Clean Science and Technology (CLEAN) Q2 24/25 earnings summary

Executive summary

• Q2 FY25 delivered strong year-over-year revenue growth, driven by higher volumes and robust EBITDA margins, with a healthy cash position and diversified product and geographic mix.

• The Board approved unaudited standalone and consolidated financial results for the quarter and half year ended September 30, 2024, with no material misstatements identified.

• Continued investments in capacity expansion, new product launches, and commercialization, including pharma intermediates.

Financial highlights

• Q2 FY25 consolidated revenue was ₹2,381.33 million, up from ₹1,811.15 million in Q2 FY24; standalone revenue rose 26% year-over-year to ₹228.1 crore.

• Q2 FY25 consolidated profit was ₹587.46 million, with standalone PAT up 30% to ₹67.4 crore; EBITDA margin at 42.1%.

• Gross margin saw a 250 bps sequential dip due to higher raw material costs and product mix changes.

• Tax rate increase this quarter was a one-off, linked to changes in capital gains tax.

Outlook and guidance

• Profitability is expected to improve as subsidiary operations scale up, with commercialization of a new pharma intermediate in Q3 FY25.

• Targeting 2,000 tons of HALS sales in FY25, with further ramp-up as new products gain approvals.

• Revenue potential from new performance chemical and water treatment plants estimated at INR 350 crore and INR 320 crore, respectively, at peak.

• Company aims to reach 2.5x current revenues in three years, driven by ongoing and planned CapEx.