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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A general query - there’s a separate POCL Enterprises. Any view on that business?
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Pondy declared strong Q2 numbers - good revenue growth and margin expansion too.
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POCL concall bullish
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Any particular reason that the stock is correcting so much in the last one month, fallen by nearly 16%? Fundamentally I am not able to find anything wrong, except for the fact that the valuation is a bit stretched.
have a look please, may be helpful to understand
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I think the issue is drop in MArgin - Q2 concall management said that they will maintain Q2 margins - and in Q3 there is a 1% dip. I dont see any other reason.
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Today’s bulk deal involved promoter selling their 2.94% stake in the company and ICICI Prudential Mutual Fund buying 1.54% stake at the price of 1270 per share. (reference)
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Delhi EV Policy 2026 rolls out allocation of over Rs 1500 crore for scrappage incentives. Scrapping an old ICE vehicle to buy an EV would allow the buyer to receive following amounts in different categories.
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4 wheelers: Rs 1,00,000
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2 wheelers: Rs 10,000
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3 wheelers: Rs 25,000
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N-1 Commercial trucks: Rs 50,000
Besides, the policy also incentivizes direct purchase of EVs with a good amount of subsidies:
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Electric 2 wheelers: Up to Rs 30,000
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Electric 3 wheelers: Up to Rs 50,000
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N-1 Electric trucks (under 3.5 tonnes): Up to Rs 1,00,000
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This is a conversion business operating on EBITDA/ton basis.
Looking at EBIDTA amargin as % of revenue can be misleading as it is a function of commodity price realisations.
Here is how the EBITDA/ton trend looks like for Copper and Lead respectively on a quarterly basis:
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