Neogen Chemicals Ltd (NSE: NEOGEN) Q4 2025 Earnings Call dated May. 19, 2025
Corporate Participants:
Unidentified Speaker
Nishid Solanki — Investor Relations, CDR India
H. T. Kanani — Chairman & Managing Director
Gopikrishnan Sarathy — Chief Financial Officer
Analysts:
Unidentified Participant
Ankur — Analyst
Naushad Chaudhary — Analyst
Abhijit Akella — Analyst
Arun Prasad — Analyst
Archit Joshi — Analyst
Rohit Nagraj — Analyst
Nilesh Ghuge — Analyst
Jason Soans — Analyst
Presentation:
operator
Ladies and gentlemen, good day and welcome to The Neogen Chemicals Limited Q4FY25 earnings conference call. As a reminder, all participant lines will be in the listen only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during this conference please signal an operator by pressing STAR and then zero on your touchtone phone. Please note that this conference is being recorded.
I now hand the conference over to Mr. Nishit Solanki from CDR India. Thank you. And over to you sir.
Nishid Solanki — Investor Relations, CDR India
Thank you. Good evening everyone and welcome to Neogen Chemicals Q4FY25 earnings conference call for analysts and investors. Today we are joined by senior members of the management team including Dr. Harin Kanani, Managing Director, Mr. Anula Sunara, Director and Mr. Gopi Krishnan Sarati, Chief Financial Officer. We will commence the call with opening talks from the management team post which we shall open the forum for Q and A where the management will be addressing queries of the participants.
Before we come in, I would like to share a standard disclaimer. Certain statements made or discussed on the. Conference call today may be forward looking statements. The actual results may vary from these forward looking statements. A detailed disclaimer in this regard is available in Neogen Chemicals Q4FY25 earnings presentation which has been shared earlier and uploaded. On stock exchange website.
I would now like to invite Dr. Harin Kanani to share his perspectives. Thank you. And over to you sir.
H. T. Kanani — Chairman & Managing Director
Thank you. Nishid. Good evening everyone and welcome to our earnings call for Q4 and full year FY25. We appreciate you taking the time to join us today to discuss our financial performance and provide an update on our strategic initiatives. I will begin with a review of our performance for fiscal year 2025. I am pleased to report that we concluded the year on a positive note achieving 13% revenue growth and 24% improvement in EBITDA. This performance is satisfying as we accomplish it against a difficult global industry backlog and which led to weak pricing trends as well as fire incident which happened towards the end of the quarter.
Despite this headwinds, we did observe some pockets of domestic demand resilience that helped partly mitigate the impact our ability to deliver. Amidst this challenge was an outcome of our agility. We swiftly navigated by pivoting towards product applications with favorable demands like semiconductor, flavor, fragrance and select opportunities in AT Chem Pharma and Industrial CSM among others. During the quarter and full year, both organic and inorganic chemical segments demonstrated steady volumes. While global pricing remained a factor, our ability to capture greater market share through increased volumes underscored the strength of our product offering and operational efficiencies. Now, before providing updates on expansion initiatives, let me share some important developments.
On March 5, 2025, a fire occurred at New Engine Chemicals Dai facility which impacted our main manufacturing plant NPP3 warehouse and tank pumps. While there were no injuries or casualties, the production at the plant remained suspended. We are fully covered by insurance for both asset damage and business interruption. To mitigate the impact, we have already shifted production of certain products to our other sites subject to customer approvals and construction has commenced on a replacement plant at an adjacent location within the same site to be operational by Q4FY26. While this incident has necessitated a revision of our FY26 revenue guidance of rupees 775 to 850 crore, we are taking all necessary steps to restore normalcy and minimize disruption.
Following eproval for brownfield expansion, we have more than doubled the capacity of Beaulie Chemical facilities at Patanjeru, Hyderabad from 120 metric tons active to 300 metric ton active through de bottlenecking this enhancement of manufacturing capability for critical organolithium compounds which are essential reagents in the production of complex pharma, agrochemical and semiconductor intermediates. Further, in a major development, we are incorporating a wholly owned subsidiary of Neogen Ionics, namely Neogen Morita New Materials Ltd. Subject to the name approval by ROC. The objective is to address growth opportunities in medium and battery material space especially related to electrolyte soils needed for internal consumption for electrolytes as well as to meet global market demand.
In addition to this, NeoGenionics Ltd. Is in advance discussion with Morita Chemical Industries Co. Ltd. Of Japan for formation of a joint venture company in India and to facilitate the same, Neogen Ionics is in the process of formation of this wholly owned subsidiary. Shifting our focus to strategic growth drivers, I will provide update on expansion initiatives. New capacity of 400 metric tons per annum of lithium electrolyte salts and additives and 2000 metric ton of electrolyte for Dahej. For salts, 200 metric tons per annum capacity has been commissioned with the first approved material already shipped to the customer.
Trial production is ongoing for another 200 metric tons per annum. Further expansion of salts includes 1100 metric tons to be commissioned by September 25th and another 1000 metric ton by March 2026. For electrolyte, 2000 metric ton has been fully commissioned. Major ATC battery manufacturer has commenced Trial production and commercial production is expected to begin by Q1 or Q2 FY26 and our initial capacity is well aligned with their requirement. Update on the greenfield battery material facility using MUIS technology, construction is moving swiftly with civil work, erection and engineering phase nearing completion. The modular plant is also completed nearly with structural work substantially finished.
Concurrently, equipment assembly and installation are also towards end. Major equipment have been assembled by MUS and expect to arrive on site by Q2FY26, thereby accelerating planned installation. Based on this progress, we remain on track to commission the facility by March 2026 or earlier. This project will fast track our entry into high growth lithium ion battery material segment crucial for India’s EV and energy storage industries. By becoming a domestic manufacturer at scale, Neogen can capture substantial market share, reduce India’s import dependence and leverage our first mover advantage with proven global technology. This strategic move not only diversifies our revenue streams and enhances our value proposition, but also positions Neogen as a critical supplier within the advanced battery supply chain contributing to further growth and profitability.
Though FY25 had its difficulties, the future of Neogen Chemicals looks promising. We are strategically positioned to capitalize on our profound expertise in multiple chemistries to fuel sustained growth. Our approach involves a dual focus, both continued emphasis on higher value specialty chemicals where we excel and significant new impetus from our developing lithium ion battery material segment. Overall, we are confident in our ability to continue delivering value to our shareholders through strategic execution, innovation and unwavering commitment to operational excellence. That concludes my opening remarks.
