Neogen Chemicals Limited (Neogen) reported a strong financial performance for the quarter ended 31st December, 2024.

In Q3 FY25, revenue was higher by 22% to Rs. 201 crore boosted by volume growth in the base business and a healthly contribution from BuLi Chem, which is now a part of Neogen Chemicals standalone. This was achieved despite challenging pricing conditions, highlighting the resilience of the core operations and the increasing strategic importanczie of BuLi Chem. The battery chemicals arm (Neogen Ionics) has commenced lithium salt exports, contributing to the topline. Neogen Ionics is positioned for substantial growth from next financial year driven by new capacities.

EBITDA came in at Rs. 34.6 crore, an increase of 71%. Strong EBITDA growth was a result of increased plant utilization, operational efficiencies and lower employee costs. Operating leverage kicked in due to higher volume achieved on an optimized cost structure. Cost intensity in Neogen Ionics reduced during the quarter following the commencement of export sales. Margins remained strong at 17.2% despite weak pricing. Absolute EBITDA on per kilo basis remained stable.

Profit after tax stood at Rs. 10 crore, higher by 844%. Robust PAT growth was achieved through a combination of solid operating performance and a favorable base effect resulting from one-time expenses recognized in Q3 of the prior year. Continued high CAPEX in Neogen Ionics resulted in increased depreciation and interest expense on consolidated basis.

Earnings per share (EPS) for Q3 FY25 stood at Rs. 3.80 per share (Rs. 0.41 per share in Q3 FY24).