The Board reviewed progress on the new 72,000 MT/year automated Lead Smelter Plant in Thervoykandigai, Tamil Nadu.
Erection is nearly complete, with trial production for the first 36,000 MT/year phase set to begin in early March 2025.
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Outstanding Q1 results delivered by this company. The qtrly revenues have crossed Rs 600 Cr and NP has crossed Rs 20 Cr for the first time in company history. This has been possible as the Phase 1 of Lead capex has commenced commercial production and work is in progress for Phase 2 of capex . This phase 2 of capex will be over in second half of current FY.
The press release is attached .
Pondy Oxide.pdf (987.4 KB)
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Q1FY26 concall was good for Pondy Oxides
- Interestingly due to focus on VAP and oper efficiencies POCL did well wrt margins. Record ebitda and Pat
- Capex ph 1 contributing and ph 2 commissioning in H2
- Margin will remain above 7% - some folks asked them that they can do more margins and they said they are being conservative.
- Small acquisitions are not the way to go as furnaces already setup bring in oper efficiencies and smaller acquisition will dilute all that.
- Aluminium hedging on MCX will bring down the volatility for POCL
- 71% of lead sales was VAP and Lead is the main driver for them
- Copper prod has doubled + order visibility is there
- Plastics will turn ebitda +ve once they restructure this and incl in own premises.
- ebitda/ton can sustain b/w 11k to 12k
- regulatory/scrap import/metal volatility are risks here to some extent.
- Ques on sourcing scrap was raised as they grow it could be a hassle as most of the scrap is imported.
- EPR credit collection is going on - once penalties are levied on Producers then it would be a good time to sell credits as per management. Witty.
- In lead they have advanced tech which gives them competitive advantage.
one can listen to baheti recycling concall to get an idea on how they achieved oper efficiencies - guessing its mostly around furnaces/smelting
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