I would now request our CFO Mr. Gopi Krishnan Sati to share financial highlights for the period under review.
Gopikrishnan Sarathy — Chief Financial Officer
Thank you Dr. Kannani. Good evening everyone and welcome to Neogen Chemicals Q4 and FY25 earning calls. I shall now take you through the key financial highlights. Please note all the numbers are on consolidated basis and are based on year on year comparison. For FY25, revenue stood at 778 crores, higher by 13%. This was driven by strong volumes in the core business including Bulikhem. This growth came in spite of soft pricing environment as well as unavailability of our Dahed plant. During the 25 days in the month of March, Neogen Ionics reported a revenue of 12 crore.
For FY25, the revenue would have been higher if not for the fire event which led to loss of finished goods inventory. Organic revenue for the year stood at 666 crore reflecting 22% increase while inorganic revenue stood at 112 crore. Lower bromine prices on A year on year basis impacted the revenue trajectory in organic chemicals. Had they remained stable, organic revenue for FY25 would have been higher by 81 crore. Likewise, lithium prices also witnessed a decline on year on year basis. Adjusting for this decrease, inorganic revenue would have been higher by 16 crore. In FY25. EBITDA at rupees 136 crore grew by 24%.
This was driven by operating leverage from the higher volume and supported by our continued focus on cost optimization. As a result, EBITDA margin improved to 17.5% in FY25. An increase of 160 basis points over those of FY24. PAD for FY25 stood at 35 crore down by 2%. PAT was impacted by the exceptional items charged of rupees 14 crore for the damage caused to certain PPE inventory and estimated cost of incidental charges due to the fire incident. Our Dahesh facility. Let me also give you a quick summary of Q4FY25 financials. For Q4FY25 we recorded a revenue of 203 crore while EBITDA came in at rupees 36 crore.
Pact stood lower at 2 crore primarily due to the exceptional factors related to fire incident explained earlier. For FY25 we incurred a total capex of 470 crore in NeoGen Ionics out of the total of 1500 crores planned. As of FY25 our total debt stood at 566 crore while our net worth remains strong at 789 crore.
With this remark, I will now request the moderator to open the forum for Q and A. Thank you.
Questions and Answers:
operator
Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on their touchtone telephone. If you wish to withdraw yourself from from the question queue, you may press star and 2. Participants are requested to please use handsets while asking a question. Ladies and gentlemen, we will now wait for a moment while the question queue assembles. The first question is from the line of Ankur from Axis. Please go ahead.
Ankur
Thanks for the opportunity. I hope I’m audible.
H. T. Kanani
Yes.
Ankur
Yeah. Great. Okay. So first you know, few bookkeeping questions there. So if I look at the working capital side, we have seen a significant improvement there led by both inventory as well as, you know, payables being higher. Your thoughts on you know, what could be a sustainable numbers here on the overall basis as well as individually inventory as well as payables.
H. T. Kanani
So you know, as we have said when we were planning to hit full utilization in FY26 we basically were targeting 140 days of inventory. 140 to 150 days of inventory and around between 75 to 175 to 95 days of working capital of the debtors and similar number we wanted to basically target on the creditor side so that our debtors and creditors are balanced and we reach around 140150 days of total working capital cycle. Long term, beyond reaching full utilization in FY26, we would like to bring this down to around 110 to 120 days. This is on a standalone basis and in Neogen Ionics we are targeting to keep it below 90 days. So on a console basis we would be below 100 days is our long term target over the next two to three years.
Ankur
Sure. And just on the payable side, the sharp jump for the year end was more, you know, a timing issue and we should be back to that 80, 90 days average as you suggested. Right?
H. T. Kanani
That’s right. Basically our intention is that by using, you know, by basically ensure that we are debtors and creditors are more or less balanced and we’ll keep making business decisions and operational decisions to improve the inventory part.
Ankur
Sure, that’s helpful. A second question on the net block here we see a Y and Y reduction in net block and you know there is a jump in the advances as well, which to my mind is because of the insurance bit. So have we written off the entire, you know, gross log there for the. For the new asset? Just trying to understand the accounting treatment there.
H. T. Kanani
Yes. So maybe GOPI can answer this question
Gopikrishnan Sarathy
We have return of the asset to the extent it has been damaged and the balance, the utility section, the ETP section, the admin building, the NIL block, all those which have been good has been continued as is because they are in good condition. Only damage, only MPP5 and the warehouse of MPP3 and the warehouse has been written off. So the accounting treatment is simple basically whatever as per accounting standard. Since the loss has impacted both inventory as well as ppe, to the extent it is damaged, I need to recognize the loss.
And to that and to the extent we can recover, we have to recognize an insurance claim which is also elaborated in our notes to the SEBI accounts. So that’s what we had done in.
Ankur
Sure. And the construction of this plant should be done by mid of next financial year.
H. T. Kanani
No, we have given a 9 to 12 month target. So from the incident, if you look at the FHIR note that we circulated, so we are Targeting for this plant to come online by Q4 of the current financial year. So next year we expect the plan to be fully available.
Ankur
Sure. Thank you. And just lastly on the battery plant ramp up any customer approvals that we’re looking at as well as the timelines both at the domestic as well as from the global customers. If you can share your thoughts there.
H. T. Kanani
So we had visits post the fire because the customers wanted to assess. So they came and they saw that the battery plant was not affected and the operations here were continuing except for some inventory we lost both raw because we had a common inventory storage. So some raw material and finished goods inventory we had lost. But other than that the plant was running okay. So both were satisfied. And on the India electrolyte side, you know it just depends on the Indian demand ramping up. So we are just waiting for our customers demand. We are fully ready.
And the progress which we are making in Pakhargeon is also in such a way that you know, in 2026 as we have discussed in earlier calls, 4 to 5 gigafactories would be starting and we should be able to take care of all of their 2026 demand. So I think electrolyte business will depend only on the demand side. And on the salt side the customers have visited, they have seen the plan and they said we wanted to do a very detailed audit. So they have basically planned the detailed audit in the beginning of the second half of the year and the final approval they are expecting by Q3.
So sometime in Q3 where the commercial shipment should start. They also looked at the progress in the Pakhajan that the Pakhajan salt site also we are targeting by Q4. So mostly the revenue contribution from there will start coming from next year onwards. But the progress which we are making in Dahed for the salt was appreciated by the customers and they, you know, with whatever geopolitical happening they asked us to fast track the capacity increase to 2,500 tonnes there because they want to reduce the dependence on China starting end of the current finance the current calendar year.
