Neogen Chemicals reports flat performance in Q2, PAT grows by 26.94%

Nov 14 2024 09:51 AM IST
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Neogen Chemicals, a midcap company in the chemical industry, has reported a flat performance in the second quarter of fiscal year 2024-25. While the company's PAT has shown a positive growth of 26.94% year on year, there are concerns about increased interest costs and potential strain on finances due to increased borrowings. MarketsMojo has advised investors to hold their positions in the company's stock.

Neogen Chemicals, a midcap company in the chemical industry, has recently announced its financial results for the quarter ending September 2024. The company's stock has been given a 'Hold' call by MarketsMOJO.

According to the financial report, Neogen Chemicals has seen a flat performance in the second quarter of the fiscal year 2024-25. The company's score has fallen from 1 to 0 in the last three months. However, there are some positive aspects to the company's financials.

One of the highlights is the Profit After Tax (PAT) for the half-yearly period, which has grown by 26.94% year on year to Rs 22.43 crore. The near-term trend for PAT is also positive. However, there are some concerns as well.

The company's interest cost has increased by 29.84% quarter on quarter to Rs 12.75 crore. This signifies increased borrowings by the company. Moreover, this is the highest interest cost in the last five quarters, indicating a potential strain on the company's finances.

Overall, Neogen Chemicals has shown a mixed performance in the recent quarter. Investors are advised to hold their positions in the company's stock, as suggested by MarketsMOJO.
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