Pondy Oxides & Chemicals Ltd. · NSE:POCL
Pondy Oxides & Chemicals — Q1 FY2025 Earnings Presentation
39 slides from Pondy Oxides & Chemicals's earnings presentation, Jul 24, 2024
Slide 1: Investor Presentation Filing Letter to NSE and BSE
PONDY OXIDES AND CHEMICALS LIMITED POCL® 24th July 2024 National Stock Exchange of India Ltd BSE Limited Exchange Plaza, 5th Floor, Corporate Relationship Department, Plot No. CIl, G Block, Phiroze Jeejeebhoy Towers, Bandra Kurla Complex, Bandra (E), Dalal Street, Mumbai - 400 051 Mumbai - 400001 NS
Slide 2: Pondy Oxides and Chemicals Limited Q1FY25 Investor Presentation
The Urban Miners PONDY OXIDES AND CHEMICALS LIMITED Q1FY25 Investor Presentation July’2024 1
Slide 3: Disclaimer
Disclaimer The Urban Miners This presentation and the accompanying slides (the “Presentation”), which have been prepared by Pondy Oxides and Chemicals Limited (the “Company”) solely for the information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe fo
Slide 4: Table of Contents
Table of Contents The Urban Miners 1 Management Commentary 04 2 Company Overview 05 - 11 3 Q1FY25 Performance Highlights 12 - 15 4 Investment Thesis 16 - 32 5 Annexure 33 - 37 3
Slide 5: Management Commentary & Business Outlook
Management Commentary & Business Outlook The Urban Miners “I am delighted to share that POCL has delivered strong results for Q1FY25 on both financial and operational front and has set the tone for the year with a positive momentum. Revenue, EBITDA and PAT showed a significant growth driven by robus
Slide 6: Company Overview
Company Overview 5
Slide 7: Responsible Growth, Sustainable Progress
Responsible Growth, Sustainable Progress The Urban Miners Vision Core Values Current Business Verticals To be the most valuable recycling Excellence Lead company in the world adopting Responsibility Plastics responsible and sustainable Integrity Copper manufacturing practices Learning & Innovation A
Slide 8: Business at a Glance
Business at a Glance The Urban Miners 4 Recycling Verticals 20+ Export Destinations 28+ Years of Experience 15% - 10 Years Revenue CAGR India’s First 3N7 LME Registered Lead Brand 15% - 10 Years EBITDA CAGR 140K + MT Scrap Recycled p.a. Increasing Capacities with technological upgradation and automa
Slide 9: POCL Forte and Industry Vantage Point
POCL Forte and Industry Vantage Point The Urban Miners Extensive Land Bank of 170+ Acres located strategically Licensing and time-bound with proximity to major Operational Excellence & compliances Indian ports Expansion of Capacities Risk Mitigation through International business, strategic hedging
Slide 10: Our Journey
Our Journey The Urban Miners 2006 2015 2019 2021 2023 Inaugurated First Lead Set up Smelter Division – 1st Indian 99.97 Lead Lead Capacity Expansion Acquisition of Harsha Smelter Division (SMD) - I II: 24KTPA in Andhra Brand registered on to 132KTPA Exito, Tamil Nadu for 18KTPA in Tamil Nadu Pradesh
Slide 11: Leveraging Diverse Recycling Verticals
Leveraging Diverse Recycling Verticals The Urban Miners LEAD PLASTICS COPPER ALUMINIUM Finished Goods Capacity Capacity 9,000 MTPA Capacity 6,000 MTPA Capacity 12,000 MTPA 1,32,000 MTPA Procurement Split: 85% Procurement Split: 50% Procurement Split: 95% Procurement Split: 100% Imports; 15% Domestic
Slide 12: Business Model: Sustainable Circularity
Business Model: Sustainable Circularity The Urban Miners Customer Feedback Sorting & Segregation Value Added Products and R&D Constant feedback from Scrap of different Lead Alloys, Tin Alloys, Customers and Continuous materials is sorted and Copper & Aluminium R&D enable us to become classified basi
Slide 13: Q1FY25 Performance Highlights
Q1FY25 Performance Highlights
Slide 14: Strategic Updates
Strategic Updates The Urban Miners Increase in Production Strategic Capex of INR 30 Cr. done in and sales of Lead and Updates Q1FY25; INR 50 Cr. (approx.) Plastics is expected to be done in remaining months of FY25 Capacity expansion of Plans to establish R&D Phase 1 of Lead by 32,000 facilities to
Slide 15: Standalone Operational Highlights
Strong Financial and Operational Performance The Urban Miners Revenue (Rs. Mn) EBITDA (Rs. Mn) & Margin (%) PAT (Rs. Mn) & PAT Margin (%) 4.4% Financial Highlights 5.4% 1.9% 3.3% 4,368 Standalone 237 145 3,206 140 60 Q1FY24 Q1FY25 Q1FY24 Q1FY25 Q1FY24 Q1FY25 Lead Production (MT) Lead Sales (MT) Lead