So basically Q3 financial year onwards they would like Neogen to start shipping and Q4 is when they expect major ramp up there electrolyte completely. You know, as the Indian cell makers demand increases we are ready to take care of their demand and they have almost qualified the plant. Only few, some additional trials are needed but otherwise there is no challenge on the electrolyte side.
Ankur
Great sir, just one clarification. The ramp up on the salt side Q3 onwards is largely for the global Customers and India is already there, is that right?
H. T. Kanani
And is only global, right? Because otherwise it’s internal consumption.
Ankur
Okay. Yeah, yeah. Okay. Fair enough. I left it from my checkpoint. Yeah, I got that. Sure. Thank you. And all the best.
H. T. Kanani
Thanks.
operator
Thank you. The next question is from the line of Naushat Chaudhary from Aditya Birla mutual fund. Please go ahead.
Naushad Chaudhary
Hi, one question on this fire incident. Out of 360 crore rupees of loss, how much is for inventory?
H. T. Kanani
So we. So approximately about 160 to 180 crore would be inventory related. And the balance is the physical assets.
Naushad Chaudhary
Okay. Second, in the battery chemical business I have had last three, two, three calls of yours. But given this the last two three years lot has changed in terms of the overall economics of the business. I have, I have heard your explanation. But see in a, in a capitalism no commodity we have seen in the world can have you know, such a huge disparity for a very long period of time. For a short period period of time one country can have different price, other can have different. But over a long period of time things have to get at equilibrium.
So do you think from the point where we had started versus today the economics of the business have completely changed versus what we were expecting and we need to rethink how we should see this business.
H. T. Kanani
So thanks for the question. No, I fully agree with you that over a period of time most of the countries will have to come to a more reasonable kind of numbers which are the right number. And we have seen that if you look at a four year, five year data of China there are times where they go very low but then they go very high basically to make up for that. And then sometimes there is a period where it’s average. So that I fully agree with you. Our view today and most of the people view today is that because China set up very large capacity thinking like not only thinking of a very bullish China trend but international trend.
So therefore they kept the prices lower and if they sustain at this level we have already started seeing some of the, some of the companies, they are the smaller, weaker players to kind of start exiting the market. And we believe eventually once you know, and also the demand while it’s not growing, especially outside China at a rate which was estimated. But overall what we have seen is the demand is still growing. Energy storage is also one very strong growth area which has emerged. And overall once the demand and supply match out, we expect the prices will become more reasonable and would be higher as compared to what it is Today it is across the value chain.
If you look at the price of lithium, if you look at the price of electrolyte salts, or if you look at the price of electrolytes. Having said that, we are right now into two businesses. One is electrolytes for India and second is electrolytes solved for the international market for electrolytes in India. Whenever we look at it, we feel we are very because one, there is a necessity that this has to be local. And even if you were to think as compared to international parity at the same like you know, Apple to Apple. So let’s say we are talking 10kta to 10kta demand or 50 kilomet to 50kta or 1kta to 1kta.
We feel our price is very much close to what the international price is the landed cost. If you were to consider. So I think that’s very much in line. If you look internationally, yes, today the salt prices are very low and we believe these are not sustainable. But the premise there was early the cheapest source outside China. And that still remains true that outside China we remain one of the key cheapest source. And with whatever is happening all the international companies, because if you think of ev, if you think of within ev, the contribution of the battery within that you think of contribution of electrolyte and then you think of contribution of the salt like, you know, and that to lithium is something which is anyway a pass through.
So if you think of the manufacturing cost of the salt as a contribution, it’s very low in the overall EV or battery price but it’s very critical. So in case if tomorrow there is any disruption on supply from China, you know, definitely they need a backup source. So I think we still have that space of a backup. As I told you, even the customers who visited, their question was how can you bring the capacities more faster and not any concern. So they really have that concern. So we feel there’s a very strong demand for a non China supply and we qualify for that.
Naushad Chaudhary
See, because tomorrow your customer also have to fight with somebody for the market. And today because of the unavailability and discomfort they might be, you know, in aggression to, you know, get the new suppliers on board. But eventually, because there is no case study that the one commodity which is very not so difficult to make can, you know, trade at very differential price versus in some other countries there is, there is no, there are many commodities which cannot be transported, but it has to be have some parity. So maybe eventually when your customer starts facing those competition, one has to match that.
So apart from, you know, customers looking from for China plus one, is there any, any other advantage we Indian players have which can, you know, help us to get the required ROC from these projects?
H. T. Kanani
Sure. So one is China plus one. Second is a business model because historically the way China works is very low, very high. They don’t work on a price plus kind of model. In fact, if you ask for them a price plus model, their price also comes very close to where our prices are right on top of that. So I think these are two factors and you might have heard recently in our announcement that we have made significant progress in getting into a JV with one of the Japanese companies. So they are in this business for last 30 years.
They have plants, two plants in China. They are already making in China and you know, they have made in China and supplied for last 30 years against Chinese competition in China. So we will have some of the benefit of their 30 years of experience. Their quality is supposed to be one of the best when it comes to like you know, electrolyte salt. So we now have advantage of a better quality which leads to better performance of the final electrolyte and the battery is made out of that. On top of that you’d also have experience which will allow us to further compete in a very aggressive kind of a market.
And again, you are right that the China price today is very low. But we have faced similar situation in specialty chemicals. In pharma there are many intermediates where you know, China reduces the price, then they increase the size. And we have sustained against Chinese competition for many of our pharma molecules by having more steady, fair price and giving that option where the customer makes more money over 4 year, 5 year period once this price is basically recalibrated. So it’s a different quality, different price model and like, you know, criticality. So everything together makes us still attractive for the customer.
H. T. Kanani
Sure. I have few follow up. I’ll come back in the queue. Thank you.
operator
Thank you. The next question comes from the line of Abhijit Akela from Kotak Securities. Please go ahead.
Abhijit Akella
Yeah, good evening and thank you so much. So will it be first possible to just share with us the revenue breakdown for the full year fiscal 25 please. In terms of, you know, the bromine compounds, advanced intermediates and then the CSM business.
