Neogen Chemicals Limited — PPTs, 13-11-2024: Investor Presentation

**Financial Highlights:**

In Q2 FY25, Neogen Chemicals reported consolidated revenues of ₹193.4 crore, a 20% increase compared to Q2 FY24. EBITDA rose by 33% to ₹34.6 crore, driven by improved plant throughput and operational efficiencies, resulting in a healthy EBITDA margin of 17.9%. The standalone results also indicated strong growth, with revenues of ₹174.5 crore and an EBITDA of ₹32.9 crore, reflecting a 26% jump in profits.

**Strategic Initiatives and Growth Drivers:**

The company is advancing in its expansion initiatives, particularly in the battery chemicals segment. Neogen Ionics has commenced operations at its Dahej facility, focusing on lithium electrolyte salts. Initial commercial sales have commenced, and plans for a significant 2,500 MT capacity expansion are underway, aligning with growing demand in India's EV sector fueled by government incentives.

**Business Developments:**

Key operational achievements include the commissioning of a lithium electrolyte plant and positive demand trends in both domestic and export markets. The recent acquisition of BuLi Chem enhances Neogen's capabilities in organolithium products, serving various industries.

**Market Position and Competitive Advantage:**

Neogen Chemicals stands out as a leading manufacturer of bromine and lithium-based specialty chemicals. Its established relationships with suppliers and a robust R&D framework bolster its position to capitalize on the surging battery materials market.

**Investor Implications:**

The company's financial resilience in a challenging environment highlights its robust growth strategy, particularly in battery chemicals, which is poised for substantial demand increases as the EV market expands. Neogen's commitment to ongoing investment in innovation could provide significant long-term value for investors.