Neogen Chemical, a leading Bromine and Lithium-based speciality chemicals company, has recorded 20 per cent increase in June quarter net profit at ₹6 crore against ₹5 crore logged in the same period last year despite incurring an additional expense of ₹9 crore to mitigate challenges posed by Covid.
Total income increased to ₹77 crore (₹64 crore) on good demand for products from pharmaceuticals and agro-industry.
The company restarted manufacturing operations gradually at all the three plants in April. To continue and maintain the operations during lock down, various changes in employee transport, additional incentives for employees and contract workers, insurance benefits were provided by the company.
It incurred an expense of ₹6 lakh in employee benefits expense and ₹31 lakh in other costs. The company was able to complete processing of semi-finished goods which were to be sold in March but got postponed to June quarter due to Covid.
Haridas Kanani, Chairman and Managing Director, Neogen Chemicals said the hard work of employees ensured continuous supply of key raw materials and intermediates for essential medicines and agrochemicals in pharma and agro-industry during these difficult times.
The company did not avail the moratorium on loan announced by the RBI post-Covid. It has resumed organic chemical expansion work at Dahej SEZ and expects to speed up the construction work to complete the project as planned in Q4 FY’21.