Neogen Chemicals Ltd's revenue for Q4 FY22, revenues stood at Rs. 157 crore, up by 69% thanks to strong topline performance which was driven by capacity expansion initiatives, combined with realization gains for select products. 

 

The board has approved a final dividend of Rs. 2.75 per share (27.5%) for FY22. Profit after tax (PAT) stood at Rs. 15.6 crore during the quarter as compared to Rs. 9.3 crore in Q4 FY21. For FY22, profit after tax stood at Rs. 44.6 crore, higher by 42% over Rs. 31.3 crore in FY21. 

 

PAT performance was in-line with operational performance of the company, further bolstered by lower effective tax rate due to higher contribution from SEZ facility. Depreciation increased during the quarter commensurate to the newer capacities added. 

 

Earnings per share (EPS) for the quarter stood at Rs. 5.50 per share (Rs. 3.99 per share in Q4 FY21). For FY22, EPS came in at Rs. 18.70 per share (Rs. 13.45 per share in FY21).

 

Based on solid performance reported during the year, the board of directors has approved a final dividend of Rs. 2.75 per equity share (27.5%) for FY22. This has increased over previous years in spite of external headwinds linked to higher RM prices and utility costs.

 

Commenting on the Q4 & FY22 performance, Haridas Kanani, Chairman & Managing Director, Neogen Chemicals said, “We are glad to have concluded the year on a high note despite unprecedented challenges posed by inflation in raw material prices and utility costs, as well as supply-chain disruptions. We have navigated through all these shocks by staying nimble and sharpening our focus to create a high-quality enterprise with unmatched execution capabilities. During the year, we scaled new heights and achieved our revenue benchmark by growing 45% over FY21. Profitability metrics mirrored the momentum in revenues, further bolstered by manufacturing efficiencies and prudent cost management."

 

"Our newly commissioned organic MPP plants (Phase I & II) are now stabilizing with sustained improvement in utilisation levels thereby giving us the confidence of achieving the revenue potential of Rs. 725-750 crore as targeted in FY24 on a stable lithium price basis. As planned, we are executing orders that are more customised in nature and go through multi-stage processes with complex chemistries involved. On the other hand, we are satisfactorily progressing with our pilot plant initiative of electrolyte manufacturing for lithium-Ion batteries. In the interim, we are closely studying the market for battery materials and evaluating promising opportunities in the sector," added Kanani.