{"id":158624,"date":"2024-02-09T12:03:42","date_gmt":"2024-02-09T17:03:42","guid":{"rendered":"https:\/\/44.250.171.167\/?p=158624"},"modified":"2024-02-09T12:03:43","modified_gmt":"2024-02-09T17:03:43","slug":"pondy-oxides-and-chemicals-ltd-q3-fy24-earnings-conference-call-insights","status":"publish","type":"post","link":"https:\/\/alphastreet.com\/india\/pondy-oxides-and-chemicals-ltd-q3-fy24-earnings-conference-call-insights\/","title":{"rendered":"Pondy Oxides and Chemicals Ltd Q3 FY24 Earnings Conference Call Insights"},"content":{"rendered":"<p><strong>Key highlights from Pondy Oxides and Chemicals Ltd (POCL) Q3 FY24 Earnings Concall<\/strong><\/p>\n<ul>\n<li><strong>Financial Performance<\/strong>\n<ul>\n<li>Revenue of INR 454 crores, up 16% YoY and 12% QoQ.<\/li>\n<li>YTD revenue of INR 1,168 crores, up 13%.<\/li>\n<li>EBITDA at 6.04% in lead vertical.<\/li>\n<li>Overall EBITDA at 5.4% due to aluminum and expenses.<\/li>\n<li>Current ratio at 1.47 and debt equity at 0.83.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Lead Acid Battery Outlook<\/strong>\n<ul>\n<li>Global market growing steadily at 6% CAGR.<\/li>\n<li>Asia Pacific dominates with over 50% share.<\/li>\n<li>India&#8217;s share increasing year-over-year.<\/li>\n<li>Circular economy driving reuse and recycling.<\/li>\n<li>Overall positive future outlook.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Capacity Expansion<\/strong>\n<ul>\n<li>Increasing lead capacity from 132 KTPA to 204 KTPA.<\/li>\n<li>Acquired facility in Tamil Nadu.<\/li>\n<li>Machinery procurement initiated; installation from June 2024 and commissioning by September 2024.<\/li>\n<li>Looking to significantly expand capacities across business verticals.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Tamil Nadu MoU<\/strong>\n<ul>\n<li>MoU to set up recycling and manufacturing plants for non-ferrous metals, batteries, paper, plastic, rubber.<\/li>\n<li>INR 300-500 crores investment over 5 years.<\/li>\n<li>Additional INR 750 crores revenue in phase 1.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Growth Roadmap<\/strong>\n<ul>\n<li>Expanding lead capacity currently.<\/li>\n<li>Strengthened plastic and aluminum verticals.<\/li>\n<li>Exploring lithium-ion, rubber, paper recycling.<\/li>\n<li>New verticals to progressively add to revenue.<\/li>\n<li>Prudent investments based on feasibility.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Capex Funding<\/strong>\n<ul>\n<li>INR 133.5 crores raised via preferential allotment.<\/li>\n<li>INR 70 crores to be utilized before March 2024 for lead capacity expansion in Tamil Nadu.<\/li>\n<li>Future needs to be assessed based on business scenario.<\/li>\n<li>No debt funding planned currently.<\/li>\n<li>Improved profitability with revenue growth.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Working Capital and Sales Mix<\/strong>\n<ul>\n<li>Working capital of INR 275 crores in Q3 FY24 vs INR 240 crores in Q3 FY23.<\/li>\n<li>Increase due to higher inventory and debtors, driven by aluminum vertical.<\/li>\n<li>Sales mix of 45% domestic, 55% exports currently.<\/li>\n<li>Additional verticals to expand domestic share.<\/li>\n<li>Leveraging diverse product portfolio.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Product Mix<\/strong>\n<ul>\n<li>35% pure lead sales currently.<\/li>\n<li>65% value-added alloy products.<\/li>\n<li>Custom alloys for specific customers.<\/li>\n<li>Similar mix expected going forward.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Growth Outlook<\/strong>\n<ul>\n<li>Current year revenue around INR 1,474 crores.<\/li>\n<li>Next year estimate INR 1,700 &#8211; 1,800 crores.<\/li>\n<li>20% growth potential in FY25, driven by capacity expansion.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Margin Outlook<\/strong>\n<ul>\n<li>Current EBITDA around 6% in lead division.<\/li>\n<li>Expect over 7% in new Tamil Nadu facility.<\/li>\n<li>Overall margins to improve with expansion.<\/li>\n<\/ul>\n<\/li>\n<li><strong>EPR and Battery Rules<\/strong>\n<ul>\n<li>EPR still at nascent stage.<\/li>\n<li>Battery rule registrations ongoing.<\/li>\n<li>Commercial opportunities in 3-6 months.<\/li>\n<li>Software development delays in Tamil Nadu.<\/li>\n<li>Progress expected in 6-9 months.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Lithium-ion Battery Recycling Update<\/strong>\n<ul>\n<li>Currently evaluating techno-commercial feasibility of lithium-ion recycling.<\/li>\n<li>Made some progress on R&amp;D but still at early stages.<\/li>\n<li>Key is to ensure continuous supply\/procurement of used batteries.<\/li>\n<li>Expect to see more developments in next 2-3 years as recycling becomes imperative.