H. T. Kanani
Yeah, so I think the bromine compounds basically contributed to roughly around 55% of the revenue. And the advanced NTPGs and CSM together were roughly around 25% of the revenue. Then I think the inorganic was around 15% of the revenue. And the beaulieu was around. Sorry, the Beaulie was around 10% of it.
Abhijit Akella
Okay. I think it’s gone to about 105 actually. So that’s why maybe, you know. Yeah, some rounding error somewhere. And so just to clarify, the electrolytes, the Mugen Ionics business is part of organic or inorganic in the way we present it.
H. T. Kanani
12 crores, it would have been higher because majority of the salt shipments we were planning in the end of the quarter were impacted. So normal quarter would have been somewhere between 5 to 7. 5 to 8 crores additional is what we would have achieved like you know, had the fire not happen.
Abhijit Akella
Sorry, I lost your voice right at the beginning but. So Megan Ionics is part of organic or inorganic?
H. T. Kanani
Inorganic.
Abhijit Akella
Inorganic. Okay, okay. And also just to just one sort of keeping thing. The 12 crore revenue for the quarter. Sorry, for the full year. Whereas the difference between Consol and standalone revenues is only about 4 crores. So how do we reconcile that?
H. T. Kanani
So some of the raw materials, you know, till we directly got approvals, Neogen used to import and then share it like you know, transfer it to Neogen Ionics.
Abhijit Akella
Okay, okay.
H. T. Kanani
Yeah, yeah, yeah. Sorry, I have a revised numbers with me just pulled up. So 44% was bromine derivatives. Around 31% was advanced in intermediates and contract. 11% was organolithium, the inorganic lithium compounds was 11% and the battery was about 1%.
Abhijit Akella
Thank you. On the battery chemicals business, would it be last quarter you had mentioned a revenue target of somewhere around 300 to 500 crores for fiscal 26. Does that still seem feasible given the fact that it seems that the salt approvals are taking maybe a quarter or two longer than we previously thought?
H. T. Kanani
Yeah, that 300 to 500. The 300 depends on that. So it looks now more closer to 300 than 500 depending on this approval.
Abhijit Akella
Okay. And also the delay is because of the sire in any way or is it just something to do with the customer schedule?
H. T. Kanani
I think little bit of both. Because like you know, for example the customer was planning, but then the fire happened. So what happens is before their expert teams comes for validation, they sent a free team to look at the situation, then the stump. So maybe like a quarter delay because of that.
Abhijit Akella
Got it. Also for fiscal 27, is there any rough number you have in mind? I know it’s very very far away and it depends on the market, but any rough number we could work with for revenues. Battery.
H. T. Kanani
So the biggest. So again you Know internally what we are targeting is it has to be a four digit number. So we did like single digit last year, we did double digit this year. The target is in the current year we want to do three digits and the year after four digits. But like, you know, again it depends on how much electrolyte market share we get. So that is one of the criteria and how the salt volumes ramp up. The capacity will be there to do the 1000 crore plus ton of revenue. But how much 1000 plus is something that we need to decide.
Abhijit Akella
All right, fair enough. Just one last thing from my side and I’ll get back in the queue for more. One is just this investment with Morita, you know, any sort of size in terms of CapEx or something that we would have in mind and just sorry, on the margin side, while we’ve guided to the 775 to 850 crore revenue from the base business for 26 any bent on the margins because of maybe moving the production around within our plants or somewhere outside as well.
H. T. Kanani
So on the first bit the capex would be basically what will happen that the salt capacity that we are planning, especially the Pakhajan salt capacity of 3,000 metric ton, this will be basically be transferred to the joint venture, the subsidiary company. So the overall capex would remain more or less the same. We are doing the exact alignment of Morita technology with Neogen. So we already done quite a bit and based on that like you know, we have even modified some of our existing plants. But the exact overall impact would be done as we conclude the jv, let’s say as we conclude the JV and we’ll then know the exact change, whether positive or negative on the side.
But we’ll basically see what is the total capex which we will be doing. So overall the capacity plan remains the same and like the 3,000 ton which we are setting up in Pakhajan and maybe future salt capacities would be done by this subsidiary JV company is what we are targeting more or less. We feel it should be similar to what we have guided. So total capex of Neogen Ion is in the battery space will be 1500. But as we conclude our discussions and once we align completely then we’ll be able to see if there is any revision on the overall capability and the breakdown on how much will remain with nil and how much will go in the jv.
So this we will provide at a later date. In reference to your second question about like margin, see broadly speaking the margin should follow the same trajectory except as you said, you know, we’ll have to move around production or do some bit of outsourcing wherever it’s permitted. So some impact of that that should ideally be covered by the business interruption like the loss on profit policy that we have for insurance because any additional cost in fact would be. The only thing is, from an accounting point of view or from an insurance point of view, I don’t know when we will be able to recognize that because normally the loss on profit policy gets completed once the reinstatement is over because then you know exactly how much profit you lost.
Right? So most of that will happen either in Q4 or in the next financial year. We will know the exact. So any margins that we miss, we should be able to cover through that. But I don’t know on a quarter, on quarter basis how it will move. But overall if we like think of it, once you’ve taken that into account, the 18% plus kind of margin, that means, I mean 18 and a half plus minus 1.5% at a neogen level we should have that and neogen ionics will be ROC driven.
Abhijit Akella
Thank you, that’s very helpful. I’ll get back in the queue for more.
H. T. Kanani
Thank you.
operator
Thank you. Our next question is from the line of Arun Prasad with Avendis Park. Please go ahead.
Arun Prasad
Thanks for the opportunity. Good evening Dr. Hareem. My question, first question is something on this Morita jv. Can you just help us understand why we entered into a JV in the first place? Because it wasn’t there in the past. But what is the need at this point of time? What is it we are trying to do this JV which we couldn’t do it earlier and what would be the capex contribution from the JV partner and all those things, those details. Can you just simply.
H. T. Kanani
So again, you know, as I, as I explained earlier, so Morita Chemicals is a hundred year old company based in Japan and for last 30 years they were making this lips six in China and they have been making it like you know, consistently competing against China. In China they are supposed to be the best in the solid lips 6 technology even within China and we felt that as we grow to 3,000 tonnes and then when we think of from a future point of view like you know, somebody who has done this business internationally, so all the electrolyte makers of the world, in Korea, in China, in Japan have used their lipstick.
