Pondy Oxides net profit rises over a percent sequentially in Q2FY23

Pondy Oxides reported a sequential rise in its net profit by over a percent. On a yearly basis, it reported a 22% drop in the net profit from INR 15 crores in Q2FY22 to INR 12 crores in Q2 FY23. This happened on account of 25% fall in the total revenue of the company to INR 300 crores. The company has further managed its expenses very well as cost of raw materials consumed have gone down 23% from the last quarter.

Surprisingly, the interest cost for the company has reduced by over 50% on year resulting in an improvised bottom line. Further, the EPS plummeted by 22% on account of falling revenue, during the same period.

Further, the Board of Directors approved the issue of one Bonus Equity Share for every one Equity Share held by the Equity Shareholders of the Company The Bonus Issue of Equity Shares was approved by the shareholders in their AGM held on September 21, 2022. The “Record Date” was fixed as September 29, 2022 for determining the eligible Shareholders entitled to receive Bonus Shares. Post which the Bonus Equity Shares were allotted on September 30, 2022 and the trading approval for the same was received on October 06, 2022 to commence the trading from October 07, 2022

Lastly, to enhance the company’s portfolio of other non-ferrous metals apart from Lead and Copper, the company has recognized an opportunity to recycle Aluminum. Hence, the company intends to set up an aluminum recycling / melting facility at its existing premises located in Sriperumbudur, Tamil Nadu as part of the expansion strategy for 2022-23 at an estimated total investment on plant and machinery and pollution equipment’s of INR 5 crore.