PL First Cut - Clean Science Technology (CSTM) - Q2FY24

PL First Cut – Clean Science Technology (CSTM) – Q2FY24 – Swarnendu Bhushan – Co – Head of Research, Prabhudas Lilladher Pvt Ltd

Clean Science Technology (CSTM) – Q2FY24 Result Highlights | CMP Rs 1376 | MCap Rs 146.3 bn*

· Revenue at Rs1.81 bn -27% YoY/ -4% QoQ (PLe ~Rs1.9bn) for the quarter majorly led by sales volumes.

· EBITDA at Rs 748mn -23% YoY/ -2% QoQ (PLe Rs696 mn/consensus esti – Rs 765mn). EBITDA margin came at 41.3% (vs 39.4% in Q2FY23 and 40.5% in Q1FY24; PLe ~40.2%).

· PAT at Rs522mn (-23% YoY/ -11% QoQ; PLe Rs435mn consensus esti – Rs 613mn) was impacted by lower operating profits. PAT margins came in at 28.8% vs 27.5%/31.3% in Q2FY23/Q1FY24 respectively.

· Company incurred total capex of Rs 1.65bn during H1, including investment in subsidiary of Rs 1.55bn

We currently have ‘Hold’ rating with SoTP based TP at Rs 1206