{"id":163288,"date":"2024-07-26T04:46:10","date_gmt":"2024-07-26T08:46:10","guid":{"rendered":"https:\/\/44.250.171.167\/?p=163288"},"modified":"2024-07-26T04:46:11","modified_gmt":"2024-07-26T08:46:11","slug":"pocl-delivers-stellar-performance-charts-aggressive-growth-course","status":"publish","type":"post","link":"https:\/\/alphastreet.com\/india\/pocl-delivers-stellar-performance-charts-aggressive-growth-course\/","title":{"rendered":"POCL Delivers Stellar Performance, Charts Aggressive Growth Course"},"content":{"rendered":"<p>Pondy Oxides &amp; Chemicals Ltd (POCL) reported impressive financial performance with a 37% YoY revenue increase and a staggering 216% YoY jump in PAT. POCL is making significant strides in the recycling industry, as discussed in their recent earnings call. The company is embarking on a strategic expansion, increasing lead production capacity by 55% and establishing new facilities in Tamil Nadu and Gujarat. POCL&#8217;s operational excellence is evident with a 38% reduction in finance costs YoY and substantial growth in lead production and sales.<\/p>\n<p>The company is diversifying into plastics recycling with impressive QoQ growth and exploring value-added aluminum alloys. Financially, POCL aims to boost its EBITDA margin from 5-6% to 7-7.5% over the next three years while targeting a 20% return on capital employed.<\/p>\n<p>With a balanced approach to domestic and export markets, POCL is well-positioned to capitalize on the growing circular economy trends and upcoming regulatory opportunities in EPR (Extended Producer Responsibility). This multifaceted strategy underscores POCL&#8217;s commitment to sustainability and operational efficiency in the evolving recycling landscape.<\/p>\n<p><strong>Key Takeaways :<\/strong><\/p>\n<ul>\n<li><strong>Strategic Capacity Expansion<\/strong>\n<ul>\n<li>Increasing lead production capacity by 55% (132,000 to 204,000 metric tons)<\/li>\n<li>Expanding lead production capacity with new plant commissioning in phases<\/li>\n<li>New facility in Thervoykandigai, Tamil Nadu, production starting Q4 2025<\/li>\n<li>Funded through preferential issue and internal accruals<\/li>\n<li>Smelting capacity to double from 80,000 to 160,000 metric tons<\/li>\n<\/ul>\n<\/li>\n<li><strong>Operational Efficiency<\/strong>\n<ul>\n<li>38% reduction in finance costs YoY<\/li>\n<li>Lead production up 38%, sales up 46% YoY<\/li>\n<li>Consistent 60% share of value-added products in lead segment<\/li>\n<li>Focus on backward integration to improve margins<\/li>\n<li>Moving towards more battery recycling vs. direct refining of lead scrap<\/li>\n<\/ul>\n<\/li>\n<li><strong>Geographical Expansions<\/strong>\n<ul>\n<li>123-acre land acquisition in Mundra, Gujarat<\/li>\n<li>Proximity to port offers cost efficiencies in imports\/exports<\/li>\n<li>Positions POCL to tap Western regions and international markets<\/li>\n<li>60-65% of exports directed to East Asian countries<\/li>\n<\/ul>\n<\/li>\n<li><strong>Financial\/Operational Targets<\/strong>\n<ul>\n<li>Targeting overall EBITDA margin increase from 5-6% to 7-7.5% over next 3 years<\/li>\n<li>Targeting 60%+ share of value-added products<\/li>\n<li>Projected 15% volume growth in coming years<\/li>\n<li>Targeting 20% return on capital employed<\/li>\n<li>Exploring forward integration opportunities in aluminum<\/li>\n<li>Compounding segment target margins at 12-14%<\/li>\n<li>Lead business margin expected to improve by 120-150 bp<\/li>\n<\/ul>\n<\/li>\n<li><strong>Diversification to Plastics Recycling<\/strong>\n<ul>\n<li>47% QoQ growth in plastics segment<\/li>\n<li>Current plastics recycling margins at 6-8%<\/li>\n<li>Expanding from recycled to compounded products (C080, filler grades, nylon, ABS)<\/li>\n<li>On track for INR50 crore revenue target in plastics<\/li>\n<\/ul>\n<\/li>\n<li><strong>Strong Partnerships<\/strong>\n<ul>\n<li>25-30% of