Pondy Oxides and Chemicals Q1FY25 Revenues, EBITDA and PAT up 37%, 76% and 216%

Pondy Oxides and Chemicals Limited (BSE Code – 532626; NSE Code – POCL), India’s leading recycling and manufacturing company, has posted outstanding financial results for Q1FY25 and embarked on the fiscal year with a positive momentum.

Q1FY25 Key Financial Highlights

• Consolidated Revenue from Operations has increased to INR 445 Cr., up 37% and 23% on YoY and QoQ basis. POCL experienced this substantial growth as a result of increased production, sales, and realizations in both Lead and Plastics.
• Consolidated EBITDA increased by 76% to INR 24 Cr on YoY basis. EBITDA Margins stood strong at 5%+; up from 4%+ in Q1FY24.
• Finance costs decreased by INR 1.44 Cr, a 38% reduction YoY, contributing to an increase in PAT.
• Consolidated PAT increased by 216% to INR 13 Cr on YoY basis. PAT Margins increased to 3%.
• On a Standalone basis also, POCL reported a strong financial performance. Revenue from Operations, EBITDA and PAT increased by 36%, 70% and 141%.
• Sales mix between domestic and export markets stood at 35% and 65% respectively. The percentage of value-added products in the Lead segment has been constant.

Q1FY25 Key Operational Highlights

• The procurement mix of Lead and Plastics through imports is approximately 70% and 55% respectively.
• The capacity utilization of both Lead and Plastics exhibited an upward trend.
• The production of Lead has increased by 38% to 20,692 MT on YoY basis.
• The sale of Lead has increased by 46% to 20,699 MT on YoY basis.
• There is a significant increase in production and sales of Plastics as well on both QoQ and YoY basis.
• Realization per ton of Lead and Plastics showed a positive trend.
• EBITDA per Ton of Lead increased by 4% YoY basis.

Q1FY25 Strategic Updates

• TARGET 2030 – POCL has laid a clear target which includes capacity expansion of existing verticals (Lead) and diversification into new verticals (Lithium-ion); having Volume Growth 15%+; Revenue CAGR and Profitability Growth of 20%+; EBITDA Margins 8%+; ROCE 20%+; Value-added Products 60%+; 20%+ Reduction in Energy
  Consumption to reduce Carbon Footprints.
• Expansion of Thervoykandigai Project – POCL is expanding its lead production capacity in its plant, located in Thervoykandigai. The first phase of this project is planned to achieve a capacity of 36,000 MT per annum and then increase to 72,000 MT per annum in the second phase. The estimated CAPEX for Phase 1 is INR 70
  Crores and will be funded through proceeds of preferential issue and internal accruals. Construction of Building, erection of plant & machinery is in progress and is expected to be completed for trials by Dec-24 and production to commence from Jan-25.
• R&D Projects: POCL is looking at setting up R&D Facilities for the creation of value-added products both for the current portfolio and for feasible products which will add overall value to the top and bottom line of the Company.
• CAPEX: POCL has invested INR 30 Cr in Capex during Q1FY25 and plans to spend an additional approximately INR 50 Cr in remaining months of FY25.

Management Comments

Mr. Ashish Bansal, Managing Director:

“I am delighted to share that POCL has delivered strong results for Q1FY25 on both financial and operational front and has set the tone for the year with an optimistic start. Revenue, EBITDA and PAT showed a significant growth driven by robust operational performance and lower finance costs. The factors driving our growth include capacity expansion, a
comprehensive capital expenditure strategy, improved operational efficiencies, a strong balance sheet, strict implementation of government norms like BWMR and EPR, adept management, and robust stakeholder support, all contributing to a positive outlook for POCL’s development. I am confident that with sustained stakeholder support, POCL will reach its TARGET 2030.”

About Pondy Oxides and Chemicals Limited
POCL is India’s leading recycling and manufacturing company and a pioneer in Lead and Lead Alloys. It was incorporated in March 1995 as a Public limited company by dynamic Entrepreneurs and is listed on the Bombay Stock Exchange and National Stock Exchange of India Limited. Since its inception POCL has been growing year on year basis and has established its brand image in the domestic and international markets. POCL is the India’s first 3N7 London Metal Exchange (LME) Registered Lead brand.

POCL has a diverse procurement base and a customer network in India and across the globe. It has brand approvals from all the major battery manufacturers, a diverse portfolio in customized alloys, extensive Land Bank, and advantage of strategic locations with respect to proximity to ports. Currently POCL is in the process of expanding its capacity in Lead, Lead Alloys, and other non-ferrous metals. POCL is committed to adding value for every stakeholder by consistently enhancing its processes, investing in new machinery, and upgrading technology to meet international standards.