Neogen Chemicals Q3 FY23 profit after tax up by 40% to Rs 15cr

Neogen Chemicals Limited has reported a profit after tax (PAT) of INR 14.7 crores for the third quarter of the fiscal year 2023 (Q3 FY23), a year-over-year (YoY) growth of 40%.

According to the Indian specialty chemicals producer, the increase in profit after tax reflected the operational performance, impacted moderately by high depreciation related to additions in new capacity and an increase in finance costs because of elevated rates of interest.

In the nine months ended 31 December 2022 (9M FY23), Neogen Chemicals registered 23% YoY growth in profit after tax to INT 35.7 crores and 46% YoY growth in revenues to INR 482.3 crores.

Neogen Chemicals said that its earnings per share (EPS) for 9M FY23 was INR 14.29 per share, compared to INR 12.43 per share in 9M FY22.

Haridas Kanani — Neogen Chemicals Chairman and Managing Director said: “We registered solid performance trajectory in Q3 FY23, bolstered by 40% Y-o-Y gains in revenue with healthy profitability, where both EBITDA and PAT increased by 27% and 40% Y-o-Y respectively. Our performance has been consistent, and we are witnessing accelerated built up in our business based on strong visibility and continued positive demand environment.

“Our capabilities in chosen chemistries are exceptional and well appreciated by our partner customers. In-line with our focus on high value-addition, we are scaling up revenues across both advanced intermediates and custom synthesis manufacturing as reflected in better profitability trends.

“This was achieved despite impact of continued high inflation in some input and utility costs during the period under review.”

Neogen Chemicals, which produces bromine-based and lithium-based specialty chemicals, said that it will invest a total of around INR 450 crores in new projects. These include expansion of the company’s electrolyte capacity to 5,000 MT by June 2024, expansion of specialty lithium salts capacity to 1,000 MT by June 2024, and the greenfield expansion of electrolyte and specialty lithium salts at a new site for dedicated battery materials.