So that makes you know, the approval process for a broader customer base much faster. They also have experience of which customer has which tendency, which customer expect more Stable price and benefits. So that also is something that we have been. That is something that is going to be beneficial. Also having worked on this for almost like 30 years, their quality systems, their process system will be better. As well as the safety systems to handle AHF at such a large level. All of these experience which they are bringing. So of course, while we can make it, it is the same thing like Mitsubishi, right? We can make the electrolyte with Mitsubishi, we can do better.
Similarly, while we can do with Morita’s help, we can do better. Their technology is superior. And when we are talking of because before it was electrolyte and salt was only for our own internal consumption. And then we say, okay, we can do international business, but when we want to make salt as a focus business area, then somebody who has done it for last 30 years would be also which will add a lot of value. So almost all non China customers, the three Koreans and the two Japanese electrolyte makers, whether they are doing business in US or not, they have used their lips 6.
So, you know, we basically can work together. And also we also get some capital which is coming in a strategic form. So that also helps. And they are constantly updating the technology. So the speed at which also we can update technology and keep track of that. So we felt this was something which we were discussing for a long period of time. And we felt just as Mitsubishi, when we did it gave a lot of comfort to our customer. Same thing. We felt that this is also something which can give us superior technology. And as a joint venture partner, even more than just a licensed technology.
So I think considering all of these, this was something which we discussed for a long period of time. And because it was a joint venture, many things which we needed to align. So it took its time. But we feel it will really consolidate because now you have somebody who has the China experience, who has all the customer approvals. And with the same technology, we are making in India a non China base. So it will be one of the lowest cost outside of China is what we feel. And if the China price is same like you know where they are doing a fair pricing, we can even match with basically same as Chinese technology and prices on a fair comparison.
Arun Prasad
Okay, so. So out of 5500 tons, 2300 will be based on our own technology and 3000 will be from the Morita JV. Right.
H. T. Kanani
Sorry. The 2500 is basically some bit of salt and also additives. So this JV is specifically to electrolyte salt. So the majority of the 2,500 is going to be with the. With that’s the additive part which is what we will be doing and even the salt part there the technology. So while the plant is already partly already designed or partly already constructed and remaining under construction, we will try and Morita will also support us on improvements there whatever we can. But the new plant will be built from scratch completely as per their technology. So whatever fault we are doing, the main fault lips that will be directly exactly Morita technology or with the help of improvement suggested by the Morita technology, the additive continues to be our own technology and electrolyte 2000 metrics and in dahed his own technology.
The 30,000 ton in Pakhajan will be basically Mitsubishi technology.
Arun Prasad
Right? Dr. Just again I’m coming back to this. So I’m sure we would have been discussing this with Morita for a long period of time. But throughout the last year we were very confident of making salt with our own R and D capability and tech. So what pushed us towards this gv is it customer feedback or is it like commercials are now much better? Just wanted to understand that the decision making part of getting into this jv.
H. T. Kanani
So we were discussing with them on technology collaboration or JV almost the same period of time since we started Mitsubishi discussion. So this something which we were discussing for last two and a half, three years because we knew that this would be beneficial. So it’s the same thing like electrolyte, we can make on our own. There is no change in that, but we can do better with their experience. The same thing like electrolyte. This is something which we were discussing but you know, as against the technology license they were very clear in the beginning because they also needed a non China petition.
But you know, you understand that technology licensing is one decision and a joint venture is bigger commitment and a bigger decision. So it just took us longer for this to happen. So in the past also if you remember three months, six months or even nine months ago, we said that, you know, we have some balance equity which we need but you know, our preference is through strategic. So we always felt that these kind of JVs where we get strategic money is like, you know, beneficial for us because we get the commitment from them and then we are doing it together.
So this is not something which was decided in three or six months. It took us bit longer than Mitsubishi to get it to conclusion.
Arun Prasad
Okay, and this JD is 5050 control or 5149 how we should understand?
H. T. Kanani
No, it will be significantly controlled by Neogen. It will be much more than 50% of Neogen. So majorly neogen control. Exact percentage will share. So it will be largely be owned by neogen majority control and above understood.
Arun Prasad
And secondly on the guidance you provided doctor. 300 crores which falls under the lower band. It seems like even if we start by the end of Q3 only from salt, if you have to make 300 crores for this year utilization should be much higher. Right? It cannot be like a very faced man faced by increasing utilization probably north of 7080 percentage utilization should be there in the FY26. Then only we can get this kind of a revenue.
H. T. Kanani
So this is not from salt that is total. 300 to 500 was total. So it’s electrolyte and salt everything together.
Arun Prasad
Okay, but electrolyte we will not. We are not looking to export during this year.
H. T. Kanani
No electrolyte. So 300 to 500 is the total guidance we had given for neogen Ionics. Electrolyte will be from India’s requirements. As you know, one gigafactory is now getting streamlined. Second one is likely to start by end of the year and another at least one more will start before like in the Q4 financial year. So we are expecting at least three customers like you know, requiring electrolytes by beforehand. So the demand of these three as well as salt in the second half together should be able to do. We had initially guided 300 to 500 crore.
Now it looks a little bit more closer to around 300 crores.
Arun Prasad
So any rough breakup in 300 between salt and electrolyte revenue.
H. T. Kanani
I think. Let me get back to you on that. But I think approximately we had targeted around 150 to 200 crores of electrolyte and 150 to 200 crores of salt.
Arun Prasad
Of the salt?
H. T. Kanani
Yeah.
Arun Prasad
And the electrolyte part depends upon the local manufacturer’s readiness.
H. T. Kanani
That’s right.
Arun Prasad
Understood.
H. T. Kanani
These will be more in the second half as compared to the first half.
Arun Prasad
Understood, understood. On the export side we spoke about the customers who needs to do the field audit by Q2. This we are talking about couple of customers or multiple customers. How should we look at it and nature of these customers? Also can you help us understand are they battery manufacturers or OEMs? If it is battery manufacturers, do they need further approval from the OEMs? These kind of details please help us understand.
H. T. Kanani
So whatever we are doing at least in the US market like you know it’s battery manufacturer plus oem. So they are basically they are both aligned on this. So it will be actually electrolyte maker, battery maker and oem.
Arun Prasad
Okay, so this. Okay, so basically battery manufacturer is. Is what? Who will be taking the final shot of, you know, giving an approval?
H. T. Kanani
Sorry, I’m not able to.
Arun Prasad
No, whatever the approval given by the battery manufacturer, that stands final irrespective of what the oem.
H. T. Kanani
No, no, I’m just saying everybody’s aligned with this. That’s the only thing I’m saying.
