Neogen Chemicals (NEOGEN) Q4 23/24 earnings summary

Executive summary

• FY24 revenue held broadly steady as higher volumes and customer additions offset lower bromine and lithium prices; consolidated PAT declined amid higher depreciation and interest costs.

• Battery Materials expansion advanced, with initial shipments of lithium electrolyte salts and a major greenfield project planned at Pakhajan.

Financial highlights

• Consolidated FY24 revenue was Rs. 690.7 crore, up 1% YoY; EBITDA was Rs. 110.2 crore, down 1%, and PAT was Rs. 35.6 crore, down 29%.

• Consolidated Q4 FY24 revenue was Rs. 199.7 crore, down 2% YoY; EBITDA rose 10% to Rs. 35.8 crore and PAT rose 18% to Rs. 16.9 crore.

• Consolidated FY24 EPS was Rs. 13.96, down 30% YoY; standalone revenue rose 1% to Rs. 696.4 crore, EBITDA rose 4% to Rs. 115.6 crore and PAT fell 12% to Rs. 44.1 crore.

• FY24 gross margin improved to 44.6%; consolidated EBITDA margin was 15.9%, down 33 bps YoY.

Outlook and guidance

• Pakhajan greenfield project is targeted for commissioning in H2 FY26: 30,000 MT electrolyte and 3,000 MT lithium electrolyte salts and additives capacity.

• Battery Materials capacities at Dahej include 400 MT electrolyte salts and additives in FY24, with planned electrolyte capacity of 2,000 MT in FY25 and phased salts capacity up to 2,500 MT by Q4 FY25.

• Planned FY24–FY26 capacity CAPEX is Rs. 1,500 crore, with peak revenue potential of Rs. 2,500–2,950 crore, depending on lithium prices.

• Priorities include expanding organic and inorganic chemicals, CSM and advanced intermediates, complex chemistries, and Battery Materials.