Neogen Chemicals Q4 net down 11% at ₹8 crore

Our Bureau Mumbai | Updated on May 29, 2020

Neogen Chemicals has reported its net profit was down 11 per cent in March quarter at ₹8 crore against ₹9 crore in the same period last year due to Covid impact.

However, total income of the company was up two per cent at ₹82 crore (₹80 crore).

It has announced higher dividend of ₹2 per share compared to ₹1.50 paid last year.

For the FY 2020, Neogen Chemicals net profit was up 38 per cent at ₹29 crore (₹21 crore) on a turnover of ₹ 306 crore (₹240 crore), an increase of 27 per cent.

Haridas Kanani, Chairman & Managing Director, Neogen Chemicals, said the company has managed to sustain growth momentum in both organic and inorganic chemicals segment.

The company has started commercial production of inorganic chemicals at the newly-commissioned facility at Dahej SEZ. Given the company's wide portfolio offerings and fresh capacity, he said it is well placed to capture the ongoing growth opportunities present in the end-user industries.

Harin Kanani, Director, Neogen Chemicals, said though the company was impacted by Covid, it started production by mid-May and reached production utilisation of 70-80 per cent against peak utilization levels of 80 per cent.

The company will deliver further growth in the coming year backed by revenues from the newly constructed Lithium Inorganic facility at Dahej SEZ and de-bottlenecking initiatives at the existing plants.

The performance will be further bolstered by upcoming organic expansion facility at Dahej SEZ for organic chemicals manufacturing plant for which construction work has already started and will come in towards the end of the next financial year.

While on a quarterly basis, Neogen Chemicals suffered a minor setback due to higher impact of Covid-19 related disruption, it has already started improving performance, he said.

Published on May 29, 2020

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