Arun Prasad
Okay, okay. But our customer is for battery manufacturer, not the oem.
H. T. Kanani
So anyway, like, I would not like to specify more here. We would of course be selling it to the electrolyte makers. But like, you know, we would have like several, all like, you know, the electrolyte maker, the battery maker, oem, everybody is aligned.
Arun Prasad
And this field audit is the final step in the overall approval process. Or is there anything else apart from this? That’s it.
H. T. Kanani
Basically post field audit, the actual in battery manufacturing trials would start.
Arun Prasad
Okay, that, that is approximately how long.
H. T. Kanani
Because they will do the field audit. Then there will be a large scale like you know, trial in actually making the batteries out of that and any additional trials that people want, the customers would like to.
Nishid Solanki
Okay, so all this can be completed.
operator
We do have participants awaiting their turn in the queue. Request you to please rejoin the queue for follow ups.
Arun Prasad
Sure. Thank you.
H. T. Kanani
The target is to complete it in Q3 just to answer your question.
operator
Thank you. Ladies and gentlemen. In order that the management is able to address questions from all participants in the queue, you are requested to please restrict yourselves to two questions from per participant. You may rejoin the queue for follow up questions. We have the next question from the line of Archit from NuVama Institutional Equities. Please go ahead.
Archit Joshi
Hi, good evening sir and thanks for the opportunity, sir. I have a few on Morita and the GV that we are working on right now. So the first one is when the MUIS DLAT happened. I think we were proposing that there will be a mix, or rather a good mix of some recipes that we will get from NUIS and which will also be supported by our technical expertise in making the electrolytes. And now it seems as we have indicated, that Morita will be taking care of the salts bit, Nuis will be taking care of the electrolyte bit.
And we obviously will be more like a manufacturer or executor of all this at the end of the day. So it seems like a good trinity in the making of three companies working together. Has this all been worked out well? Because the solids that you probably would have made earlier would have had some discussions with NUIS with regards to what grades and ease and purities that you will be providing. And now with Morita coming into the picture, does that change anything materially? Anything that you might want to comment on how this all three of us should work together.
H. T. Kanani
So you know, basically Neogen is like you said, right? Archit before that Neogen can make the salt. We demonstrated our ability to do that. You send samples to customers who approved them. You made electrolytes for last now two and a half years. And none of this is from the Mitsubishi plant. But like you know, we are already. But we are using Mitsubishi because we feel we can learn from their three decades of experience. And just like Mitsubishi like started one of the founders of making electrolyte in Japan. So similarly Morita is one of the founder person in the LIPS six or electrolyte salt.
So we are very happy that you know, both of these guys have trusted and like you know, while it’s not public, but like you know, they’re both from Japan, they work together in the past. So the customers are even and even our existing customers also they have even now more confidence just as before we were having but with Mitsubishi gave the added confidence to the customer. So now Morita coming on board gives more confidence to especially future customers. So we having Morita. One of the advantage of having Morita is because they have used Morita Quality Lips 6 for especially the Japanese and the Korean electrolyte makers.
They have used it for decades. So you know, they bring that confidence also along. And not only that very deep understanding of also China market having played in China for last 30 years and competed in China against Chinese for last 20, 30 years.
Archit Joshi
Sure. Sir, the pricing bit that we were discussing earlier, I think I was reading somewhere that electrolyte prices now ranging somewhere between nine and a half ten dollars. And I think from what I heard from you before, Morita does have this experience of manufacturing and selling in China, which I’m presuming that will be are more cost competitive and that’s what kind of brings them on our table with regards to their manufacturing expertise. But would that still be low enough in terms of cost of manufacturing or production? Or at this price point of dollar realization when you know, electrolyte prices have fallen so much.
We would additionally need some government support going ahead now that we already have plis and all these things in place would be ancillary companies like us who are into battery chemicals or battery materials at these price points that we were discussing earlier through an earlier participant because the business dynamics have changed and stuff like that. Do we think that Morita’s technical experience would in itself bring so much capabilities to reduce the cost or you think that more government intervention is required?
H. T. Kanani
So you know, first of all what we wanted to. First of all you asked about, you know, whether Morita can help us reduce the cost. I mean look, we use a better technology and the better technology that we have, whatever said and done, you know, when you think of manufacturing costs in China and manufacturing cost in India, that is always going to be different. And like you know, again our stated goal and you know Morita is aligned with that goal that we should basically target 20% ROCE kind of on the business. So whatever benefits which we can bring will pass on to the customer.
But again we don’t want to commit to a specific price point. But yeah, with their 30 years of experience that will definitely help. Second point is, you know in some of our business we have basically like expected or planned based on government support. So like we’re not basically banking on any government support or subject to a government support. The business model is possible or not. As you said very clearly that you know in electrolyte we have to supply locally. We will supply one of the lowest cost available in India. Good quality, international quality electrolyte. And we have seen positive customer feedback on our.
Not only the quality of electrolyte, the transparency and the business model. Same goes like electrolyte thought is mostly for the international market. What we are going to do with Morita as well as our own internal consumption. So I think with having Morita with 30 years of experience gives us a lot of confidence. And as I explained earlier to Arun’s answer that like, you know, we are not waiting. This is not something which has triggered in last six months, nine months. It’s something which we are discussing for last two, two and a half years. But it just took longer time because a joint venture is a much bigger commitment as compared to a technology license.
So it just took us that much longer for everything to fall.
Archit Joshi
Sure sir, that answers a lot. Thank you. Thank you and all the best.
H. T. Kanani
Thank you.
operator
Thank you. The next question is from the line of Rohit Nagraj from BNK Securities. Please go ahead.
Rohit Nagraj
Thanks for the opportunity. Again, apologies for acting on the same issue. So first in terms of the 400 MTP capacity which we had worked on in terms of electrolyte salt. Then the next about 2000 tons of DPA capacity and now the Morita technology which will again give us Some capacity from Lips 6. All these three products are different. And how is the User dynamics for all these three products.
H. T. Kanani
Okay, so see there are. So what we basically have was electrolyte salts and additives and some intermediates of electrolyte salt. And we were totally planning 2500 tons in Dahed which was a mix of additive and electrolyte salt and the intermediate and we were planning 3,000 metric ton in our Pakhajayan facility which is for only electrolyte salt. So basically the additives and the electrolyte salts, they are basically very similar. They are lithium compounds. You know we have to purify lithium. Then we have to do make some basic simple lithium salt like lithium chloride. Lithium chloride. And then from lithium chloride or chloride or a very high purity lithium carbonate, then we basically go and we make the electrolyte salt or electrolyte additive.
