Neogen Chemicals Limited — Updates, 13-11-2024: Press Release

Neogen Chemicals Limited reported strong performance in Q2 FY25, with revenues rising 20% to ₹193 crore, driven by increased volumes in core operations and contributions from BuLi Chem. Despite challenges like weak pricing in the agchem sector, demand for other applications showed positive trends. The company began initial commercial sales of Lithium Salts and Electrolytes through Neogen Ionics, setting the stage for substantial growth in the future.

EBITDA improved 33% year-on-year to ₹35 crore, supported by higher throughput and operational efficiencies, with margins at a healthy 17.9%. Profit after tax surged 38% to ₹11 crore, bolstered by robust operating performance. With ongoing capital expenditures intensifying in Battery Chemicals, increased depreciation and interest costs are anticipated.

Looking ahead, Neogen is strategically phasing the commissioning of its greenfield Battery Materials plant in Dahej and is in talks for long-term contracts with battery manufacturers for electrolyte supply. The strong demand for non-Chinese sources of Lithium Salts and Electrolytes reflects the company's adaptability to current market dynamics. Investors may view these developments as indicative of ongoing potential growth.