Neogen Chemicals Limited remained on a high growth trajectory during the Q2 FY23 quarter ended 30th September, 2022 by reporting revenues of Rs 148.1 crore, up 31% YoY. 

At Rs. 296 crore, revenues registered a growth of 50% in H1 FY23, over H1 FY22 revenue of Rs. 197.8 crore. The strong growth in revenues was on account of continued high momentum in demand and incremental gains from augmented capacities as compared to the same period previous year. The Company has also been adding products that enjoy better value and demand in its product mix.

EBITDA at Rs. 48.9 crore in H1 FY23 was up 35% despite inflationary cost pressures in key raw materials and utilities. The company delivered a healthy EBITDA performance mainly as the company was able to pass on the significant cost increase in the prices of Lithium raw materials to customers.

PAT performance was in-line considering the impact of high depreciation and finance costs due to new plant addition and increase in interest rates. Earnings per share (EPS) for H1 FY23 stood at Rs. 8.41 per share (Rs. 7.94 per share in H1 FY22).

Commenting on the Q2 & H1 FY23 performance, Haridas Kanani, Chairman & Managing Director, Neogen Chemicals said, “We have reported superior performance during the first half of fiscal year 2023 reflected by 50% growth in revenues, 35% improvement in EBITDA and 13% increase in Profit After Tax. This is an outcome of collective efforts put in by our teams to ensure that we expand our capabilities to the fullest and offer best possible value to our long-standing customers. The performance was fueled by continued positive demand outlook from key end-user segments, further aided by gains from incremental capacity available over the same period last year. All this was achieved in an environment that was premised on prolonged inflationary headwinds in key raw materials and other utilities."

"Our Capex initiatives are underway, and construction is progressing as expected both in lithium-ion battery chemicals and existing business operations. We aim to make significant inroads in the chosen products and chemistries to elevate our performance trajectory. We have been in constant dialogue with our customers and have received positive feedback for our products. Sizeable Capex plans will be lined up in the second half of the current fiscal year, based on how final discussion progresses for lithium-ion battery materials space," commented Kanani.

"The medium-to-long term prospects look favorable and Neogen is well poised to drive higher topline and profitability based on strong execution abilities. This is in addition to benefits emerging from upcoming projects that will start contributing from next year. The demand landscape remains promising and Neogen will channelise its experience to deliver sustained performance in the years to come,” added Kanani.