Q1 2025 Neogen Chemicals Ltd Earnings Call Transcript
Key Points
- Neogen Chemicals Ltd (BOM:542665) reported a 9% year-on-year increase in consolidated revenue, reaching INR180 crores.
- EBITDA rose by 10% to INR31 crores, translating to an EBITDA margin of 17.1%.
- Profit after tax increased by 18%, amounting to INR11.5 crores.
- The company successfully shifted focus to non-agrochemical applications, which offered more stable demand amid weak global agrochemical markets.
- Neogen Chemicals Ltd (BOM:542665) has achieved financial closure for the bulk of its CapEx for the greenfield battery chemicals facility, with favorable terms.
- Inorganic revenues declined by 14% due to significant drops in bromine and lithium raw material prices.
- Despite the revenue growth, the company faced higher employee costs and other expenses, impacting overall profitability.
- The business landscape remains challenging with low China demand, economic uncertainties, and supply chain disruptions.
- The company’s expansion initiatives are still in the early stages, with some capacities yet to be fully commissioned and approved.
- There is a potential risk of delay in achieving full utilization of new battery capacities, depending on the pace of customer approvals and market conditions.
Ladies and gentlemen, good day, and welcome to the Neogen Chemicals Q1 FY25 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 evening, everyone, and welcome to Neogen Chemicals Q1 FY25 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 is
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