Neogen Chemicals Limited (BSE: 542665, NSE: NEOGEN), a specialty chemicals manufacturer, has announced its unaudited financial results for the third quarter (Q3 FY25) and nine-month period ending December 31, 2024. The company reported robust revenue growth and improved profitability on both standalone and consolidated bases.
Financial Performance Overview
Standalone Results (₹ in Crores)
Particulars
Q3 FY25
Q2 FY25
Q3 FY24
9M FY25
9M FY24
FY24 (Audited)
Revenue from Operations
200.41
193.14
164.47
569.90
491.12
701.42
Total Income
202.46
195.38
165.97
577.00
496.38
709.50
Profit Before Tax (PBT)
20.05
19.82
7.16
58.60
34.11
59.46
Profit After Tax (PAT)
14.41
14.86
2.25
43.21
21.88
41.13
Earnings Per Share (EPS) (₹)
5.46
5.63
0.87
16.38
8.66
16.10
Revenue Growth: The company’s revenue from operations rose 21.9% YoY to ₹200.41 crore in Q3 FY25.
Profit Surge: Net profit jumped 540.4% YoY to ₹14.41 crore compared to ₹2.25 crore in Q3 FY24.
EPS Improvement: EPS grew significantly to ₹5.46 in Q3 FY25 from ₹0.87 in Q3 FY24.
Consolidated Results (₹ in Crores)
Particulars
Q3 FY25
Q2 FY25
Q3 FY24
9M FY25
9M FY24
FY24 (Audited)
Revenue from Operations
201.43
193.36
164.44
574.74
491.02
690.67
Total Income
202.49
194.15
166.02
578.16
496.28
698.14
Profit Before Tax (PBT)
15.25
15.48
5.70
46.48
30.30
52.77
Profit After Tax (PAT)
10.01
10.96
1.06
32.42
18.72
35.65
Earnings Per Share (EPS) (₹)
3.80
4.15
0.41
12.29
7.41
13.95
Revenue Growth: Consolidated revenue increased 22.5% YoY in Q3 FY25.
Profitability: Net profit surged 844.3% YoY, reaching ₹10.01 crore compared to ₹1.06 crore in Q3 FY24.
EPS Expansion: Earnings per share improved to ₹3.80 from ₹0.41 in the previous year.
Key Business Developments
Successful Amalgamation of Buli Chemicals India Pvt. Ltd.
The National Company Law Tribunal (NCLT) approved the merger of Buli Chemicals India Pvt. Ltd.with Neogen Chemicals Ltd.
Effective date: January 31, 2025 (appointed date: April 1, 2024).
This move is expected to enhance operational synergies and financial strength.
Improved Operational Efficiency
The cost of materials consumed remained stable at ₹152.98 crore in Q3 FY25.
Employee expenses increased to ₹14.17 crore, reflecting investments in talent and expansion.
Finance costs rose slightly to ₹13.07 crore, indicating higher debt servicing.
Growth in Subsidiary Performance
Neogen Ionics Limited and Neogen Chemicals Japan Corporation contributed positively.
Joint venture Dhara Fine Chem Industries showed steady performance.
Management Commentary
Dr. Harin Kanani, Managing Director, Neogen Chemicals Ltd., stated: "We have delivered yet another quarter of strong performance, driven by sustained demand, operational efficiency, and strategic initiatives, including the successful amalgamation of Buli Chemicals. We remain focused on expanding our specialty chemicals portfolio and enhancing our global footprint.”
Strategic Outlook
Expansion Plans: The company plans to scale up production to meet rising demand in the specialty chemicals and lithium-ion battery materials segments.
Operational Synergies: The Buli Chemicals merger will optimize operations, reducing costs and improving margins.
Investor Confidence: Strong financial results and strategic moves are expected to boost investor sentiment in the coming quarters.
Conclusion
Neogen Chemicals Ltd. reported an impressive financial performance in Q3 FY25, showcasing strong revenue growth, improved profitability, and successful business integration. The company’s continued focus on expansion and operational efficiency places it in a strong position for sustained future growth.