Clean Science & Technology Limited, a leading specialty chemicals manufacturer, has announced that its co-promoter group is considering selling a minority stake in the company. This news comes as the company reports robust financial results for the first quarter.

Potential Stake Sale

The company disclosed that Ashok Boob, Krishnakumar Boob, and Parth Maheshwari, along with their Promoter Group members, who collectively hold 55.18% of the total paid-up share capital, are evaluating the possibility of divesting a minority stake. This move is intended to support family estate planning and provide financial liquidity through partial monetization of their investment.

Importantly, Siddhartha Sikchi, another key promoter, along with his Promoter Group members holding 19.79% of the shares, has committed to maintaining their current shareholding. The promoters have emphasized that they intend to retain control and continue as majority shareholders, with their aggregate shareholding remaining above 50% post-transaction.

Q1 Financial Highlights

Alongside this strategic development, Clean Science & Technology has reported strong financial performance for Q1:

• Consolidated revenue from operations stood at ₹2,428.69 crore, showing an 8.4% year-on-year growth.
• EBITDA margin improved significantly to 46.4%, the highest since the company's listing.
• Profit after tax (PAT) increased by 6.3% year-on-year to ₹700.63 crore.
• Earnings per share (EPS) for the quarter was ₹6.59, up from ₹6.21 in the same quarter last year.

Financial Performance Table

Operational Highlights

The company attributed its strong performance to:

• Favorable product mix leading to improved margins
• Continued sales momentum in established top 4 products
• Steady performance of the HALS (Hindered Amine Light Stabilizers) series

Clean Science & Technology also reported progress on its expansion plans, with water trials for a new performance chemical expected to commence in August, and capex for another performance chemical on track.

The potential stake sale by the co-promoter group, coupled with the company's strong financial performance, signals an interesting phase for Clean Science & Technology. As the company continues to grow and expand its product portfolio, investors will be keenly watching how these developments unfold in the coming months.

Management commentary and further details about the potential stake sale are awaited, which could provide more clarity on the company's future strategic direction and growth plans.

Clean Science & Technology Limited, a leading manufacturer of specialty chemicals, has announced its financial results for the first quarter, showcasing improved profitability and steady revenue.

Financial Highlights

• Revenue: The company reported a revenue of ₹2,199.06 crore, remaining relatively stable compared to ₹2,173.14 crore in the same quarter last year.
• EBITDA: Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) increased to ₹1,000.00 crore, up from ₹978.00 crore year-over-year.
• EBITDA Margin: The EBITDA margin improved to 45.77% from 45.00% in the corresponding quarter of the previous year.
• Net Profit: Clean Science & Technology's net profit rose to ₹765.74 crore, compared to ₹721.58 crore in Q1 of the previous fiscal year.

Operational Performance

The company's performance in Q1 reflects its ability to maintain profitability despite challenging market conditions. The improvement in EBITDA and net profit margins indicates effective cost management and operational efficiency.

Management Commentary

While specific management comments were not provided, the financial results suggest that Clean Science & Technology's focus on high-value specialty chemicals and operational excellence continues to yield positive results.

Future Outlook

Clean Science & Technology Limited's board has approved the following:

• The 22nd Annual General Meeting (AGM) will be held on Thursday, September 11, through Video Conferencing / Other Audio-Visual Means.
• A final dividend will be paid to eligible shareholders on Friday, September 26.
• The Register of Members and Share Transfer Books will remain closed from September 5 to September 11, for the purpose of the AGM and final dividend.

These decisions indicate the company's commitment to shareholder returns and corporate governance practices.

Consolidated Performance

On a consolidated basis, Clean Science & Technology reported:

The company continues to focus on its core business of manufacturing organic chemicals, which constitutes its primary segment.

Clean Science & Technology Limited's Q1 results demonstrate the company's resilience and ability to enhance profitability in a competitive market environment. With a strong start to the fiscal year, the company appears well-positioned for continued growth and value creation for its shareholders.