CLEAN SCIENCE & TECH 2022-23 Annual Report Analysis

Mon, 17 Jul

CLEAN SCIENCE & TECH has announced its results for the year ended March 2023. Let us have a look at the detailed performance review of the company during FY22-23.

CLEAN SCIENCE & TECH Income Statement Analysis

• Operating income during the year rose 36.6% on a year-on-year (YoY) basis.
• The company's operating profit increased by 34.1% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 43.0% in FY23 as against 43.8% in FY22.
• Depreciation charges increased by 44.8% and finance costs increased by 25.7% YoY, respectively.
• Other income declined by 0.5% YoY.
• Net profit for the year grew by 29.2% YoY.
• Net profit margins during the year declined from 33.4% in FY22 to 31.5% in FY23.

CLEAN SCIENCE & TECH Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	6,849	9,358	36.6%
Other income	Rs m	300	298	-0.5%
Total Revenues	Rs m	7,149	9,656	35.1%
Gross profit	Rs m	3,002	4,025	34.1%
Depreciation	Rs m	249	361	44.8%
Interest	Rs m	4	6	25.7%
Profit before tax	Rs m	3,048	3,956	29.8%
Tax	Rs m	763	1,005	31.7%
Profit after tax	Rs m	2,285	2,952	29.2%
Gross profit margin	%	43.8	43.0
Effective tax rate	%	25.0	25.4
Net profit margin	%	33.4	31.5

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CLEAN SCIENCE & TECH Balance Sheet Analysis

• The company's current liabilities during FY23 down at Rs 1 billion as compared to Rs 1 billion in FY22, thereby witnessing an decrease of -14.4%.
• Current assets rose 13% and stood at Rs 6 billion, while fixed assets rose 47% and stood at Rs 5 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 12 billion as against Rs 9 billion during FY22, thereby witnessing a growth of 25%.

CLEAN SCIENCE & TECH Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	7,680	10,087	31.4
Current Liabilities	Rs m	1,349	1,155	-14.4
Long-term Debt	Rs m	3	0	-100.0
Total Liabilities	Rs m	9,247	11,518	24.6
Current assets	Rs m	5,593	6,303	12.7
Fixed Assets	Rs m	3,544	5,215	47.2
Total Assets	Rs m	9,247	11,518	24.6

CLEAN SCIENCE & TECH Cash Flow Statement Analysis

• CLEAN SCIENCE & TECH's cash flow from operating activities (CFO) during FY23 stood at Rs 3 billion, an improvement of 119.5% on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -3 billion, an improvement of 243.5% on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -550 million on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs -455 million from the Rs 486 million net cash flows seen during FY22.

CLEAN SCIENCE & TECH Cash Flow Statement 2022-23

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-22	Mar-23
Cash Flow from Operating Activities	Rs m	1,272	2,794	119.5%
Cash Flow from Investing Activities	Rs m	-786	-2,698	-
Cash Flow from Financing Activities	Rs m	-1	-550	-
Net Cash Flow	Rs m	486	-455	-

Current Valuations for CLEAN SCIENCE & TECH

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 27.8, an improvement from the EPS of Rs 21.5 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 1,318.9, stands at 47.5 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 13.9 times, while the price to sales ratio stands at 15.0 times.
• The company's price to cash flow (P/CF) ratio stood at 53.0 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*
Sales per share (Unadj.)	Rs	64.5	88.1
TTM Earnings per share	Rs	21.5	27.8
Diluted earnings per share	Rs	21.5	27.8
Price to Cash Flow	x	83.6	53.0
TTM P/E ratio	x	92.7	47.5
Price / Book Value ratio	x	28.5	17.4
Market Cap	Rs m	218,872	175,632
Dividends per share (Unadj.)	Rs	3.3	5.0

Ratio Analysis for CLEAN SCIENCE & TECH

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 5.5x during FY23, from 4.1x during FY22. 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 improved and stood at 710.0x during FY23, from 687.5x during FY22. 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 29.3% during FY23, from 29.8% during FY23. 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 39.3% during FY23, from 39.7% during FY22. 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 improved and stood at 25.7% during FY23, from 24.8% during FY22. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*
Current ratio	x	4.1	5.5
Debtors’ Days	Days	82	57
Interest coverage	x	687.5	710.0
Debt to equity ratio	x	0.0	0.0
Return on assets	%	24.8	25.7
Return on equity	%	29.8	29.3
Return on capital employed	%	39.7	39.3

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 down from Rs 1,557.3 to Rs 1,318.9, registering a loss of Rs 238.4 or around 15.3%.

Overall, the S&P BSE SENSEX is up 24.4% over the year.

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