Clean Science and Technology

Key Financial Highlights

Particulars Q4 FY25 Q3 FY25 Q4 FY24 FY25 FY24

Revenue from Operations ₹2,453.86M ₹2,315.57M ₹2,254.79M ₹9,223.16M ₹7,894.39M
Other Income ₹115.80M ₹45.96M ₹134.02M ₹361.83M ₹383.51M
Total Income ₹2,569.66M ₹2,361.53M ₹2,388.81M ₹9,584.99M ₹8,277.90M

�Growth

 Revenue (YoY): Up ~16.8%

 Total Income (YoY): Up ~15.8%
 Net Profit (YoY): Up ~18%

�Expenses Breakdown

Expense Category FY25 FY24 % Change

Cost of Materials Consumed ₹3,216.92M ₹2,776.05M +15.9%
Employee Benefits ₹495.80M ₹462.80M +7.1%
Depreciation ₹444.43M ₹437.83M +1.5%
Finance Costs ₹2.81M ₹8.34M ↓66%
Other Expenses ₹1,478.67M ₹1,304.51M +13.3%
Total Expenses ₹5,679.49M ₹4,968.09M +14.3%

�Profit & Tax

Metric FY25 FY24

Profit Before Tax (PBT) ₹3,905.50M ₹3,309.81M
Tax Expense ₹982.48M ₹832.93M
Net Profit ₹2,923.02M ₹2,476.88M
Comprehensive Income ₹2,923.14M ₹2,476.31M

�Other Key Metrics

 Earnings Per Share (Basic): ₹27.51 (FY25) vs ₹23.31 (FY24)

 Paid-up Equity Capital: ₹106.27M
 Other Equity: ₹14,461.01M (↑ from ₹12,050.13M)
Balance Sheet Summary

Assets

%
Particulars FY25 FY24 Comments
Change

Driven by a sharp rise in long-term

Non-current Assets 9,594.02 7,797.15 +23.0%
investments

• Property, Plant &

3,599.74 3,966.90 -9.2% Slight depreciation or disposal of assets
Equipment

• Capital Work-in-Progress 35.45 17.64 +101% Indicates new capex underway

• Investments (Non-
5,885.30 3,734.93 +57.5% Major contributor to asset growth
current)

Current Assets 6,454.82 5,908.97 +9.2% Moderate growth

• Trade Receivables 1,836.11 1,616.50 +13.6% Aligns with revenue growth

• Cash & Cash Equivalents 148.16 90.30 +64.0% Improved liquidity

• Current Investments 3,187.70 2,925.58 +9.0% Healthy treasury management

Total Assets 16,048.84 13,706.12 +17.1% Strong year-over-year asset expansion

Equity & Liabilities

%
Particulars FY25 FY24 Comments
Change

Equity Share Capital 106.27 106.25 - Minimal change

Other Equity 14,461.01 12,050.13 +20.0% Retained earnings growth

Total Equity 14,567.28 12,156.38 +19.8% Healthy capital accumulation

Non-Current Liabilities 347.48 336.29 +3.3% Mostly stable

Reflects higher taxable temporary

• Deferred Tax Liability 337.66 322.32 +4.8%
differences
 %
Particulars FY25 FY24 Comments
Change

Current Liabilities 1,134.08 1,213.45 -6.5% Improvement in working capital

• Trade Payables (Non- Possible better payment cycles or lower

713.49 865.06 -17.5%
MSE) procurement

• Other Financial
280.22 205.73 +36.2% Increase in short-term obligations
Liabilities

Cash Flow Summary (₹ in million)

Cash Flow
FY25 FY24 Change Key Highlights
Category

Operating ↑ Higher profit before tax and better working

2,793.86 2,774.05
Activities (A) ₹19.81M capital management

Investing ↓ Consistent outflows driven by heavy investments

(2,211.81) (2,276.41)
Activities (B) ₹64.60M in subsidiaries and financial instruments

Financing Dividend payout remains constant; lower interest

(524.23) (530.92) ↓ ₹6.69M
Activities (C) costs

Net Change in
+57.82 (33.28) +₹91.10M Positive cash build-up vs. prior year’s decline
Cash

Closing Cash ↑
148.16 90.30 Stronger year-end liquidity
Balance ₹57.86M

Key Insights

�Operating Cash Flow

 Profit Before Tax rose by ₹595.7M YoY.

