Categories AlphaGraphs, Earnings, Industrials

POCL Reports Robust FY24 Performance with Revenue Growth and Significant Debt Reduction

Pondy Oxides and Chemicals Limited (POCL) has reported strong financial and operational performance for FY24, marking a 4% increase in standalone revenues to INR 1,524 Crores and a consolidated revenue rise to INR 1,541 Crores. The company’s EBITDA margin remained stable at over 5%, though overall EBITDA and PAT margins saw slight declines due to reduced margins in other verticals and increased finance costs. The lead division, however, maintained a robust margin of 6.3%. Notably, POCL reduced its net debt by 52% to INR 71 Crores, enhancing its net debt-to-equity ratio to a solid 0.2.

Operationally, the company reported significant milestones. Capacity utilization in smelting increased by 25%, reaching 42,500 MT. The company also commenced production and sales in the plastics division, achieving sales of 2,876 MT. In its first year, the aluminum division posted revenues of INR 42 Crores.

Strategic initiatives included the acquisition of 123 acres of industrial land in Mundra for INR 41.40 Crores, positioning POCL to better serve the Western region and boost global exports. The Thervoykandigai plant’s expansion will increase lead production capacity to 72,000 MT annually, with an initial phase investment of INR 70 Crores. POCL also signed an MoU with Tamil Nadu’s nodal agency to develop advanced recycling and manufacturing plants, with an investment range of INR 300 to INR 500 Crores over five years.

Financially, POCL improved its current ratio to 2.44, reduced working capital days to 53, and maintained a strong ROCE of 17%. The company has also raised INR 132.5 Crores through preferential allotment to fund its strategic projects and future growth.

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