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

Executive summary

• Q2 FY25 saw steady sequential revenues and strong year-over-year growth, with sales up 26% and PAT up 30%, driven primarily by higher volumes across segments.

• H1 FY2025 saw robust profitability growth and a healthy cash position, supported by diversified product and geographic mix.

• Unaudited standalone and consolidated financial results for the quarter and half year ended September 30, 2024, were approved by the Board and reviewed by statutory auditors, with no material misstatements identified.

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

Financial highlights

• Q2 FY2025 standalone revenue rose 26% year-over-year to ₹228.1 crore; PAT up 30% to ₹67.4 crore.

• Consolidated revenue from operations for Q2 FY25 was ₹2,381.33 million, up from ₹1,811.15 million in Q2 FY24; half-year revenue was ₹4,621.45 million, up from ₹3,692.29 million year-over-year.

• EBITDA for the quarter was INR 95 crores, with a robust margin of 42%.

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

• Power and fuel costs increased to 9.6% of sales, impacted by higher production, monsoon, and coal prices.

Outlook and guidance

• Consolidated profitability is expected to improve as subsidiary operations scale up.

• Launch of pharma intermediate in Q3 and further ramp-up in HALS series anticipated.

• Revenue growth target is 2.5x current levels over the next three years, driven by ongoing and planned CapEx.

• EBITDA margin guidance: parent company 40%+, HALS subsidiary 25% at optimal utilization.