domestic sales attributed to major customer Amara Raja<\/li>\n<li>Renewed contracts despite Amara Raja&#8217;s backward integration<\/li>\n<li>Potential for increased alloy sales as Amara Raja focuses on pure lead production<\/li>\n<li>Top 5 customers constitute 40-50% of total revenue<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>Pondy Oxides &amp; Chemicals Ltd (POCL) reported impressive financial performance with a 37% YoY revenue increase and a staggering 216% YoY jump in PAT. POCL is making significant strides in the recycling industry, as discussed in their recent earnings call. The company is embarking on a strategic expansion, increasing lead production capacity by 55% and [&hellip;]<\/p>\n","protected":false},"author":1767,"featured_media":0,"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":[392,5753,5],"tags":[9854,10169,9847,10010],"class_list":["post-163288","post","type-post","status-publish","format-standard","hentry","category-earnings","category-industrials","category-latest","tag-copper","tag-earnings","tag-lead-alloys","tag-lead-smelting-company"],"jetpack_publicize_connections":[],"jetpack_featured_media_url":"","jetpack_likes_enabled":false,"jetpack-related-posts":[{"id":163232,"url":"https:\/\/alphastreet.com\/india\/pondy-oxides-and-chemicals-q1fy25-revenues-ebitda-and-pat-up-37-76-and-216-2\/","url_meta":{"origin":163288,"position":0},"title":"POCL reported a 76% rise in EBITDA, and a 216% jump in PAT in Q1FY25.","author":"Chirag Gupta","date":"July 22, 2024","format":false,"excerpt":"Pondy Oxides and Chemicals Limited (BSE Code \u2013 532626; NSE Code \u2013 POCL), India\u2019s 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.,\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\/2024\/07\/d9c6f6d3-e412-403b-809b-57a386da9614.png?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2024\/07\/d9c6f6d3-e412-403b-809b-57a386da9614.png?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2024\/07\/d9c6f6d3-e412-403b-809b-57a386da9614.png?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2024\/07\/d9c6f6d3-e412-403b-809b-57a386da9614.png?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2024\/07\/d9c6f6d3-e412-403b-809b-57a386da9614.png?resize=1050%2C600&ssl=1 3x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2024\/07\/d9c6f6d3-e412-403b-809b-57a386da9614.png?resize=1400%2C800&ssl=1 4x"},"classes":[]},{"id":163228,"url":"https:\/\/alphastreet.com\/india\/pondy-oxides-and-chemicals-q1fy25-revenues-ebitda-and-pat-up-37-76-and-216\/","url_meta":{"origin":163288,"position":1},"title":"Pondy Oxides and Chemicals Q1FY25 Revenues, EBITDA and PAT up 37%, 76% and 216%","author":"Staff Correspondent","date":"July 22, 2024","format":false,"excerpt":"Pondy Oxides and Chemicals Limited (BSE Code \u2013 532626; NSE Code - POCL), India\u2019s 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.,\u2026","rel":"","context":"In &quot;Earnings&quot;","block_context":{"text":"Earnings","link":"https:\/\/alphastreet.com\/india\/category\/earnings\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2022\/09\/Pondy-Oxides-and-Chemicals-Limited-4.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2022\/09\/Pondy-Oxides-and-Chemicals-Limited-4.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2022\/09\/Pondy-Oxides-and-Chemicals-Limited-4.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2022\/09\/Pondy-Oxides-and-Chemicals-Limited-4.jpg?resize=700%2C400&ssl=1 2x"},"classes":[]},{"id":127199,"url":"https:\/\/alphastreet.com\/india\/pondy-oxides-and-chemicals-limited-reports-its-q3-earnings-results\/","url_meta":{"origin":163288,"position":2},"title":"PONDY OXIDES AND CHEMICALS LIMITED reports its Q3 earnings results","author":"Nishad","date":"February 9, 2022","format":false,"excerpt":"PONDY OXIDES AND CHEMICALS LIMITED (BOM: 532626) reported its third-quarter results for the period ended 31st December 2021. 