Neogen Chemicals - Q4FY21 First Cut - ICICI Direct

(CMP: Rs. 951, MCap: Rs. 2218 crore)

Numbers are above our estimates across all parameters.

Q4FY21 Earnings Summary

- Neogen chemicals reported topline growth of 13% YoY to Rs. 92.7 crore against our expectations of Rs. 87.1 crore. The growth was driven by higher growth in the inorganic chemical segment (+31% YoY) largely on account of better volume growth. The revenue from organic chemical was up by 7% YoY to Rs. 72 crore. The growth from organic chemical segment remained subdued owing to capacity constraint

- OPM for the quarter expanded by 80bps YoY to 20% leading to EBITDA growth of 17% YoY to Rs. 18.5 crore as against our estimates of Rs. 17.2 crore. There was gross margins expansion of 386bps YoY & 196bps QoQ to 43.5% largely on account of higher realisation and better product mix

- Lower taxes (30% v/s 35% in Q4FY20) boosted bottom-line growth, which was up by 28% YoY to Rs. 9.3 crore against our estimates of Rs. 8.4 crore

Going ahead, with the commissioning of phase 1 capex of organic chemical at Dahej, we expect CRAMS revenue would grow considerably, which should support the overall performance of the company.

We would be coming out with a detailed report soon.

Source : Equity Bulls

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