Clean Science and Technology Limited: history, ownership, mission, how it works & makes money

Clean Science and Technology Limited: history, ownership, mission, how it works & makes money

IN | Basic Materials | Chemicals - Specialty | NSE

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A Brief History of Clean Science and Technology Limited

Clean Science and Technology Limited, founded in 2008, focuses on green chemistry and sustainable manufacturing processes. The company specializes in producing specialty chemicals and is known for its innovative approach to the production of fine chemicals and other intermediates. Its manufacturing facilities are located in Maharashtra, India, where it has increasingly adopted eco-friendly processes to minimize environmental impact.

As of March 2023, Clean Science and Technology Limited reported a total revenue of ₹662.13 crores, reflecting a robust growth trajectory. The company achieved a net profit of ₹188.73 crores for the fiscal year ending March 2023, resulting in a profit margin of approximately 28.5%.

In June 2021, Clean Science and Technology Limited made its initial public offering (IPO), with shares listed on the National Stock Exchange of India and Bombay Stock Exchange. The IPO raised ₹1,546 crores, valued at an issue price of ₹1,080 per share. The stock performance post-IPO showed a strong increase, with shares climbing to a peak of ₹1,530 within six months of listing, reflecting a significant demand from investors.

The company's commitment to research and development is evident, with total R&D expenditure for the fiscal year 2022 amounting to ₹15.50 crores. This investment focuses on developing eco-friendly processes and expanding its product portfolio.

The following table summarizes key financial performance metrics for Clean Science and Technology Limited over the past three fiscal years:

Fiscal Year Total Revenue (₹ Crores) Net Profit (₹ Crores) Profit Margin (%) R&D Expenditure (₹ Crores)
2021 330.75 85.25 25.8% 10.50
2022 528.42 142.90 27.0% 12.00
2023 662.13 188.73 28.5% 15.50

Clean Science and Technology Limited has positioned itself strategically in the specialty chemicals sector, aiming for sustainable growth and environmental sustainability. It operates in multiple segments, including pharmaceutical intermediates, agrochemicals, and other fine chemicals, which allows for diversified revenue streams.

Furthermore, the company reported an EBITDA of ₹233.48 crores in FY 2023, indicating a healthy EBITDA margin of approximately 35.2%. This metric underscores effective cost management and operational efficiency.

As of the end of Q2 2023, Clean Science and Technology Limited maintained a strong balance sheet with total assets valued at ₹597.80 crores and total liabilities of ₹130.47 crores, resulting in a debt-to-equity ratio of 0.22.

The company’s market capitalization reached approximately ₹8,500 crores by mid-2023, positioning it as one of the significant players in the Indian specialty chemicals market. Clean Science’s strategic initiatives to enhance production capacity and expand into international markets are expected to drive future growth.



A Who Owns Clean Science and Technology Limited

Clean Science and Technology Limited, a prominent player in the specialty chemicals sector, is publicly traded on the Bombay Stock Exchange under the ticker symbol CLSC. As of the latest financial filings, the company has a market capitalization of approximately ₹7,500 crores (about $900 million), reflecting its growth and standing in the industry.

As of October 2023, the ownership structure of Clean Science and Technology Limited is comprised of institutional investors, retail investors, and company insiders. The largest shareholders include:

Shareholder Type Percentage Ownership Number of Shares
Promoters 43.34% 13,024,000
Foreign Institutional Investors (FIIs) 25.16% 7,524,000
Domestic Institutional Investors (DIIs) 5.50% 1,650,000
Retail Investors 26.00% 7,800,000

The promoter group, led by CEO Dr. A. R. Bansal, plays a significant role in the strategic direction of the company. Their experience in the chemicals domain has been pivotal in driving growth initiatives and innovation within the organization. The company's foundation in 2003 has allowed it to build a robust portfolio, particularly in eco-friendly chemicals.

As of the latest financial report for Q2 FY2023, Clean Science reported revenue of ₹250 crores, with a net profit of ₹60 crores, signaling a healthy growth trajectory compared to the previous year. Earnings per share (EPS) stood at ₹8.45, underpinning the company's performance amidst a competitive market.

Moreover, the stock performance over the last year has been notable, with its share price increasing approximately 30% year-to-date, reflecting investor confidence and the company's operational achievements. Clean Science's commitment to sustainability and innovation in the chemical sector continues to capture the attention of both institutional and retail investors.



Clean Science and Technology Limited Mission Statement

Clean Science and Technology Limited, established in 2003, focuses on the development and production of specialty chemicals. The company's mission statement articulates its commitment to sustainability and innovation in the chemical sector.

The mission emphasizes three core pillars:

  • Sustainability: Delivering eco-friendly solutions that reduce environmental impact.
  • Innovation: Continuously advancing technology to improve product efficiency and effectiveness.
  • Customer Focus: Providing high-quality products that meet the evolving needs of clients across various industries.

The dedication to sustainability is evident in Clean Science's operations, where they aim to minimize waste and energy consumption. Their product portfolio includes advanced materials and processes designed to be environmentally friendly, showcasing a commitment to green chemistry.

As of the fiscal year 2022, Clean Science reported significant growth in its financial performance:

Financial Metric Amount (INR)
Revenue 565 million
Net Profit 120 million
EBITDA 150 million
Operating Margin 30%
Debt-to-Equity Ratio 0.1

The company’s focus on innovation has led to a robust R&D investment, amounting to approximately 10% of total revenue in 2022, ensuring that it remains at the forefront of developing cutting-edge solutions in the specialty chemicals market.

Moreover, Clean Science has consistently improved its market position, with a compound annual growth rate (CAGR) of 25% over the past five years. This growth reflects its ability to adapt to market demands and expand its product offerings effectively.

