Clean Science and Technology (CLEAN) Q4 22/23 earnings summary

Executive summary

• FY23 delivered record revenue and profitability despite global headwinds; growth reflected domestic and export demand, customer additions, new-product ramp-up and cost discipline.

• Revenue reached ₹9,358 million, up 36.6% YoY; exports contributed 72%, while newly launched products contributed 9% of revenue versus 4% in FY22.

Financial highlights

• Standalone revenue from operations was ₹9,357.99 million versus ₹6,848.86 million; standalone PAT rose 33% to ₹3,035.10 million.

• Consolidated PBT was ₹3,956.35 million and PAT ₹2,951.76 million, versus ₹3,047.96 million and ₹2,284.95 million in FY22.

• Standalone EBITDA was ₹4,026 million, with a 43.5% margin versus 44.3%; EBIT was ₹3,668 million and PBT ₹4,054 million.

• Consolidated operating cash flow was ₹2,793.62 million versus ₹1,272.46 million; investing outflow was ₹2,698.24 million, including ₹1,834.05 million for property, plant and equipment and related assets.

Outlook and guidance

• Focus remains on building a broader specialty-chemical portfolio in stabilisers and antioxidants, improving R&D, capacity, yields and cost efficiencies, and expanding global customer acceptance.

• Additional HALS and other product lines at Clean Fino-Chem are planned for phased commercialisation over the next two years, starting December 2023; construction was on schedule and environmental clearance received.

• HALS targets domestic import substitution initially; the cited global market is estimated at US$1 billion with 10% CAGR.