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":133091,"url":"https:\/\/alphastreet.com\/india\/pondy-oxides-and-chemicals-ltd-q1-fy23-earnings-conference-call-insights\/","url_meta":{"origin":163288,"position":3},"title":"Pondy Oxides and Chemicals Ltd Q1 FY23 Earnings Conference Call Insights","author":"Praveen","date":"August 15, 2022","format":false,"excerpt":"https:\/\/youtu.be\/ik9jU2OccCc Key highlights from Pondy Oxides and Chemicals Ltd (532626) Q1 FY23 Earnings Concall Management Update: POCL said that to counter macroeconomic forces, its core focus going forward will be on portfolio diversification in non-ferrous metals and other recycling materials in the upcoming quarters. POCL expects its growth in volumes\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\/2021\/11\/Earnings-Coverage.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2021\/11\/Earnings-Coverage.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2021\/11\/Earnings-Coverage.jpg?resize=525%2C300&ssl=1 1.5x"},"classes":[]},{"id":139687,"url":"https:\/\/alphastreet.com\/india\/pondy-oxides-and-chemicals-ltd-q3-fy23-earnings-conference-call-insights\/","url_meta":{"origin":163288,"position":4},"title":"Pondy Oxides and Chemicals Ltd Q3 FY23 Earnings Conference Call Insights","author":"Praveen","date":"February 1, 2023","format":false,"excerpt":"https:\/\/youtu.be\/XcWVyR2YnNo Key highlights from Pondy Oxides and Chemicals Ltd (532626) Q3 FY23 Earnings Concall Management Update: [00:07:52]POCL said that during 3Q23, aluminum production was commenced, as well as trial production in plastics. [00:09:42] The company said it was also awarded the order to take over Harsha Exito Engineering Pvt. Ltd.,\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\/2021\/11\/Earnings-Coverage.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2021\/11\/Earnings-Coverage.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2021\/11\/Earnings-Coverage.jpg?resize=525%2C300&ssl=1 1.5x"},"classes":[]},{"id":154407,"url":"https:\/\/alphastreet.com\/india\/pondy-oxides-and-chemicals-ltd-q1-fy24-earnings-conference-call-insights\/","url_meta":{"origin":163288,"position":5},"title":"Pondy Oxides and Chemicals Ltd Q1 FY24 Earnings Conference Call Insights","author":"Praveen","date":"August 21, 2023","format":false,"excerpt":"Key highlights from Pondy Oxides and Chemicals Ltd (532626) Q1 FY24 Earnings Concall Management Update: [00:02:22] The company expects the momentum in sales to continue in the near future backed by customer's orders. [00:04:12] The management has taken a decision to its non-ferrous metal operation in the Harsha Exito unit\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":"Earnings Update by AlphaStreet","src":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2019\/02\/Earnings-Coverage-1280.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2019\/02\/Earnings-Coverage-1280.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2019\/02\/Earnings-Coverage-1280.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2019\/02\/Earnings-Coverage-1280.jpg?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2019\/02\/Earnings-Coverage-1280.jpg?resize=1050%2C600&ssl=1 3x"},"classes":[]}],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/posts\/163288","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/users\/1767"}],"replies":[{"embeddable":true,"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/comments?post=163288"}],"version-history":[{"count":0,"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/posts\/163288\/revisions"}],"wp:attachment":[{"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/media?parent=163288"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/categories?post=163288"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/tags?post=163288"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}