 Positive adjustments from non-cash expenses like:
o Depreciation (₹444.43M)
o Non-cash ESOP charges (₹7.48M)
 Negative adjustments due to:
o Fair value gains and profit on sale of investments (totaling over ₹244M)
o Working capital consumed some cash, notably:
 Trade receivables increased by ₹219.30M
 Trade payables decreased by ₹174.78M
�Net Operating Cash Flow remained stable, despite the rise in profits, due to changes in
working capital and tax payments (₹956.34M).

�Investing Cash Flow

 Large capital deployment in subsidiaries continued (₹2,148.90M), same as last year.

 Active churn in investments (buying ₹4,360M and selling ₹4,367M).
 Net investing outflow remained high, though slightly improved YoY.

�Capex dropped by over 50% (from ₹190.37M to ₹92.73M), possibly indicating a

slowdown in asset expansion.

�Financing Cash Flow

 Dividend payout unchanged at ₹531M.

 Slight increase in cash from ESOP-related share issues.
 Finance costs reduced (₹2.32M vs. ₹8.23M), supporting earlier observations of
reduced debt or improved financial efficiency.

�Overall Cash Position

 Net increase in cash: ₹57.82M (vs. decline last year)

 Ending cash at ₹148.16M (↑64%)
 Stronger liquidity and cash reserves heading into FY26

1. Profitability Analysis

�Strong Top-line Growth

 Revenue from operations grew by ~16.8% YoY (₹9,223M vs ₹7,894M).

 Total income increased to ₹9,585M (↑15.8%), including other income like
investment returns.

�Healthy Bottom-line Growth

 Profit before tax (PBT): ₹3,905.50M (↑18%)

 Net profit (PAT): ₹2,923.02M (↑18%)

�Improving Margins

Metric FY25 FY24

 Metric FY25 FY24

Operating Margin (PBT/Revenue) 42.34% 41.93%

Net Profit Margin (PAT/Revenue) 31.69% 31.38%

Basic EPS ₹27.51 ₹23.31

�Takeaway: Exceptional profit margins for an Indian company. The business is operating
efficiently and scaling profitably.

2. Balance Sheet Analysis

�Asset Expansion (↑17.1%)

 Total Assets: ₹16,049M (vs ₹13,706M in FY24)

 Growth led by:
o Non-current investments (↑₹2,150M+)
o Modest increase in working capital items
o Strong cash reserves

�Equity Growth (↑19.8%)

 Total equity: ₹14,567M (vs ₹12,156M)

 Implies high internal accruals and low reliance on debt

�Limited Liability Growth

 Total liabilities fell to ₹1,482M (↓4.4%)

 Debt negligible, with finance costs and lease liabilities minimal

�Takeaway: The company is well-capitalized, with a solid equity cushion and almost debt-
free operations. The equity-to-assets ratio is ~91%, indicating low financial risk.

3. Cash Flow Health

�Stable Operating Cash Flow

 Cash from operations: ₹2,794M (vs ₹2,774M)

 Maintains strong cash conversion despite growing working capital needs

�Heavy Investment Outflows

 Total investment outflow: ₹2,212M

 o ₹2,149M into a subsidiary
o Regular churn in market instruments (₹4,360M purchase, ₹4,367M sales)

�No External Financing Required

 Paid ₹531M in dividends

 No borrowing — interest cost reduced by over 70%

�Net Increase in Cash

 FY25 ended with ₹148.16M cash (↑64%)

�Takeaway: The company is comfortably self-financing both its growth and dividends.
Free cash flow is sufficient to fund investments without borrowing.

