NEOGEN CHEMICALS 2023-24 Annual Report Analysis

Wed, 18 Sep

NEOGEN CHEMICALS has announced its results for the year ended March 2024. Let us have a look at the detailed performance review of the company during FY23-24.

NEOGEN CHEMICALS Income Statement Analysis

• Operating income during the year rose 0.7% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 1.3% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 16.0% in FY24 as against 16.3% in FY23.
• Depreciation charges increased by 41.2% and finance costs increased by 45.3% YoY, respectively.
• Other income grew by 67.9% YoY.
• Net profit for the year declined by 28.7% YoY.
• Net profit margins during the year declined from 7.3% in FY23 to 5.2% in FY24.

NEOGEN CHEMICALS Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	6,862	6,907	0.7%
Other income	Rs m	45	75	67.9%
Total Revenues	Rs m	6,906	6,981	1.1%
Gross profit	Rs m	1,117	1,102	-1.3%
Depreciation	Rs m	162	229	41.2%
Interest	Rs m	289	421	45.3%
Profit before tax	Rs m	710	528	-25.7%
Tax	Rs m	211	171	-18.7%
Profit after tax	Rs m	500	357	-28.7%
Gross profit margin	%	16.3	16.0
Effective tax rate	%	29.6	32.4
Net profit margin	%	7.3	5.2

Don't Miss: Key Information for Long-term Investors

NEOGEN CHEMICALS Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 5 billion as compared to Rs 4 billion in FY23, thereby witnessing an increase of 28.6%.
• Long-term debt down at Rs 1 billion as compared to Rs 1 billion during FY23, a fall of 3.8%.
• Current assets rose 19% and stood at Rs 8 billion, while fixed assets rose 70% and stood at Rs 7 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 15 billion as against Rs 11 billion during FY23, thereby witnessing a growth of 39%.

NEOGEN CHEMICALS Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	4,825	7,603	57.6
Current Liabilities	Rs m	4,097	5,270	28.6
Long-term Debt	Rs m	1,291	1,242	-3.8
Total Liabilities	Rs m	10,538	14,614	38.7
Current assets	Rs m	6,558	7,837	19.5
Fixed Assets	Rs m	3,980	6,777	70.3
Total Assets	Rs m	10,538	14,614	38.7

NEOGEN CHEMICALS Cash Flow Statement Analysis

• NEOGEN CHEMICALS's cash flow from operating activities (CFO) during FY24 stood at Rs -292 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -2 billion, an improvement of 128.2% on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs 2 billion, an improvement of 136% on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs -82 million from the Rs -245 million net cash flows seen during FY23.

NEOGEN CHEMICALS Cash Flow Statement 2023-24

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-23	Mar-24
Cash Flow from Operating Activities	Rs m	-304	-292	-
Cash Flow from Investing Activities	Rs m	-945	-2,156	-
Cash Flow from Financing Activities	Rs m	1,003	2,365	135.8%
Net Cash Flow	Rs m	-245	-82	-

Current Valuations for NEOGEN CHEMICALS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 13.5, an decline from the EPS of Rs 20.0 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 1,842.4, stands at 130.7 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 6.4 times, while the price to sales ratio stands at 7.0 times.
• The company's price to cash flow (P/CF) ratio stood at 67.6 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*
Sales per share (Unadj.)	Rs	275.1	261.8
TTM Earnings per share	Rs	20.0	13.5
Diluted earnings per share	Rs	18.9	13.5
Price to Cash Flow	x	51.2	67.6
TTM P/E ratio	x	67.9	130.7
Price / Book Value ratio	x	7.5	5.2
Market Cap	Rs m	36,408	39,571
Dividends per share (Unadj.)	Rs	3.0	2.0

Ratio Analysis for NEOGEN CHEMICALS

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.5x during FY24, from 1.6x during FY23. The current ratio measures the company's ability to pay short-term and long-term obligations.

Interest Coverage Ratio: The company's interest coverage ratio deteriorated and stood at 2.3x during FY24, from 3.5x during FY23. The interest coverage ratio of a company states how easily a company can pay its interest expense on outstanding debt. A higher ratio is preferable.

• Profitability Ratios

Return on Equity (ROE): The ROE for the company declined and down at 4.7% during FY24, from 10.4% during FY24. The ROE measures the ability of a firm to generate profits from its shareholders capital in the company.

Return on Capital Employed (ROCE): The ROCE for the company declined and down at 10.7% during FY24, from 16.3% during FY23. The ROCE measures the ability of a firm to generate profits from its total capital (shareholder capital plus debt capital) employed in the company.

Return on Assets (ROA): The ROA of the company declined and down at 5.3% during FY24, from 7.5% during FY23. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*
Current ratio	x	1.6	1.5
Debtors’ Days	Days	9	15
Interest coverage	x	3.5	2.3
Debt to equity ratio	x	0.3	0.2
Return on assets	%	7.5	5.3
Return on equity	%	10.4	4.7
Return on capital employed	%	16.3	10.7

To see how NEOGEN CHEMICALS has performed over the last 5 years, please visit here.

NEOGEN CHEMICALS Share Price Performance

Over the last one year, NEOGEN CHEMICALS share price has moved up from Rs 1,778.4 to Rs 1,842.4, registering a gain of Rs 64.0 or around 3.6%.

Overall, the S&P BSE SENSEX is up 23.2% over the year.

(To know more, check out historical annual results for NEOGEN CHEMICALS and quarterly results for NEOGEN CHEMICALS)