Neogen Chemicals Ltd. · NSE:NEOGEN
Neogen Chemicals — Q4 & FY24 Earnings Presentation
36 slides from Neogen Chemicals's earnings presentation, May 2, 2024
Slide 1: Cover letter to stock exchanges
May 2, 2024 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 Compa
Slide 2: Exploring New Horizons – Q4 & FY24 Earnings Presentation
Expanding Capabilities Exploring New Horizons Q4 & FY24 Earnings Presentation May 2024
Slide 3: Safe Harbour
Safe Harbour 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 Update on Expansion Introduction to Initiatives & Key Q4 & FY24 Financial Industry Overview – Neogen Chemicals Developments Performance Lithium-Ion Batteries 4 14 18 29 Way Forward CSR Initiatives Contact Us 32 33 34 3
Slide 5: Introduction to Neogen Chemicals
Introduction to Neogen Chemicals 4
Slide 6: Neogen Chemicals – At a Glance
Neogen Chemicals – At a Glance ISO 9001:2015, ISO 4 Manufacturing Sites + 2 246 R&D Facilities 10% 14001:2015 & ISO 760.3 24% 11% 45001:2018 Products Infrastructure Of workforce in Manufacturing units certified on Net worth - 5-year Revenue 5-year PAT developed by R&D team Quality & SHE management s
Slide 7: Evolution of Neogen Chemicals
Evolution of Neogen Chemicals 1970’s to 1991 Pre- 2020 to 2024 – Multiple 1991 to 2016 – Site I 2016 to 2019 – Site I & II Neogen Sites ▪ Mr. HT Kanani graduated as a ▪ ‘Neogen Chemicals’ commenced ▪ Acquired Solaris ChemTech ▪ Doubled Inorganic Chemicals Chemical Engineer and started his business o
Slide 8: Key Milestones
Key Milestones Leading manufacturer of Bromine and Lithium-based specialty chemicals since 1989 Increased Organic Chemicals reactor Raised Rs. 132 capacity to 407,000 Started crore through litres Incorporation as a manufacturing initial public Raised Rs. 225 crore private limited Increased in specia
Slide 9: Business Overview and End User Industries
Business Overview Bromine Compounds Select Clientele Organic compounds containing chlorine, fluorine, iodine-based combinations thereof and others including grignard reagents Pharmaceuticals Organolithium / Organometallic Agrochemicals End User Industries N Butyl Lithium and other organolithium prod
Slide 10: Compelling value-proposition
Compelling value-proposition Innovative Product Portfolio Excellent R&D Enduring Customer Capabilities Relationships State-of-the-art Established Manufacturing Facilities Relationship with Suppliers Experienced Specialised Business Board of Directors Model with High Entry Barriers 9
Slide 11: Experienced Leadership Team
Experienced Leadership Team Mr. Anurag Surana, Non-Executive Director ▪ Holds a bachelor’s degree in commerce with Honours from the University of Delhi Mr. Haridas Kanani, ▪ Experience of more than 20 years in Contract Manufacturing business Dr. Harin Kanani, B.TECH (CHEM) M.I.I.Ch.E. ▪ A well-known
Slide 12: Large Manufacturing Infrastructure – Neogen Chemicals
Large Manufacturing Infrastructure – Neogen Chemicals Strong Manufacturing Infrastructure Land Factory Land Area Capacity Certifications of Manufacturing Facilities Utilisation Inorganic Organic Chemicals Chemicals (Reactor capacity) (Tonnage) Mahape (Since 1991) 4,045 m2 100% 69 m3 9 m3 ISO 9001:20
Slide 13: Developed strong R&D capabilities
Developed strong R&D capabilities 68-member CMD and MD are dedicated R&D team, actively involved including 7 Ph. D. and spend significant time overseeing the Established two R&D functioning of both units R&D divisions Post commissioning of dedicated R&D units in 2001, the product portfolio has grown
Slide 14: Key Export Geographies
Key Export Geographies Europe Japan China USA Korea Exporting to United States, Europe and Japan Export sales of 27% in FY24 13
Slide 15: Update on Expansion Initiatives & Key Developments
Update on Expansion Initiatives & Key Developments 14
Slide 16: Update on Neogen Ionics
Update on Neogen Ionics Proposed Manufacturing Setup Manufacturing locations Land Area Year Capacities Lithium Electrolyte Salts Electrolyte & Additives Dahej SEZ (transferred from FY24 - 400 MT 6,455 m2 Neogen Chemicals) FY25 2,000 MT To be increased to 2,500 MT Pakhajan, Dahej PCPIR (New site) 264
Slide 17: Update on various expansion initiatives
Update on various expansion initiatives Details of expansion projects Current project updates: announced: Expansion plans in FY25 and FY26 29 m3 will be commissioned by Existing Business Expansion of specialty organic FY25; 31 m3 already chemicals capacity by 60 m3 ▪ Lithium Electrolyte Salts & Addi
Slide 18: Strategic Developments in FY24
Strategic Developments in FY24 Acquisition of 100% stake in BuLi Chem • BuLi Chem owns the technology to manufacture N Butyl Lithium and other organolithium products using Lithium metal, which are key reagents for Lithiation reaction • This provides Neogen Chemicals an additional Technology Platform
Slide 19: Q4 & FY24 Financial Performance