4. Operational Efficiency & Cost Structure

Category FY25 FY24 % Change

Cost of materials ₹3,216.92M ₹2,776.05M ↑15.9%

Employee benefits ₹495.80M ₹462.80M ↑7.1%

Depreciation ₹444.43M ₹437.83M ↑1.5%

Other expenses ₹1,478.67M ₹1,304.51M ↑13.3%

 Material cost and other expenses scale with revenue — expected

 Personnel costs and depreciation are well contained
 Finance costs dropped significantly (₹2.81M vs ₹8.34M), implying lower debt or
better terms

�Takeaway: Operationally lean and tightly managed. No signs of cost inflation exceeding
revenue growth.

5. Key Financial Ratios

Metric FY25 Comment

ROE (PAT / Avg Equity) ~21.6% Excellent return on shareholder funds

ROA (PAT / Avg Assets) ~19.7% Very strong asset efficiency

Current Ratio 5.69x Very high short-term liquidity

 Metric FY25 Comment

Debt to Equity ~0.01x Practically debt-free

EPS Growth 18% Sustained value creation

Final Verdict: Outstanding Financial Position

�Strengths

 High revenue and profit growth with stable margins

 Strong cash generation and minimal debt
 High returns on equity and assets
 Consistent dividend payout
 Prudent capital deployment in subsidiaries and investments

1. Rising Trade Receivables

 Trade receivables increased by ₹219M (↑13.6%) while revenue grew ~17%.

 Receivables growth is not yet alarming, but if this trend continues:
o It may signal slower customer payments or weaker credit control.
o Could lead to higher working capital requirements or potential bad debts.

� Watchpoint: Monitor DSO (Days Sales Outstanding) and aging of receivables.

2. Sharp Drop in Trade Payables

 Trade payables declined by ₹151.57M (↓17.5%).

 While this could mean faster payments to suppliers (positive for vendor relationships),
it can also:
o Indicate weaker negotiating power.
o Potentially strain cash flow if operating cash dips or working capital is tight.

� Watchpoint: Ensure this is strategic and not due to pressure from suppliers or early-
payment clauses.

3. High Dependence on Investment Income

 Other income contributes ₹361.83M (3.77% of total income).

 Notably includes:
o Fair value gains (₹108M)
o Sale profits on FVTPL instruments (₹136M)
  Indicates dependence on market-based income, which is non-operational and
volatile.

� Watchpoint: This could inflate profit figures and create unpredictability in earnings if
markets turn.

4. Large Outflows to Subsidiaries

 ₹2,149M invested into a subsidiary again this year (similar to FY24).

 Repeated and large investments suggest:
o The subsidiary is still capital-absorbing (not yet profitable or cash-
generative).
o There is a risk of value erosion if it doesn’t start returning value soon.

� Watchpoint: Management should disclose the expected ROI or strategic benefit of these
investments.

5. Minimal Interest Expense – But Why?

 Finance cost dropped from ₹8.34M → ₹2.81M

 While this is good in isolation, it could reflect:
o Under-leveraging – not using cheap debt when it may be beneficial
o Or lack of growth through borrowed capital (missing scale-up
opportunities)

� Watchpoint: Reevaluate capital structure. Some prudent leverage can improve returns.

6. Employee Cost Stability May Mask Risks

 Employee cost increased by just 7.1% YoY.

 While positive for margin control, consider:
o Inflation-adjusted compensation may be falling.
o Risk of talent attrition if not competitive in wage growth.

� Watchpoint: Benchmark HR costs against industry peers.

7. Reduction in Fixed Assets

 Property, plant & equipment declined from ₹3,966.90M → ₹3,599.74M (↓9.2%)

 Could indicate:
o Asset disposal (which reduces productive capacity)
 o Or underinvestment in physical growth

� Watchpoint: Ensure this isn’t due to shrinking core operations or deferring necessary
capex.