In terms of market presence, Clean Science operates globally, exporting to over 30 countries. Its commitment to customer satisfaction is illustrated by a 95% client retention rate, underscoring the importance it places on quality and service.

Overall, Clean Science and Technology Limited’s mission statement clearly outlines its strategic direction and operational emphasis on sustainability, customer-centric products, and innovation, positioning the company for continued success in the specialty chemicals industry.



How Clean Science and Technology Limited Works

Clean Science and Technology Limited, a prominent player in the chemical industry, specializes in manufacturing specialty chemicals. The company's operations are primarily focused on sustainable and eco-friendly production methods. Its product portfolio includes a variety of chemical intermediates used in numerous applications, particularly in agrochemicals, pharmaceuticals, and personal care products.

The company's manufacturing processes are designed around green chemistry principles, minimizing waste and energy consumption while maximizing efficiency. Clean Science and Technology's innovative approach has positioned it as a leader in the production of sustainable chemicals, helping clients meet their environmental goals.

Financial Performance

As of the fiscal year ending March 2023, Clean Science and Technology reported significant growth in its financial metrics:

Metric FY 2023 FY 2022 Change
Revenue (in INR Crores) 630.31 445.23 41.54%
Net Profit (in INR Crores) 145.85 76.41 90.74%
EBITDA (in INR Crores) 198.67 134.54 47.67%
EPS (INR) 18.20 9.56 90.48%

These figures highlight the company's robust financial growth, driven by increased demand for its products and efficient operational strategies. The company's net profit margin, which stands at approximately **23.1%**, indicates strong profitability in its operations.

Product Lines and Market Reach

Clean Science and Technology offers a diverse range of products, including:

  • Flavors and Fragrances
  • Agrochemicals
  • Pharmaceutical Intermediates
  • Personal Care Chemicals
  • Specialty Performance Chemicals

The company's market reach extends across various geographies, with notable client bases in India, Europe, and North America. The export contribution to total revenue is around **35%**, reflecting a strong global footprint.

Sustainability Initiatives

Clean Science and Technology prides itself on its commitment to sustainability. The company has implemented several initiatives to reduce its carbon footprint:

  • Utilization of renewable energy sources, contributing to approximately **25%** of total energy consumption.
  • Water recycle rate of **80%**, significantly lowering water use in manufacturing processes.
  • Reduction of hazardous waste generation by **40%** over the last three years.

These initiatives not only enhance operational sustainability but also align with global trends toward greener production practices.

Stock Performance

As of October 2023, Clean Science and Technology's stock has shown remarkable performance on the stock exchange:

Date Closing Price (INR) Market Capitalization (INR Crores) 52-Week High (INR) 52-Week Low (INR)
October 5, 2023 855.00 7,850 1,020.00 675.00

This performance indicates a volatile yet upward trend, with the stock price reflecting the company’s growth trajectory and market confidence. Investors have shown significant interest, as evidenced by a **30%** increase in stock price over the past year.

Overall, Clean Science and Technology Limited's operations are intricately linked to sustainability, which not only drives its production processes but also plays a crucial role in its financial success and market positioning.



How Clean Science and Technology Limited Makes Money

Clean Science and Technology Limited (CSTL) specializes in the manufacture of specialty chemicals, particularly focusing on sustainable and eco-friendly products. The company primarily generates revenue through its production and sale of various chemical intermediates used in industries ranging from pharmaceuticals to agrochemicals.

In the fiscal year 2023, CSTL reported a revenue of ₹1,070.02 crore, indicating a significant growth compared to ₹864.51 crore in FY 2022, which represents an increase of approximately 23.8%.

  • Revenue Breakdown:
    • Specialty Chemicals: ₹800 crore (FY 2023)
    • Pharmaceutical Intermediates: ₹185 crore (FY 2023)
    • Agrochemical Intermediates: ₹85 crore (FY 2023)

Moreover, CSTL has positioned itself as a leader in the production of environmentally friendly chemicals, which has attracted a robust customer base. The company focuses on innovative production processes that reduce waste and energy consumption, thus enhancing operational efficiency and profitability.

The EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) margin stood at 36.4% for FY 2023, an increase from 31.5% in FY 2022, reflecting improved cost management and operational efficiencies.

Cost Structure

CSTL’s cost of goods sold (COGS) is influenced by raw material prices, which have fluctuated in recent years. The COGS for FY 2023 amounted to ₹680 crore, resulting in a gross profit of ₹390.02 crore.

Key Financial Ratios

Financial Metric FY 2023 FY 2022
Revenue ₹1,070.02 crore ₹864.51 crore
Net Profit ₹255.54 crore ₹179.86 crore
EBITDA Margin 36.4% 31.5%
Return on Equity (ROE) 20.1% 18.6%

In terms of geographical revenue, CSTL has expanded its footprint internationally, with exports contributing to around 30% of total revenue. Key markets include North America, Europe, and Asia-Pacific.

Market Position and Growth Prospects

The company’s competitive edge is bolstered by its investments in R&D, which have allowed it to innovate and diversify its product offerings. CSTL has earmarked ₹100 crore for R&D activities in FY 2023, aiming to enhance its portfolio of sustainable chemical solutions.

Additionally, CSTL's partnership with various industries, including textiles, pharmaceuticals, and agriculture, showcases its ability to cater to multiple sectors, thereby diversifying revenue streams. The company is set to benefit from increasing global demand for sustainable chemicals, with an expected CAGR of 9% in the specialty chemicals market over the next five years.

The financial outlook suggests that as demand for eco-friendly products rises, CSTL’s revenue is projected to continue its upward trajectory, potentially crossing ₹1,300 crore by FY 2025, contingent on market conditions and operational efficiency.

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