Clean Science and Technology (CLEAN) Q4 21/22 earnings summary

Executive summary

• FY22 revenue from operations rose 33.66% YoY to ₹6,848.86m; PAT increased 15.24% to ₹2,286.06m, both record highs.

• Export demand, higher customer share, improved realizations and new products supported growth; elevated raw-material, fuel and logistics costs pressured margins.

• Growth strategy centers on catalytic process innovation, capacity additions, new products and sustainable manufacturing; operations remained debt-free with strong return ratios.

Financial highlights

• Standalone total income was ₹7,148.25m vs ₹5,380.50m; PBT ₹3,048.99m vs ₹2,672.91m; PAT ₹2,286.06m vs ₹1,983.75m.

• EBITDA increased 16% YoY to ₹3,000m, while EBITDA margin fell to 44.3% from 51.1%; management cited sharply higher input, fuel and logistics costs.

• EPS was ₹21.52 basic and diluted vs ₹18.68; consolidated EPS was ₹21.51 vs ₹18.68.

• Operating cash flow was ₹1,272.54m vs ₹1,930.91m; capex cash outflow was ₹1,296.55m and cash equivalents ended at ₹127.77m.

Outlook and guidance

• Planned FY23 capacity increases of ~50% each for MEHQ, Guaiacol and PBQ; BHA capacity had already risen 50% in H2 FY22 and Anisole capacity nearly doubled.

• Two HALS products were expected to commercialize in H2 FY23; the estimated global HALS market was US$1bn, growing at 10% CAGR.

• Growth outlook is supported by new products, existing-product capacity expansion, entry into HALS and a continuing R&D pipeline.