Neogen Chemicals Q3 FY22 PAT up by 23% to Rs 10.5cr

Neogen Chemicals Limited has posted profit after tax (PAT) of INR 10.5 crores for the third quarter of the fiscal year 2022 (Q3 FY22), an increase of 23% compared to INR 8.5 crores in Q3 FY21.

The Indian bromine-based and lithium-based specialty chemicals manufacturer said that its PAT growth was muted because of higher finance costs and depreciation which were in-line with new capacities added during 2021. The company expects to boost it after the new plants operate at optimal utilization levels.

Neogen Chemicals said that its earnings per share for the reported quarter was INR 4.49 per share, compared to INR 3.66 per share in Q3 FY21.

The company’s revenues for Q3 FY22 were INR 132.6 crores, which is a 56% increase compared to INR 85.2 crores in the same period of the previous fiscal year.

During the third quarter ended 31 December 2021, Neogen Chemicals had raised INR 225 crores by issuing up to 16,04,710 equity shares on preferential allotment basis at an issue price of INR 1,402.12 per equity share.

Neogen Chemicals said that the company’s performance was fuelled by higher contribution from the recently commissioned phase I and II expansions at its Dahej site. The specialty chemicals manufacturer added that demand, as well as realization, were favourable, which were steered by higher product off-take in major end user industries.

Haridas Kanani — Chairman and Managing Director of Neogen Chemicals said: “I am delighted to share that we have demonstrated robust all-round performance during the quarter under review steered by incremental gains from recently commissioned Phase I & II greenfield expansions at SEZ Dahej, Gujarat.

“Our revenue growth stood at 56%, translating into highest-ever quarterly revenue run rate of Rs. 133 crore. I am particularly happy that we reported a strong performance despite a challenging macro environment mirrored by sudden spike in utility costs, combined with onset of Omicron variant.”