Neogen Chemicals has reported marginal fall in September quarter net profit at ₹7.37 crore against ₹7.70 crore recorded in the same period last year, on the back of an increase in overall expenses.

Revenue from operations were up ₹82 crore against ₹77 crore logged last year. Overall expenses increased to ₹72 crore (₹66 crore). Compared to the June quarter, net profit was up by 23 per cent, and revenue increased six per cent.

The higher revenue was delivered despite the impact of Covid and limitations in available capacity in Speciality Organic Chemicals. Revenue growth was driven by better product mix, which resulted in increased demand for new products from existing and new customers.

Haridas Kanani, Chairman, Neogen Chemicals said there has been a revival in demand from across clients in key end-user industries, which enable the company to use resources efficiently.

The organic chemicals business is currently running close to optimal levels; while the inorganic business was gradually scaling up post-expansion. The company was simultaneously driving forward on the planned doubling of organic capacity.

“We hope to complete the ongoing capacity expansion by the end of Q4 FY21 which will double our existing organic reactor capacity, despite the disruption in normal activity over the last few months,” Kanani said.

The company is planning next round of organic production capacity expansion with a capex of ₹55 crore at Dahej SEZ unit by next fiscal, and has the potential to expand revenue by ₹150 crore.

This will propel Neogen to a leading manufacturer of Bromine-based specialty chemicals and a reliable partner for contract manufacturing.

Related Topics
comment COMMENT NOW