Pondy Oxides & Chemicals Ltd. Poised for Strategic Growth amid Strong Q1FY25 Performance

Pondy Oxides & Chemicals Ltd. (POCL) is advancing its growth strategy with significant operational and financial developments. The company reported strong results for Q1FY25, with consolidated revenue reaching INR 445 crore, a 37% year-on-year increase and a 23% rise quarter-on-quarter. This growth was driven by increased production and sales in both the lead and plastics segments. Consolidated EBITDA surged by 76% year-on-year to INR 24 crore, improving EBITDA margins to over 5%, compared to 4% in Q1FY24. Additionally, finance costs reduced by 38%, contributing to a 216% increase in consolidated PAT, which stood at INR 13 crore for the quarter.

On a standalone basis, POCL also posted robust numbers, with revenue from operations growing by 36%, EBITDA by 70%, and PAT by 141% year-on-year. The company’s operational strength was further highlighted by a 38% increase in lead production to 20,692 metric tons, and a 46% rise in lead sales to 20,699 metric tons, with a sales mix of 35% domestic and 65% exports.

In terms of strategic developments, POCL is expanding its lead production capacity from 1,32,000 metric tons to 2,04,000 metric tons annually, in two phases. The first phase of this expansion, adding 36,000 metric tons, is underway at the Thervoykandigai unit in Tamil Nadu, with trial runs expected by Q4FY25. The company is investing in advanced automation and sustainable manufacturing technologies to reduce its carbon footprint, supported by a preferential issue and internal accruals.

In addition to its operational achievements, POCL recently announced plans to raise INR 250 crore via Qualified Institutional Placements (QIP) to strengthen its financial position and fund growth initiatives. The company also declared a 1:2 stock split, effective from October 16, 2024, aimed at improving share liquidity and accessibility for investors. Further, POCL appointed R.S. Vaidhyanathan as Executive Director, bringing over 30 years of experience in the metal manufacturing and recycling sectors.

With a positive cash flow from operations, reduced finance costs, and robust shareholder returns, POCL is well-positioned for continued growth. The company’s strategic focus on capacity expansion, sustainable practices, and financial discipline underscores its commitment to enhancing operational performance and shareholder value. Meanwhile, the Company will also hold its investor Call on Thursday, October 17, 2024, at 04.00 P.M. IST. Click here to register.