Neogen Chemicals Ltd. · NSE:NEOGEN
Neogen Chemicals — Q4 & FY22 Earnings Presentation
26 slides from Neogen Chemicals's earnings presentation, May 15, 2022
Slide 1: Exchange cover letter for earnings presentation
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Slide 2: Q4 & FY22 Earnings Presentation
Neogen Chemicals Ltd. Q4 & FY22 Earnings Presentation May 2022 )( ~. NEOGEN ~ CHEMICALS LTD. J<..
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 21 22 23 24 30 Introduction Q4 & 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 233 10°/o Strong portfolio of Organic and Inorganic products Products developed Of workforce in by in-house R&D R&D team Customers across multiple industries including Pharma,
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 operations Conversion to Started manufacturing Increased reactor Achieved turnover of Raised Rs. 132 Phase I & II with Lithi
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 46-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 8 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 – Q4 & FY22
Key Performance Highlights – Q4 & FY22 12 Q4 FY22 FY22 Rs. 156.8 crore 0 69% Rs. 487.3 crore 0 45% The Board of Directors approved a final dividend of Rs. 2.75 per Revenues share (27.5%) for FY22 Rs. 26.6 crore 0 44% Rs. 86.6 crore 0 35% EBITDA Q4 FY22 Revenue break-up Rs. 18.8 crore 0 42% Rs. 57.2
Slide 14: Financial Summary – Q4 FY22
Financial Summary – Q4 FY22 13 REVENUE EBITDA PAT 156.8 26.6 15.7 92.7 I•• 18.5 9.4 • Q4 FY21 Q4 FY22 Q4 FY21 Q4 FY22 Q4 FY21 Q4 FY22 Rs. crore Rs. crore Rs. crore • Demonstrated solid revenue • Higher utilization levels at newly • PAT performance was in-line with momentum during Q4 FY22 led by comm
Slide 15: Revenue break-up – Q4 & FY22
Revenue break-up – Q4 & FY22 14 Q4 FY22 Q4 FY21 FY22 FY21 XX% Rs. 99 crore 36%Rs. 72 crore Rs. 363 crore Rs. 274 crore 33% 38% Organic Chemicals 176% Rs. 58 crore Rs. 21 crore Rs. 124 crore Rs. 63 crore 97% 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
Key developments 16 • The Board of Directors at its meeting held on 14th May, 2022 considered and approved an estimated capital expenditure of upto Rs. 150 crore, to be deployed in FY23 at Dahej SEZ Plant for: • Expanding manufacturing capacity of specialty organic chemicals by 60,000 litres – to su
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 After inviting global bids for giga-scale Advanced Chemistry Cell (ACC) Lithium Cells (GWh) production units, the GoI sele
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: Lithium ion battery (3.7V) • Electrolyte Formulations Approximate Cost Component Break Up* • Electrolyte Lithium Salts • Specialized Cathode Materials • CSM and advanced intermediates opportuni
Slide 20: Financial Table – Profit & Loss Statement (Standalone)
Financial Table – Profit & Loss Statement (Standalone) 19 (Rs. In crore) Particulars Q4 FY22 Q4 FY21 Growth (%) FY22 FY21 Growth (%) Revenue 156.8 92.7 69% 487.3 336.4 45% Expenditure 130.2 74.2 75% 400.7 272.1 47% EBITDA 26.6 18.5 44% 86.6 64.4 35% Margins 17.0% 20.0% 17.8% 19.1% Depreciation 3.8 1
Slide 21: Balance Sheet Snapshot (Standalone)
Balance Sheet Snapshot (Standalone) 20 Particulars (Rs. crore) As on March 31, 2022 As on March 31, 2021 Assets Non-Current Assets 306.3 251.5 Current Assets 493.1 240.6 • Total Debt (after including Total Assets 799.3 492.1 current maturities of long-term debt) stood at Rs. 225 crore in FY22 Liabil
Slide 22: Management Commentary
Management Commentary 21 Commenting on the Q4 & FY22 performance, Mr. Haridas Kanani, Chairman & Managing Director, at Neogen Chemicals said: “We are glad to have concluded the year on a high note despite unprecedented challenges posed by inflation in raw material prices and utility costs, as well a
Slide 23: Historical Financial Trends
Historical Financial Trends 22 Net Revenue from Operations** EBITDA (INR crore) Margin (%) (INR crore) 19.1% 19.0% 487 336 18.1% 18.2% 306 17.8% 239 17.8% 163 111 20 29 43 58 64 87 FY17 FY18 FY19 FY20 FY21 FY22 FY17 FY18 FY19 FY20 FY21 FY22 ** 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 India’s one of the leading manufacturers of Bromine based Ketan Vyas and Lithium based specialty chemicals. Its specialty chemical
Slide 26: Thank You
':;( .~ .. NEOGEN ~ CHEMICALS LTD. A Thank You