Clean Science & Technology , a leading manufacturer of specialty chemicals, has reported its Q1 results and revised its growth projections, leading to a significant impact on its stock price.

Q1 Financial Performance

The company's Q1 financial results show mixed performance:

Revised Growth Projections

Clean Science & Technology has adjusted its full-year EBITDA growth expectations from the previously anticipated 18-20% to a more conservative range of 15-18%. This revision reflects both challenges and opportunities in its business landscape.

Stock Performance

Following the Q1 results announcement and management's commentary on a potential stake sale, the company's shares fell by 7.00%.

Potential Stake Sale

The company's promoters are evaluating a minority stake sale for family estate planning purposes. This news has contributed to the stock's volatility.

Product Portfolio and Expansion

Clean Science & Technology continues to diversify its product mix, with over 25% of revenue now coming from newer launches. The company has successfully commercialized its entire HALS (Hindered Amine Light Stabilizers) capacity planned under phase 1, with sales volumes accelerating across multiple HALS grades.

Future Outlook

Despite the revised near-term growth projections, Clean Science & Technology remains committed to its long-term expansion plans. The company is focusing on developing a wider range of products, including an expanded HALS series, DHDT, BHT, and new offerings in the performance chemical segment.

Quarterly Expectations

Management expects the second quarter (Q2) growth to mirror the slower pace observed in Q1. However, they anticipate an uptick in performance during Q3, with Q4 projected to show particularly strong growth.

Investors and analysts will be keenly awaiting more details after the Q2 results to gain further insights into the company's performance and strategic direction in light of these adjusted projections and potential stake sale.

Clean Science & Technology continues to navigate the challenges of the specialty chemicals market while leveraging its R&D capabilities and diversified product portfolio to drive sustainable growth.

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.