Tax Rs. 5.5 cr 92% *Including deemed exports Profit After Tax Note: Growth for Q1 FY20 is compared to Q1 FY19
Slide 8: Financial Summary – Q1 FY20
Financial Summary – Q1 FY20 8 REVENUE EBITDA PAT 5.5 64.4 11.5 38.7 6.8 2.9 Q1 FY19 Q1 FY20 Q1 FY19 Q1 FY20 Q1 FY19 Q1 FY20 Rs. crore Rs. crore Rs. crore Strong growth on lower base EBITDA expanded in-line with Profit After Tax improved due as major overhaul in the growth in revenues, driven by: to
Slide 9: Revenue break-up – Q1 FY20
Revenue break-up – Q1 FY20 9 Q1 FY20 Q1 FY19 83% Solid growth based on higher capacity Rs. 48.4 cr. Rs. 26.5 cr. utilisation and increased efficiency of Organic Chemicals operations post major plant overhaul which took place last year Inorganic Strong performance was led by positive demand scenario
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) Q1 FY20 Q1 FY19 Growth (%) FY19 Revenue 64.4 38.7 66.4% 239.1 Expenditure 52.9 32.0 65.6% 195.6 EBITDA 11.5 6.8 70.2% 43.4 Margins 17.8% 17.4% 18.2% Depreciation 0.9 0.6 58.0% 2.8 EBIT 10.6 6.2 71.3% 40.6 Interest 3.2
Slide 12: Management Commentary
Management Commentary 12 Commenting on the Q1 FY20 performance, Mr. Haridas Kanani, Chairman & Managing Director, at Neogen Chemicals said: “I am glad to report a strong earnings performance in the first full quarter after our initial public offering. Performance was led by positive demand environme
Slide 13: Historical Financial Trends
Historical Financial Trends 13 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 14: Way Forward
Way Forward 14 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 15: Contact Us
Contact Us 15 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 16: Thank You
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