CLEAN SCIENCE & TECH 2021-22 Annual Report Analysis

Sun, 21 Aug

CLEAN SCIENCE & TECH has announced its results for the year ended March 2022. Let us have a look at the detailed performance review of the company during FY21-22.

CLEAN SCIENCE & TECH Income Statement Analysis

• Operating income during the year rose 33.7% on a year-on-year (YoY) basis.
• The company's operating profit increased by 15.8% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 43.8% in FY22 as against 50.6% in FY21.
• Depreciation charges increased by 44.8% and finance costs increased by 36.2% YoY, respectively.
• Other income grew by 16.9% YoY.
• Net profit for the year grew by 15.2% YoY.
• Net profit margins during the year declined from 38.7% in FY21 to 33.4% in FY22.

CLEAN SCIENCE & TECH Income Statement 2021-22

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Net Sales	Rs m	5,124	6,849	33.7%
Other income	Rs m	256	300	16.9%
Total Revenues	Rs m	5,381	7,149	32.9%
Gross profit	Rs m	2,592	3,002	15.8%
Depreciation	Rs m	172	249	44.8%
Interest	Rs m	3	4	36.2%
Profit before tax	Rs m	2,673	3,048	14.0%
Tax	Rs m	689	763	10.7%
Profit after tax	Rs m	1,984	2,285	15.2%
Gross profit margin	%	50.6	43.8
Effective tax rate	%	25.8	25.0
Net profit margin	%	38.7	33.4

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CLEAN SCIENCE & TECH Balance Sheet Analysis

• The company's current liabilities during FY22 stood at Rs 1 billion as compared to Rs 1 billion in FY21, thereby witnessing an increase of 32.3%.
• Long-term debt down at Rs 3 million as compared to Rs 3 million during FY21, a fall of 20.2%.
• Current assets rose 44% and stood at Rs 6 billion, while fixed assets rose 34% and stood at Rs 4 billion in FY22.
• Overall, the total assets and liabilities for FY22 stood at Rs 9 billion as against Rs 7 billion during FY21, thereby witnessing a growth of 40%.

CLEAN SCIENCE & TECH Balance Sheet as on March 2022

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Networth	Rs m	5,397	7,680	42.3
Current Liabilities	Rs m	1,020	1,349	32.3
Long-term Debt	Rs m	3	3	-20.2
Total Liabilities	Rs m	6,599	9,247	40.1
Current assets	Rs m	3,951	5,703	44.3
Fixed Assets	Rs m	2,648	3,544	33.8
Total Assets	Rs m	6,599	9,247	40.1

CLEAN SCIENCE & TECH Cash Flow Statement Analysis

• CLEAN SCIENCE & TECH's cash flow from operating activities (CFO) during FY22 stood at Rs 1 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY22 stood at Rs -786 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY22 stood at Rs -1 million, an improvement of 98% on a YoY basis.
• Overall, net cash flows for the company during FY22 stood at Rs 486 million from the Rs 1 million net cash flows seen during FY21.

CLEAN SCIENCE & TECH Cash Flow Statement 2021-22

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-21	Mar-22
Cash Flow from Operating Activities	Rs m	1,928	1,272	-34.0%
Cash Flow from Investing Activities	Rs m	-1,868	-786	-
Cash Flow from Financing Activities	Rs m	-59	-1	-
Net Cash Flow	Rs m	1	486	34,831.7%

Current Valuations for CLEAN SCIENCE & TECH

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 21.5, an improvement from the EPS of Rs 18.7 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 1,744.3, stands at 78.3 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 24.1 times, while the price to sales ratio stands at 27.1 times.
• The company's price to cash flow (P/CF) ratio stood at 86.4 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*
Sales per share (Unadj.)	Rs	48.2	64.5
TTM Earnings per share	Rs	18.7	21.5
Diluted earnings per share	Rs	18.7	21.5
Price to Cash Flow	x	0.0	86.4
TTM P/E ratio	x	0.0	78.3
Price / Book Value ratio	x	0.0	28.5
Market Cap	Rs m	0	218,872
Dividends per share (Unadj.)	Rs	2.5	3.3

Ratio Analysis for CLEAN SCIENCE & TECH

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 4.2x during FY22, from 3.9x during FY21. The current ratio measures the company's ability to pay short-term and long-term obligations.

Interest Coverage Ratio: The company's interest coverage ratio deteriorated and stood at 687.5x during FY22, from 820.9x during FY21. The interest coverage ratio of a company states how easily a company can pay its interest expense on outstanding debt. A higher ratio is preferable.

• Profitability Ratios

Return on Equity (ROE): The ROE for the company declined and down at 29.8% during FY22, from 36.8% during FY22. The ROE measures the ability of a firm to generate profits from its shareholders capital in the company.

Return on Capital Employed (ROCE): The ROCE for the company declined and down at 39.7% during FY22, from 49.6% during FY21. The ROCE measures the ability of a firm to generate profits from its total capital (shareholder capital plus debt capital) employed in the company.

Return on Assets (ROA): The ROA of the company declined and down at 24.8% during FY22, from 30.1% during FY21. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*
Current ratio	x	3.9	4.2
Debtors’ Days	Days	53	82
Interest coverage	x	820.9	687.5
Debt to equity ratio	x	0.0	0.0
Return on assets	%	30.1	24.8
Return on equity	%	36.8	29.8
Return on capital employed	%	49.6	39.7

To see how CLEAN SCIENCE & TECH has performed over the last 5 years, please visit here.

CLEAN SCIENCE & TECH Share Price Performance

Over the last one year, CLEAN SCIENCE & TECH share price has moved up from Rs 1,541.7 to Rs 1,744.3, registering a gain of Rs 202.6 or around 13.1%.

Overall, the S&P BSE SENSEX is up 7.2% over the year.

(To know more, check out historical annual results for CLEAN SCIENCE & TECH and quarterly results for CLEAN SCIENCE & TECH)

Read: Latest Annual Report Analysis of CLEAN SCIENCE & TECH