Q4 2024 Neogen Chemicals Ltd Earnings Call Transcript
Key Points
- Neogen Chemicals Ltd (BOM:542665) reported a 10% year-on-year increase in EBITDA for Q4 FY24, reaching INR36 crore.
- The company achieved a profit after tax of INR17 crore for Q4 FY24, marking an 18% year-on-year growth.
- Neogen Chemicals Ltd (BOM:542665) successfully commenced trial production for its 2,000 metric tonne electrolyte plant and 400 metric tonne lithium salts plant.
- The company has secured a licensing agreement with MUIS Japan and raised capital through a preferential offering to support its expansion initiatives.
- Neogen Chemicals Ltd (BOM:542665) has started shipping small batches of lithium electrolyte salts to global customers, with positive feedback on product quality.
- Inorganic revenues declined by 53% in Q4 FY24, primarily due to significant drops in bromine and lithium raw material prices.
- The company faced a tough operating environment characterized by cheap imports, inventory corrections, geopolitical tensions, and logistical disruptions.
- Working capital increased significantly, attributed to unsold inventory at BuLi Chem and longer payment terms in the domestic market.
- High depreciation and interest expenses linked to ongoing capital expenditure within the Battery Material divisions impacted the profit after tax for FY24.
- The company is still awaiting approvals for commercial products from its new facilities, which could delay revenue realization.
Ladies and gentlemen, good day, and welcome to Neogen Chemicals Limited Q4 FY24 earnings conference call. (Operator Instructions) Please note that this conference is being recorded. I now hand the conference over to Mr. Nishid Solanki from CDR India. Thank you, and over to you, sir.
Thank you. Good afternoon, everyone, and welcome to Neogen Chemicals Q4 FY24 earnings conference call for analysts and investors. Today, we are joined by senior members of the management team, including Dr. Harin Kanani, Managing Director; and Mr. Ketan Vyas, Chief Financial Officer. We will commence the call with opening thoughts from the management team, post which we shall open the forum for Q&A where the management will be addressing queries of the participants.
Before we commence, I would like to share our standard disclaimer. Certain statements made or discussed on the conference call today may be forward-looking in nature. The actual results could vary from these forward-looking statements. A detailed disclaimer in this regard
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