Clean Science and Technology (CLEAN) Q1 24/25 earnings summary

Executive summary

• Q1 FY25 saw steady sequential revenues and a 16% year-over-year sales increase, primarily volume-led, with strong EBITDA margins maintained and robust export focus (64% of revenues from exports).

• PAT grew 23% year-over-year, though consolidated profitability was impacted by higher costs at the new subsidiary, CFCL.

• Commercialized three new HALS products in July 2024 and advanced capex for new performance segment products.

• Board approved unaudited standalone and consolidated financial results for Q1 FY25, with both sets of results reviewed and unmodified by statutory auditors.

• Key management changes include resignation and appointment of Company Secretary and Compliance Officer, and board-level appointments and continuations.

Financial highlights

• Q1 FY25 consolidated revenue rose 16% year-over-year to ₹224 crore; standalone revenue was Rs. 2,173.14 million, up from Rs. 1,881.14 million in Q1 FY24.

• EBITDA grew 28% year-over-year to ₹94.6 crore, with margin expansion to 45.5%.

• PAT increased 23% year-over-year to ₹65.9 crore, with PAT margin at 29.8%.

• Gross margin remained steady; cost absorption improved due to higher volumes.

• Basic and diluted EPS (consolidated) for Q1 FY25 were Rs. 6.21 and Rs. 6.20, respectively.

Outlook and guidance

• Targeting 150–200 tons/month HALS sales in the coming quarters, with 2,000 tons for FY25 and 2,500–3,000 tons for FY26.

• No price increases expected in the next 2–3 quarters; growth to remain volume-led.

• Capacity utilization expected to ramp up, improving margins as scale increases.

• Pharma intermediate expected to commercialize in Q3 FY25.

• Ongoing capex and new product launches to drive future growth, with focus on high-value specialty chemicals.