Q4 & FY24 Financial Performance 18
Slide 20: Key Performance Highlights – Q4 & FY24 (Consolidated)
Key Performance Highlights – Q4 & FY24 (Consolidated) Q4 FY24 FY24 The Board of Directors has recommended a final dividend of Rs. 2 per share, Revenues Rs. 200 crore Rs. 691 crore i.e., 20% of the FV, for FY24, subject to shareholders approval 2.1% 0.7% EBITDA Rs. 36 crore Rs. 110 crore FY24 Rev
Slide 21: Key Performance Highlights – Q4 & FY24 (Standalone)
Key Performance Highlights – Q4 & FY24 (Standalone) Q4 FY24 FY24 Revenues Rs. 191 crore Rs. 696 crore 6.5% 1.5% EBITDA Rs. 34 crore Rs. 116 crore 4.7% 3.5% Profit Before Tax Rs. 23 crore Rs. 64 crore 12.1% 10.5% Profit After Tax Rs. 18 crore Rs. 44 crore 24% 12.0% Note: 1. Growth for
Slide 22: Financial Summary – FY24
Financial Summary – FY24 Rs. crore REVENUE • Revenue performance was maintained inspite of significant decrease in the prices of raw materials during the year, particularly bromine and lithium 1% FY24 • The Company managed to sustain/ increase its base volumes by adding new customers and 690.7 cost
Slide 23: Revenue break-up – Q4 & FY24
Revenue break-up – Q4 & FY24 Q4 FY23 Rs. 138 crore Q4 FY24 Rs. 169 crore 22% Organic Chemicals FY23 Rs. 463 crore FY24 Rs. 543 crore 17% Q4 FY23 Rs. 66 crore Q4 FY24 Rs. 31 crore 53% Inorganic Chemicals FY23 Rs. 223 crore FY24 Rs. 148 crore 34% Consolidated data 22
Slide 24: Financial Table – Profit & Loss Statement (Consolidated)
Financial Table – Profit & Loss Statement (Consolidated) Particulars (Rs. In crore) Q4 FY24 Q4 FY23 Growth (%) FY24 FY23 Growth (%) Revenue 199.7 203.9 -2% 690.7 686.2 1% Expenditure 163.9 171.3 -4% 580.6 574.4 1% EBITDA 35.8 32.6 10% 110.2 111.6 -1% EBITDA Margins 17.9% 16.0% +194 bps 15.9% 16.3% -
Slide 25: Financial Table – Profit & Loss Statement (Standalone)
Financial Table – Profit & Loss Statement (Standalone) Particulars (Rs. In crore) Q4 FY24 Q4 FY23 Growth (%) FY24 FY23 Growth (%) Revenue 190.6 203.9 -7% 696.4 686.2 1% Expenditure 156.5 171.3 -9% 580.8 574.6 1% EBITDA 34.1 32.6 5% 115.6 111.6 4% EBITDA Margins 17.9% 16.0% +192 bps 16.6% 16.3% +33 b
Slide 26: Balance Sheet Snapshot (Consolidated)
Balance Sheet Snapshot (Consolidated) Particulars (Rs. In crore) As on March 31, 2024 As on March 31, 2023 Assets Non-Current Assets 677.74 397.97 Current Assets 783.66 655.83 • Total Debt (after including current Total Assets 1,461.40 1,053.80 maturities of long-term debt) stood at Rs. 393.5 crore
Slide 27: Seasonal Variance Factors
Seasonal Variance Factors ▪ 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 Octobe
Slide 28: Management Commentary
Management Commentary Commenting on the Q4 & FY24 performance, Mr. Haridas Kanani, Chairman & Managing Director, at Neogen Chemicals said: “Financial Year 2024 marked a significant milestone for Neogen Chemicals as we embarked on an accelerated growth trajectory, establishing a robust foundation to
Slide 29: Historical Financial Trends
Historical Financial Trends Net Revenue from Operations** EBITDA (INR crore) Margin (%) (INR crore) 19.0% 19.2% 17.8% 686 691 18.2% 16.3% 16.0% 487 306 336 239 44 58 65 87 112 110 FY19 FY20 FY21 FY22 FY23 FY24 FY19 FY20 FY21 FY22 FY23 FY24 ** Revenue is Net of Excise PAT (INR crore) Margin (%) Netwo
Slide 30: Industry Overview: Lithium-Ion Batteries
Industry Overview: Lithium-Ion Batteries 29
Slide 31: Strong Opportunities in India’s Lithium Battery sector
Strong Opportunities in India’s Lithium Battery sector Lithium-ion battery (3.7v) • Government’s PLI scheme for batteries is expected to Approximate Cost Component Break up* catalyse the growth of India's EV ecosystem • Target Incentive Outlay of Rs. 18,100 crore • Manufacturing capacity of 50 Gwh o
Slide 32: Strong Opportunities in Global Lithium Battery sector
Strong Opportunities in Global Lithium Battery sector Demand Estimates for the Global Market By 2030 China Non-China Total Estimated Battery requirement (GWh) 1,500 1,500 3,000 Estimated Electrolyte demand (MT) 1,800,000 1,125,000 2,925,000 Estimated Electrolyte Salt demand (MT) 225,000 140,625 365,
Slide 33: Way Forward
Way Forward Enhance focus on CSM Deep inroads in & Advanced the Battery Intermediates through Materials portfolio expansion segment Augment the Expand capabilities in Leverage strong R&D capacities of Organic adjacent high-end expertise to introduce and Inorganic complex chemistries innovative offer
Slide 34: CSR Initiatives
CSR Initiatives Focus areas in CSR Rural development Education Healthcare, sanitation and Environment nutrition sustainability Conservation and management of natural resources 33
Slide 35: Contact Us
Contact Us About Neogen Chemicals Limited 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-based specialty chemicals. Its specialty chemicals product offerings comprises of Organic as well as Ino
Slide 36: Thank You
Thank You