Neogen Chemicals Limited has informed the Exchange that Board of Directors at its meeting held on May 17, 2025, recommended Final Dividend of 1 per equity share.
NEOGEN · price
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Neogen Chemicals' Board has recommended a final dividend of Re. 1 per equity share for FY2024-25, subject to shareholder approval. The Board also approved audited standalone and consolidated financial results for Q4 and FY ended March 31, 2025, with auditors issuing an unmodified opinion. Standalone revenue from operations grew ~10% YoY to Rs. 773.65 cr, while profit after tax rose ~18% to Rs. 48.41 cr (EPS Rs. 18.35 vs Rs. 16.10). A major fire at the Dahej SEZ plant on March 5, 2025 caused a gross loss of Rs. 348.16 cr, partially offset by an insurance claim of Rs. 334.60 cr, resulting in a net exceptional charge of Rs. 13.56 cr. The company also announced the formation of a new wholly-owned subsidiary, Neogen Morita New Materials Limited, to enter the lithium-ion battery electrolyte salts space, with an advanced joint venture discussion underway with Morita Chemicals Industries of Japan.
The dividend is modest and represents a meaningful reduction from the prior year's payout (FY24 cash outflow of Rs. 5.28 cr implies a higher per-share distribution last year), which may be seen negatively by income-focused investors. However, the strong FY25 earnings growth, aggressive expansion into the high-potential lithium-ion battery materials space via the Morita JV, and largely insurance-covered fire loss paint a constructive long-term picture for shareholders.