Neogen Chemicals Ltd. · NSE:NEOGEN
Neogen Chemicals — Q2 FY22 Earnings Presentation
26 slides from Neogen Chemicals's earnings presentation, Oct 30, 2021
Slide 1: Neogen Chemicals filing cover letter to NSE
){ ~ .. NEOGEN ·~ CHEMICALS LTD. October 30, 2021 A National Stock Exchange of India Limited Departm f Corporate Services Listing Department, Floor 25, Phiroze · ebhoy Towers, Exchange Plaza, Dalal Street, Kala Ghoda,. Bandra Kurla Complex, Bandra (East), Mumbai 400 001 Mumbai -400 051 Scrip Code No
Slide 2: Q2 & H1 FY22 Earnings Presentation
Neogen Chemicals Ltd. Q2 & H1 FY22 Earnings Presentation October 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 Q2 & H1 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 Products developed Of workforce in by in-house R&D R&D team Strong portfolio of Organic and Inorganic products 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 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 Conversion to Started Increased Achieved Raised Rs. 132 Phase I & II operations public limited manufacturin 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: Developed strong R&D capabilities
Developed strong R&D capabilities 9 Post Believes that commissioning of Developed Established R&D is critical dedicated R&D 39-member two in-house for sustained CMD and MD units in 2001, the dedicated R&D R&D units, one growth and will are actively product portfolio team, including 6 each in Mahape
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 – Q2 & H1 FY22
Key Performance Highlights – Q2 & H1 FY22 12 Q2 FY22 H1 FY22 Rs. 113.2 crore 38% Rs. 197.8 crore 25% Revenues* Q2 FY22 Revenue break-up Rs. 20.5 crore 33% Rs. 36.1 crore 25% EBITDA Domestic *Exports 46% 54% Rs. 14.4 crore 40% Rs. 24.6 crore 29% Profit Before Tax Rs. 11.2 crore 51% Rs. 18.6 crore 37%
Slide 14: Financial Summary – Q2 FY22
Financial Summary – Q2 FY22 13 REVENUE* EBITDA PAT 113.2 20.5 11.2 82.0 15.4 7.4 Q2 FY21 Q2 FY22 Q2 FY21 Q2 FY22 Q2 FY21 Q2 FY22 Rs. crore Rs. crore Rs. crore • Better utilization of plants post • Reported accelerated revenue • PAT performance was bolstered Phase I expansion resulted in momentum ste
Slide 15: Revenue break-up – Q2 & H1 FY22
Revenue break-up – Q2 & H1 FY22 14 Q2 FY22 Q2 FY21 H1 FY22 H1 FY21 XX% Rs. 91 crore 36%Rs. 67.1 crore Rs. 159 crore Rs. 132.9 crore 20% 35% Organic Chemicals 63% Rs. 22 crore Rs. 13.5 crore Rs. 38.8 crore Rs. 25.7 crore 51% Inorganic Chemicals *Raw material prices (Lithium) which corrected in Q2 of
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
Key developments 16 • Total Organic Chemicals reactor capacity increased from 154,000 litres to 407,000 litres Key attributes through brownfield expansions across facilities o Phase I expansion completed in Sept 2021 • State-of-the-art facility adhering to o Phase II expansion completed in Oct 2021
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 Chemistry Lithium Cells (GWh) 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 • Electrolyte Lithium Salts • Specialized Cathode Materials • CSM opportunities o Portfolio of battery application products at quality/efficiency optimization stage,
Slide 20: Financial Table – Profit & Loss Statement (Standalone)
Financial Table – Profit & Loss Statement (Standalone) 19 (Rs. In crore) Particulars Q2 FY22 Q2 FY21 Growth (%) H1 FY22 H1 FY21 Growth (%) Revenue 113.2 82.0 38% 197.8 158.5 25% Expenditure 92.6 66.5 39% 161.7 129.5 25% EBITDA 20.5 15.4 33% 36.1 29.0 25% Margins 18.1% 18.8% -70 Bps 18.3% 18.3% -2 Bp
Slide 21: Balance Sheet Snapshot (Standalone)
Balance Sheet Snapshot(Standalone) 20 Particulars (Rs. crore) As on Sept 30, 2021 As on March 31, 2021 Assets Non-Current Assets 290.9 251.5 Current Assets 313.7 240.6 Total Assets 604.6 492.1 Liabilities Shareholders’ Funds 196.5 183.1 Non-Current Liabilities 164.1 135.0 Current Liabilities 244.1 1
Slide 22: Management Commentary
Management Commentary 21 Commenting on the Q2 & H1 FY22 performance, Mr. Haridas Kanani, Chairman & Managing Director, at Neogen Chemicals said: “I am pleased to share that we have navigated through numerous headwinds during the quarter under review to deliver a solid performance. While revenues inc
Slide 23: Historical Financial Trends
Historical Financial Trends 22 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 24: Way Forward
Way Forward 23 Increasing Custom Synthesis & Contract Manufacturing portfolio Foray into sunrise sector of Lithium Ion Batteries Expanding production capacities Focus on advanced speciality intermediates Focus on operational efficiency and functional excellence
Slide 25: Contact Us
Contact Us 24 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 26: Thank You
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