Neogen Chemicals Limited — Important, 21-11-2024: General Updates

Earnings Conference Call Transcript for Q2 FY25 highlights impressive performance despite market challenges. Neogen Chemicals reported a 20% YoY revenue increase to ₹193 crore, and EBITDA rose 33% to ₹35 crore, achieving margins of 17.9%. Profit after tax also grew by 30% to ₹11 crore.

### Financial Highlights

- **Revenues:** ₹193 crore, up 20% YoY.

- **EBITDA:** ₹35 crore, 33% increase YoY; margins improved 180 bps.

- **Profit After Tax:** ₹11 crore, 30% growth YoY.

### Strategic Initiatives and Growth Drivers

Neogen is focusing on expanding its battery chemicals capacity, with the commissioning of 400 MTPA for lithium electrolytes and a new plant in Dahej capable of producing 2,000 MT of electrolyte. Additionally, a Greenfield battery material facility is under construction with Mitsubishi, enhancing long-term prospects in India's growing EV market.

### Business Developments

The company reported strong volume growth in its core chemicals business, particularly in lithium derivatives and bromine products. Adjusted figures suggest organic chemicals could have performed even better without the impact of lower raw material prices.

### Market Position and Competitive Advantage

Neogen remains competitive in domestic and international markets, benefiting from innovative developments in electrolyte formulations tailored for diverse battery applications. Ongoing collaboration with customers reinforces its market position.

### Investor Implications

With a positive outlook for revenue growth driven by enhanced capacity and strong demand from the EV sector, Neogen's focus on innovation and strategic investments suggest significant potential for long-term shareholder value. The projected revenue for battery chemicals in FY26 ranges from ₹400 to ₹500 crore, providing a solid foundation for growth.