The difference between additive and electrolyte salt is just how much it gets you. So usually the electrolyte salt is used between 10 to 15% in a formulation. The additive is normally used between 1% to 3%. So that’s the only difference. But otherwise your end customers are the same and the dynamics remain the same. The pricing for the additive is a little bit more higher and slightly lesser number of people make the additive as compared to the electrolyte salt. So these are the different Dynamics of the two.
Rohit Nagraj
Okay, so the 2500 metricum salt and additive would be different than LIPF 6 which will be with Melta.
H. T. Kanani
No, no 6 is also included in the 2500.
Rohit Nagraj
Okay.
H. T. Kanani
So we started making salt and additive both. And salt, as our own electrolyte plant comes up, we will need more capacity. So salt, we are increasing capacity in Pakhajan because the international demand of this is much, much higher. So you know, if we are doing in Pakhajan we can quickly ramp up in case of additive. We are already setting up in Dahish. So right now we have not announced any capacity increase of additive in Daheb. If we feel that demand increases, the volume increases to the level where we can’t support in the haze and we need to go to Pakhajan then we have environment approvals even in Pakhajan to make the additive also.
Rohit Nagraj
Right. Got this second question on the numbers. So for FY26 our legacy business will have about say 800 crores of revenues and additional 300 from the battery chemicals. So effectively about 1, 100 plus minus Jarita, 1100 plus minus kind of crores. What could be the EBITDA margin that we are looking? And slightly a similar question for FY27 given that the Affected plant will be up and running. We will obtain close to maybe 10001100 from the Legacy business. And you said about thousand crores which is aspirational number from the battery chemicals. So effectively about 2000 crores for revenues for FY27.
So in both the years what is the kind of margins that we are looking at?
H. T. Kanani
Yeah, so for FY27 I I can give you clarity faster. So as you said there will be a full utilization of our new facility because it will be fully available and demand wise we are already seeing a demand like around thousand 1100 crores kind of a demand will be there. So FY27 we will target somewhere around 11. This is 10001100 crores kind of a revenue. And at a full utilization level those EBITDA should be 18.5 plus or minus 1% is what we target in our base business for the thousand crore revenue. For thousand crore plus when I say, you know it’s not the number, I’m just saying it will be something more than thousand.
Too early for me to say because we need to understand how the electrolyte demand in India basically pans out. And that will be clear as we get more closer towards the end of the current year. But the exact EBITDA percentage will depend upon many factors like utilization levels. What are the lithium prices? So there we have given a guidance of a full utilization at 2000. Sorry, at full utilization the revenue of 2502900 at a 20% rot depending on the price of lithium. You know the EBITDA ranges from on the lower side, 15 16% on the higher side going upwards of 20% depending on.
But for our 2500-2900 kind of a revenue projection because at a normal DPM price the EBITDA percentage margins were in 16 to 18% kind of range. So that’s on FY27, on FY26 as I explained earlier, the 850 crore kind of revenue like 775 to 850 crore. The revised revenue projection due to Fire, what we have given normal EBITDA margin would have been 17, 18%. But like I said because of impact of fire and we have to do operations at different plants, some bit outsourcing. So combination of that there will be some impact on the margin that should partly get covered by our loss on profit.
But whether that will be applied in the current year or that will be applied in the next year, depending on the insurance system and accounting policies, that’s something which is not very Clear for me.
Rohit Nagraj
Fair enough. Just one question from the modeling perspective in terms of the capitalization of assets or investments during FY26 what are we looking at? So there will be one capitalization which will happen because of the plant reconstruction and in between the projects which are likely to be getting commissioned from the salt side. So on a broader basis how much amount of assets will be capitalized just to get a pesticide? What could be the depreciation amount?
H. T. Kanani
Yeah, so totally we are expecting you know the whole all the lithium capex is likely to be completed by March 26. So that’s around 1500 crore will be fully capital will be capitalized like you know and on the, on the plant side we are expecting whatever is the replacement value of this. So like the loss was around 170 crore. So somewhere around 200, 225 crore as a replacement value is where you would. Have a full capitalization.
Rohit Nagraj
And what could be the mode of funding for this entire CapEx?
H. T. Kanani
So we are at a very advanced stage for completing the insurance policy. So the funding for the and our our insurance is on a reinstatement basis. So any additional capex everything. So that will be taken care from Neogen from the insurance outflow, any temporary funding needed. Our banks have suggested that they can give us some temporary loan but moving it will be from insurance. And on the battery side of it you know this is already tied that the equity we had raised as well as the term bank term loans. So long term loans which we have from both our phase one and phase two and on top of that now we will also have the JV partnership so some money coming in also from the JV partnership contributions.
All these will be the mode of funding for the battery business.
Rohit Nagraj
So just sorry last bit in terms of FY26 exit what is the kind of debt that we are looking at? And I understand that probably for the MPP3 there would not be any debt because whatever insurance claim comes in probably get popped off with the investment that we are making. But excluding that on the battery chemicals and plus the working capital front what is the exit rate that we are looking at?
H. T. Kanani
So you know we have seen at Neogen Chemicals you know you would have basically similar debt levels. At present that’s roughly around. Yeah, no total debt will be around 450, 400, 500 crores including working capital. Yeah around 450 odd crores at the Neogen level and on at the battery Neogen Aramis level roughly around 70% is funded by the bank. So totally from 1500 70% of that. So somewhere around 1100 to 1200 crores would be funded by debt.
Rohit Nagraj
Sure. That’s all from my side. Thanks a lot for answering all the questions and all the best.
H. T. Kanani
Thank you so much.
operator
Thank you. Ladies and gentlemen, you are requested to please restrict yourselves to two questions from per participant. We have the next question from the line of Nilesh Kuge from HDFC Securities. Please go ahead.
Nilesh Ghuge
Yeah. Good evening team. Just one bit of question on this capex as you mentioned that around 1100-1200. Crore will be funded through debt. So for FY25 you already incur capex. Of about 470 crore on your greenfield facilities. So in this 470 crore how much. Was the debt part?
H. T. Kanani
Gopi, do you have the number?
