Does anyone know what is Qtrly revenue guidance for HALS for the 701 and 7710 that is expected to reach 50% utilization in next 2 Qtrs?
I understand there are more HALS products getting launched in December that is also targeting export market. any revenue guidance given for that?
Deflation in China. Will it impact chemical industry in India ? If so someone explain it.
Main product of Clean science is MEHQ, Guiicol. While searching I found that another listed company name - Camlin FIne science also makes MEHQ, Guiicol & other specialty chemicals. Clean science is considered as catalyst maker so in simple terms, process to make MEHQ & Guiicol by clean science & this Camlin Fine science is different?
Does Clean science have a competitive cost advantage over such other makers?
Also just read that this Camlin fine science has temporarily stopped their Diphenol plant in Italy citing very poor demand & high RM pricing. Does this diphenol comes in picture in anyway for clean science ? If anyone has idea about it, can throw more light on it.
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Clean science product MEHQ & other product by catalyst route with more clean process and claim to have much cost advantage over others.
They are the largest manufacturer of the world (in terms of manufacturing capacities) and accounted for 55% of the global capacity. Other competitors in the industry include Solvay and Camlin Fine Science. they had got supply order from BASF for 3 years which they are trying from last 10 years
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If I recall correctly, they manufacture MEHQ via the vapor phase technology, which substantially improves their gross margin (~70%) vs other companies manufacturing the same product. This is one of the reason why they have cost leadership across MEHQ & its derivatives.
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Clean Science and Technology acquired additional 11,70,572 shares in Clean Fine-Chem Limited, the company announced through an exchange filing. The company bought additional shares for a premium of Rs 588 aggregating to Rs 70,00,02,056 (70Cr).
CSTL subscribed to the additional equity shares as it is in process of setting up a manufacturing facility for its speciality chemical business. The additional capital will be used for funding its green field projects.
Corporate filing of the same
Discl: Not holding, tracking.
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Does anyone did calculations that HALS series will contribute how much cr. revenue when completely rolled out in FY25 or FY26?
I just wanted to understand the recent 2 capex which they are doing 1) Increased MEHQ capacity by 50% & these HALS series will contribute how much in top line? Say FY23 they did 936cr. in topline, what can we expect by FY25 due to these 2 capex ?
Total capex for HALS in unit 3 and unit 4 - 2ktpa and 15 ktpa. Total 17ktpa. HALS price - 8$ to 10$. This can create revenue of 1000Cr to 1300Cr. But this will take time for realisation, let’s see how the execution will turn out
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How u came to figure of 1000cr.? Sorry for noob question.
10$ means 800rs. Take 15k capacity. That means 1.2 cr.
Also these 15ktpa capacity means per month capacity of 15k/12 ? or 15k/month capacity?
Yes I know it all depends on capacity utilization, demand, execution etc. but just wanted to know what can we expect in next 2-3 yrs. from HALS series.
Edit: Doubt got clarified after reading this. Thanks.
As of recent Concall updates, HALS currently is at the capacity of 2000 MTPA, and Clean Fino CAPEX will add another 15000 MTPA. So, the total capacity will go up to 17000 MTPA.
At average realization of $8-$10/Kg and with 100% capacity utilization, the figures reach upto: 17k * 8 * 1000 (for KGs) = $136 Mn i.e. 1110 Cr.
But, the chemical market has been in a bad phase for the past 6 months. So, either realization might not be up to the expectation or utilization will not be that higher. While HALS is an import substitute product and hence demand will not be a problem according to me, the issue is realizations. Will need to observe every quarter to make a conclusive decision.
Regards,
Not Invested
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It is kilo ton per annum. Kilo (10^3) and ton (10^3)
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Management also told in previous concalls that margin will be comparatively low for newer products. They need to compromise on margin to grow. HALS ramp up we can know in this quarter concall.
Vinati is entering in MEHQ is definitely worrisome. If they can produce MEHQ by same low cost method of anisone vapour as clean science then definitely clean have to give up pricing power & volume. Does anyone knows, Vinati is going to produce MEHQ for self requirement (I think currently Vinati needs MEHQ & they procure it from clean science) or for both - self consumption & selling in market?
Market is anticipating all these risks that’s why price is half from top. All depends on how much margin contraction due to new products & whether vinati is able to produce low cost MEHQ or not.
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In my personal opinion, the Management had a cautious tone in the recent Concall w/ some positives and negatives going forward.
Some notes from the Q2’FY2024 Concall by Management:-
Positives
Product Mix Change:-
This is reflected in improved margins this quarter and will help in product diversification going forward.
New Customer Acquisition for HALS:-
This volume should be reflected in the upcoming quarters for Clean Science
Potential Mean Reversion Play:-
Strategic Capex(30Cr) with Large Revenue(100Cr):-
Negatives
Destocking Pressure to continue:-
This should continue for a couple of quarters
Demand Environment continues to be weak:-
Under performance of Performance Chemical Segment:-
Summary:-
- The valuations of the company continue to be a bit elevated.
- It is a debt free organization with all the planned CAPEX to be funded from internal accruals.
- The overhang of management bringing the stake <75% is done and FII have increased the stake over last 2 quarters in the company.
- Demand environment and destocking situation will potentially result in some headwinds in coming couple of quarters.
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I was going through the DHRP of the company. As mentioned at the start of the thread, there are some criminal litigation against the company and against one of the director.
Two FIRs are against the company in 2016.
And two complaints are against one of the director, one was in 2011 and second was in 2018. In 2011 complaint, there seems to be corporate governance issue as the allegation is of criminal conspiracy for the transfer of 14.5 million shares.
All four cases are pending as per DHRP. Does any members know the current status of these litigation or whether company has given any update?
Disclosure: Not invested.
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key takeaways from Clean Science and Technology Limited’s (CSTL) investor presentation
Financial Highlights
- Revenue: FY 2024 saw a volume-led growth in revenue, with Q4 FY24 recording INR 225 Crore, marking a 16% sequential increase from Q3 FY24.
- EBITDA Margins: Remained robust throughout the year, with Q4 FY24 at 44.4%, slightly down from 49.1% in Q4 FY23.
- Profit After Tax (PAT): For Q4 FY24 stood at INR 74.8 Crore, a 20% increase from Q3 FY24, though there was an 8% decrease year-over-year.
- CAPEX: The company invested approximately INR 235 Crores during FY2024, including INR 215 Crores in a subsidiary.
Business Performance
- Clean Fino-Chem Limited (CFCL): Commercialized in March.
- Dividend: A final dividend of INR 3 per share has been recommended by the board.
- Revenue Mix: Notable increase in revenue share from newer products, especially in the domestic market.
- Geographical Revenue: Americas and Europe maintained steady revenue shares, with an improvement in China’s share in H2 FY2024.
Operational Efficiency
- CAPEX Utilization: Focused on commercializing new products, with significant investments in subsidiary CFCL.
- Asset Turnover: Demonstrated efficient use of assets with a healthy cash balance despite the largest capex in the last two years.
Market Position
- Global Presence: CSTL serves over 500 customers across 30+ countries.
- Product Leadership: Holds the largest capacity globally for flagship products like MEHQ and BHA.
- Innovation: Continuous R&D led to the commercialization of new products like HALS 770 and 701.
Sustainability Commitments
- Renewable Energy: 17.4 MW of solar capacity, with renewable energy accounting for 55% of power consumption.
- Environmental Goals: Aiming to plant over 11,000 trees in the next three years and reduced fresh water consumption by 14%.
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