Clean Science and Technology (CLEAN) Q4 23/24 earnings summary

Executive summary

• FY24 sales and profit declined amid global destocking and softer consumption; disciplined cost control kept EBITDA margin above 40%.

• Commercial production began at Clean Fino Chem in March 2024, adding India’s largest HALS facility with 10,500 MT annual capacity and broadening the product base.

• Growth priorities include new product development, capacity expansion, R&D and export-market development, supported by a debt-free standalone balance sheet.

Financial highlights

• Consolidated revenue from operations was ₹7,914.85 million vs ₹9,357.99 million in FY23; consolidated PAT was ₹2,440.26 million vs ₹2,951.76 million, down 17% YoY.

• Standalone revenue from operations was ₹7,894.39 million vs ₹9,357.99 million; PAT was ₹2,476.88 million vs ₹3,035.10 million.

• Standalone EBITDA was ₹3,372 million vs ₹4,026 million; EBITDA margin was 43.4% vs 43.5%.

• Consolidated basic EPS was ₹22.97 vs ₹27.79; diluted EPS was ₹22.96 vs ₹27.78.

• Exports contributed 64% of revenue; consolidated export revenue was ₹4,971.59 million vs ₹6,713.17 million, while domestic revenue was ₹2,943.26 million vs ₹2,644.82 million.

Outlook and guidance

• R&D pipeline targets more than 10 new molecules at a time across pharmaceutical, food, paint, antioxidant and stabiliser applications.

• New HALS products and blends, downstream intermediates, and further pharma and agrochemical products are planned; the pilot facility is intended to shorten testing and commercialisation timelines.

• The HALS market is estimated at US$1 billion, with a cited 10% CAGR; the 10,500 MT-per-year facility positions new output for domestic and export markets.

• Five-year ESG goals include 15% reductions in specific GHG emissions, water use and energy use from FY23 levels, plus 25% higher renewable-electricity share and 50,000 trees planted.