Gopikrishnan Sarathy
Yeah. Basically the debt is in two. Parts we have already. One is a CCD which is my. Equity contribution which is already gone and. I have around another 150 crore. Around 150 crores from dotted BE32. Yeah. So I think basically 150 crores is from the deck. Yeah.
H. T. Kanani
Yeah.
Nilesh Ghuge
Okay thanks. Thanks a lot.
operator
Nilesh, are you done with your questions?
Nilesh Ghuge
Yeah I’m done.
operator
All right, thank you. Our next question is from the line of Jason Sones with IDBI Capital. Please go ahead.
Jason Soans
Yes sir. Thanks for taking my question. So just wanted to understand, I mean of course earlier you have alluded to, I mean we have a really, really good improvement in the working capital so which is reduced quite dramatically now I understand there must be definitely a big impact of the fire in it as well because you said you know, the inventory etc gets written off as well. So I just wanted to understand if you’ve done some analysis, you know, excluding the fire, what, you know, what measures have been taken, something with the supplier or something like that to improve our working capital.
Just excluding this fire event because that will be a one off thing and you know, just would want to know what is the sustainable impact of this.
H. T. Kanani
Yeah, so you know excluding fhir as we have seen, you know we’ve done several things to basically work on our debtor cycle as well as our credit cycle. So that has already happened and we were also more mindful this year because as I told you previous the year before we were just ramping up our production and in between we had to change from working from one set of customer to another set. When agro kind of slowed down we had to move to pharma and other industries. So like you know this was some changeover that we had to do so Other than that, and even after you take the fire impact, you can see that overall there is an improvement.
I think largely still, I mean we basically maintain the stock levels at a similar kind of level and even after impacting for fires in terms of number of days etc. And our debtors and creditors both improved. So together we were able to do better. I think as I explained in one of the earlier question mark that long term we want to have a policy in place where we can at least manage debtors and creditors so that they can balance each other and by securing better credit terms and you know, funding, funding product and like inventory for the stock and the inventory business is working so that we have more, larger molecules, more visibility.
So over a period of time we can improve that.
Jason Soans
Sure sir, thanks for that. And I just wanted to, I mean if you could, I mean you do speak about a 20% ROC in your battery business, but are you working with some kind of steady state realizations for the soils and electrolytes? I mean if considering the lithium prices, the low lithium prices just would understand if you’re working with some steady state realizations for both the, both the products.
H. T. Kanani
So what we have done is, you know, so we have done for last 40 years business with Cermax to make lithium bromide and with some other customers for the lithium salt which are for the non battery market. So in this, you know, what we have seen beneficial both from a customer point of view and our point of view and to sustain a long term relationship is to have lithium as a price rule. So almost all non China customers really appreciate that because they know we are not making money on lithium price fluctuations. And that is something which is very transparent and we are mostly working on what is Neogen’s efficiency on conversion.
So this is the way we have done it and the solid business that whatever agreements we have signed where we have basically 20% ROC of course subject to Neogen hitting the manufacturing cost and the operating cost targets. You know, the consumptions have to be correct, the yields have to be correct. But if we get the whatever we have targeted correct then we can basically earn the right to get a 20% rot on the salt business electrolyte. So far we have not yet signed contracts but majority of the pricing discussions with the customers are on a very transparent basis that look, as we increase capacity we keep reducing the per metric ton margin because my capex per metric ton is going to reduce.
So I think this is really appreciated. By the customer and is one of the differential factors when we work with Both local as well as international customers. So there is no number which I can predict on the like, you know, on the realization because lithium price fluctuation affects significantly especially the salt electrolyte, the impact is a bit lower because you know the lithium content per kg consumption there is much lower. But in today’s scenario all the other raw materials in electrolyte also are depressed prices. So we perform that to our customers because you know, we don’t want to play. We don’t want to play on price differential in one market versus other on rm.
We want to basically margin through our technology, through the processes and through controlling cost in the right way.
Jason Soans
So totally both the businesses will basically targeting a ROC of 20%.
H. T. Kanani
Correct. Yes, that’s the target in voice. We have been able to already conclude while they are not like volume is not 100% confirmed kind of contract but like you know, whatever price understandings that we have right pricing mechanisms that we’ve concluded, they basically ensure the 20% ROP for the electrolytes. We still because the customers as they get closer to their ramp up. But in principle that concept is accepted by the customer that everything else has to be priced. And we need to discuss mostly on Neogen contribution part.
Jason Soans
And so just what is understand is the gross block has reduced and the gross profit is that only because of the fire or is there any other reason? That’s. That’s the reason.
H. T. Kanani
That’s the only.
Jason Soans
That’s the only reason. And you mentioned that Neogen INX has a top line of 112 crores or 120 million. But when you do a simple minus to minus the subsidiary revenue is around 40 million. So what explains the difference?
H. T. Kanani
I explained to earlier call that you know there were some raw materials which were needed which were initially bought by Neogen because Neogen has a to get credit as a lithium and then they were transferring it to Neogen Ionic. So this you will see in a three month, six month, nine months also. Right. But some raw material. But now as Neogen Ionic stands on its own, the business becomes regular. Then you know, the customer, the suppliers will give directly credit to them. So there were some inter company transfers which is what explains the 8 crores.
Jason Soans
Okay. And so just lastly wanted to understand you. You mentioned 300 crores for battery chemicals in 26 and thousand crores. Is that more the compliance? Is that a sort of a guidance or you just. I mean it’s just. Are you guiding for a 300 crore battery chemicals in a 27. In 27,000 crores? For battery chemicals.
H. T. Kanani
Yes. So we have already guided for 300 to 500 crore guidance on as we discussed in our call, we will still look at a 500 crore number. But yeah, based on the discussions we had on a call it looks more closer to around 300 crores is what we are saying. And across the first half we’ll be able to give you a better. The second is just the number, it will be more than thousand. But the guidance more specifically as a guidance will let you know maybe like you know, as we get more closer once we have clarity on India battery as well as once the supply starts to our customers.
Jason Soans
Okay sir, thank you so much for answering all my questions. Thank you.
operator
Thank you. That was our last question. Ladies and gentlemen, I would now like to hand the conference over to the management for closing comments.
H. T. Kanani
Thank you all for participating today. We hope we were able to answer your question. Our investor relations team is available for any further questions you may have. We appreciate your time and look forward to speaking with you again next quarter. Thank you again.
operator
Thank you on behalf of Neogen Chemicals Ltd. That concludes this conference. Thank you all for joining us. You may now disconnect your lines.