Thread by @ValueEducator

#Cleansciences Q3 Concall Highlights 🧪🧪

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Operational Highlights
1. Recorded highest ever revenue and PAT in Q3 FY2022

2. Total revenues increased by 18% and 44% on Q-o-Q and Y-o-Y basis respectively to ₹178.2 Cr in Q3FY22

3. EBITDA stood at ₹76.1 Cr with EBITDA margins at 42.7%

4. In 9MFY22, Domestic region contributed 26% followed by 40% from China, 14% from Europe, 13% from the USA and 6% RoW (74% of revenues from export)

5. Gross margins shrunk to 64.5% in Q3FY22 from 75.7% in Q3FY21

6. The incremental prices were marginally passed on and as the contract ended in December, new contracts are on revised prices and will be reflected from next quarter

7. Acquired new clients

8. DCC plan was underutilised to 30-35% , rest of the products stood at 65-70% utilisation

9. ₹100Cr annual revenue from new products is anticipated at optimum utilisation

10. Addition of capacity and increasing customers wallet share will drive the future growth

11. Older products have better margins compared to new launches.

Performance chemicals

1. 65% of revenues were contributed from performance chemicals

2. Increased realisations across all products

3. Strong volume offtake for BHA during Q3 FY22 compared to Q3 FY21

FMCG

1. 15% from FMCG chemicals
2. Increased volume offtake and improved realisations for all key products in Q3 FY22 compared to Q3 FY21

New products

1. PBQ and TBHQ are new products to be launched this quarter

2. PBQ is an import substitute and most of the sales are focused in domestic region

3. Only a few companies of which 2 from China are manufacturers for PBQ. The prices range from 20$ to 30$.

4. PBQ is tricky product as it is oxidation reaction and any changes in colour will result in rejection by clients

5. TBHQ is more of export oriented product and used as stabiliser in edible oils

6. BHA and Ascorbyl palmitate goes hand in hand with TBHQ

7. TBHQ is more of catalytic reaction process

8. Hydroquinone will be the raw material used to make new products and will be procured from domestic markets

The company does not have plans on backward integration for the product until necessary

Capex

1. Two new plants commissioned in unit 3 for the new products(PBQ and TBHQ)
2. FY22 capex spend stood at ₹150 Cr
3. Addition of capacities of MEHQ and Guaiacol by 20-30% in mid of march