Pondy Oxides And Chemicals (532626) Q2 24/25 earnings summary

Executive summary

• Achieved significant growth in Q2 and H1FY25, with revenue, EBITDA, and PAT up sharply year-over-year, driven by increased production and sales in Lead, Plastics, and Copper, and reduced finance costs.

• Board approved unaudited standalone and consolidated financial results for the quarter and half year ended September 30, 2024, with statutory auditor review completed.

• Strategic capacity expansions, capex investments, and regulatory tailwinds are supporting robust operational and financial performance.

• Operations continue to be reported under a single segment: lead and lead alloys, as other segments do not meet reporting thresholds.

Financial highlights

• H1FY25 consolidated revenue rose 42% YoY to Rs. 1,024 Cr; EBITDA up 75%, PAT up 188%.

• Q2FY25 standalone revenue at Rs. 5,724 Mn, up 46% YoY; EBITDA at Rs. 300 Mn (5.2% margin), PAT at Rs. 174 Mn (3.0% margin).

• Standalone revenue from operations for Q2 FY25 was ₹57,243.29 lakhs, up from ₹43,677.63 lakhs in Q2 FY24; consolidated revenue was ₹57,910.86 lakhs, up from ₹44,493.80 lakhs year-over-year.

• Standalone net profit for Q2 FY25 was ₹1,739.16 lakhs, up from ₹1,452.67 lakhs in Q2 FY24; consolidated net profit was ₹1,525.68 lakhs, up from ₹1,295.75 lakhs year-over-year.

• EPS (diluted) for H1FY25 at Rs. 24, up 89% YoY.

Outlook and guidance

• Targeting 15%+ volume growth, 20%+ revenue CAGR, EBITDA margins over 8%, ROCE above 20%, and over 60% of revenue from value-added products by 2030.

• Ongoing capacity expansion in Lead (additional 36,000 MTPA to commence Jan'25) and plans for further verticals including Lithium-ion.

• Focus on reducing energy consumption by 20% and increasing renewable power usage to 50%.

• Continued focus on core segment and capital structure improvement indicated by warrant conversion.