<\/li>\n<li>R&amp;D work is advancing to develop recycling tech in preparation for expected growth in this space.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>Key highlights from Pondy Oxides and Chemicals Ltd (POCL) Q3 FY24 Earnings Concall Financial Performance Revenue of INR 454 crores, up 16% YoY and 12% QoQ. YTD revenue of INR 1,168 crores, up 13%. EBITDA at 6.04% in lead vertical. Overall EBITDA at 5.4% due to aluminum and expenses. Current ratio at 1.47 and debt [&hellip;]<\/p>\n","protected":false},"author":1767,"featured_media":154818,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2}},"categories":[9825,392,5753],"tags":[10169,9847,8985],"class_list":["post-158624","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-earnings-call-highlights","category-earnings","category-industrials","tag-earnings","tag-lead-alloys","tag-renewable-plastics"],"jetpack_publicize_connections":[],"jetpack_featured_media_url":"https:\/\/alphastreet.com\/india\/wp-content\/uploads\/2023\/10\/CC_Image_1.jpg","jetpack_likes_enabled":false,"jetpack-related-posts":[{"id":156040,"url":"https:\/\/alphastreet.com\/india\/pondy-oxides-and-chemicals-ltd-q2-fy24-earnings-conference-call-insights\/","url_meta":{"origin":158624,"position":0},"title":"Pondy Oxides and Chemicals Ltd Q2 FY24 Earnings Conference Call Insights","author":"Praveen","date":"November 9, 2023","format":false,"excerpt":"Key highlights from Pondy Oxides and Chemicals Ltd (POCL) Q2 FY24 Earnings Concall Financial Performance Reported total revenue of INR392 crores for Q2 FY24, a 22% increase from INR321 crores last quarter. Revenue from operations increased 31% compared to Q2 FY23. In 1H24, POCL reported sales of INR714 crores, up\u2026","rel":"","context":"In &quot;Concall Highlights&quot;","block_context":{"text":"Concall Highlights","link":"https:\/\/alphastreet.com\/india\/category\/earnings-call-highlights\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/10\/CC_Image_1.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/10\/CC_Image_1.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/10\/CC_Image_1.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/10\/CC_Image_1.jpg?resize=700%2C400&ssl=1 2x"},"classes":[]},{"id":163266,"url":"https:\/\/alphastreet.com\/india\/q1-fy25-earnings-call-summary-strong-performance-and-strategic-expansion-for-pondy-oxides-and-chemicals-limited\/","url_meta":{"origin":158624,"position":1},"title":"Q1 FY25 Earnings Call Summary: Strong Performance and Strategic Expansion for Pondy Oxides and Chemicals Limited","author":"Chirag Gupta","date":"July 25, 2024","format":false,"excerpt":"Pondy Oxides and Chemicals Limited (POCL) is a leading manufacturer and recycler of lead and lead alloys, as well as a significant player in the production of specialty chemicals and plastic additives. 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Q2FY23 Earnings Snapshot","author":"Chirag Gupta","date":"November 14, 2022","format":false,"excerpt":"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. 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POCL reported a total net income of \u20b9414.92 crores with a growth of 42% on a year on year comparison. The company had an EBITDA of INR 25.09 Crores, total net profit\u2026","rel":"","context":"In &quot;AlphaGraphs&quot;","block_context":{"text":"AlphaGraphs","link":"https:\/\/alphastreet.com\/india\/category\/infographics\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2022\/02\/Pondy-Oxides-and-Chemicals-LimitedQ322-1.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2022\/02\/Pondy-Oxides-and-Chemicals-LimitedQ322-1.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2022\/02\/Pondy-Oxides-and-Chemicals-LimitedQ322-1.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2022\/02\/Pondy-Oxides-and-Chemicals-LimitedQ322-1.jpg?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2022\/02\/Pondy-Oxides-and-Chemicals-LimitedQ322-1.jpg?resize=1050%2C600&ssl=1 3x"},"classes":[]},{"id":161667,"url":"https:\/\/alphastreet.com\/india\/pondy-oxides-4-fall-in-fy24-revenues\/","url_meta":{"origin":158624,"position":4},"title":"Pondy Oxides &#038; Chemicals Ltd Q4FY24; 4% fall in FY24 Revenues","author":"Chirag Gupta","date":"May 29, 2024","format":false,"excerpt":"POCL's principal activities are converting Lead Scraps of various forms into Lead Metal and Alloys. 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Poised for Strategic Growth","author":"Chirag Gupta","date":"July 17, 2024","format":false,"excerpt":"Pondy Oxides & Chemicals Ltd. (POCL) has strategically positioned itself for robust growth, evidenced by its recent acquisition of 123 acres of industrial land in Mundra, Gujarat. 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