Slide 16: Detailed Income Statement (Standalone)
Detailed Income Statement (Standalone) The Urban Miners Particulars (Rs. Million) Q1FY25 Q1FY24 YoY Q4FY24 QoQ Net Revenue 4,368 3,206 36% 3,568 22% Other Income 11 9 25% 21 -48% Total Income 4,379 3,215 36% 3,589 22% COGS 3,908 2,873 36% 3,147 24% Employee Benefit Expenses 61 59 4% 58 5% Other Expe
Slide 17: Investment Thesis
Pondy Oxides and Chemicals Limited MANUFACTURING LOCALLY EXCELLING We export 60% of our production to the Middle-East, | nve st m e n t Th es i S South Korea, Japan, Thailand, Indonesia, USA & Europe
Slide 18: Investment Thesis
Investment Thesis The Urban Miners Strategic Organization 1 Procurement Strengths 6 Structure 2 Strong Procurement Network Existing Portfolio & 7 & Global Customer Base Futuristic Roadmap Robust Manufacturing 3 8 Target 2030 Facilities 4 Strong Financial & 9 Levers for Strong Growth Operational Perf
Slide 19: Our Procurement Strengths
Our Procurement Strengths Multi-Sourcing strategy The Urban Miners – Procured RM from over 70+ Countries Long term association with Suppliers assures 270+ Overseas Suppliers uninterrupted supplies Strong procurement Strong systems backed team with Global up by tailor made reach software Well defined
Slide 20: Strong Procurement Network & Global Customer Base
Strong Procurement Network & Global Customer Base The Urban Miners Transforming Waste into Opportunity 19
Slide 21: Supply Chain Strength: Recognizing Valued Suppliers
Supply Chain Strength: Recognizing Valued Suppliers The Urban Miners 20
Slide 22: Key Client Connections: Driving Mutual Success
Key Client Connections: Driving Mutual Success The Urban Miners Thai Energy Storage PT Trimitra Baterai Prakasa …. And Others 21
Slide 23: Robust Manufacturing Facilities
Robust Manufacturing Facilities The Urban Miners Strategically located units with proximity to ports In line with our strategic expansion Technologically equipped efficient manufacturing units to plans aimed at establishing and process the scraps, to recycle and manufacture high- expanding facilitie
Slide 24: Charting Success: Financial Highlights (1/2)
Charting Success: Financial Highlights (1/2) The Urban Miners Revenue from Operations Gross Profit & Margin (%) EBITDA & Margin (%) 14,548 14,717 15,238 2,000 11.0% 900 14.0% 5.7% 11.8% 5.6% 5.1% 1,800 11.2% 800 12.0% 1,600 700 1,400 10.0% 10,043 600 1,200 7.2% 8.0% 500 1,000 400 2.7% 820 841 800 1,
Slide 25: Balance Sheet Strength – Financial Highlights (2/2)
Balance Sheet Strength – Financial Highlights (2/2) The Urban Miners Net Debt (Rs. Mn) Net Working Capital Days 63 56 58 37 55 35 34 33 30 1,370 1,369 25 24 23 1,017 646 2 2 2 2 FY21 FY22 FY23 FY24 FY21 FY22 FY23 FY24 Receivable Days Inventory Days Payable Days Interest Coverage Ratio (x) Net Debt t
Slide 26: Robust Operational Performance
Robust Operational Performance The Urban Miners Lead Capacity (MTPA) Lead Production (MT) 132,000 132,000 132,000 132,000 120,000 73,624 77,282 75,078 68,910 60,283 FY20 FY21 FY22 FY23 FY24 FY20 FY21 FY22 FY23 FY24 Lead Sales (MT) EBITDA per Ton (Rs. per Ton) 71,931 13,039 12,941 68,322 70,338 68,55
Slide 27: Value Added & Customized Products Portfolio
Value Added & Customized Products Portfolio The Urban Miners Lead Plastics Copper Aluminium Clove Cobra Mill Berry Pure Lead Industrial & Engineering Lead Calcium Alloys Plastic Granules: Lead Tin Alloys PPCP Grease Lead Antimony Alloys ABS Mill Berry ADC Series (JIS Standard) Lead Master Alloys HDP
Slide 28: Corporate Structure
Strategic Organization Structure The Urban Miners Functional Departmental Managers Corporate Structure Board of Directors Plant Functional Managers Senior Management Divisional Executives Well defined corporate structure with defined roles and responsibilities for Organization's Human Resources Rede
Slide 29: Portfolio and Futuristic Road Map
Portfolio and Futuristic Road Map The Urban Miners Current Portfolio Lead Copper Plastics Aluminium Execution Lead Capacity Exploration Expansion by R&D Centres Post expansion Lead additional Strategic JVs Capacity to become 72,000 MT p.a. 204,000 MT p.a. Pre Feasibility Feasibility Rubber Lithium I
Slide 30: Target 2030
Target 2030 The Urban Miners Diversified Portfolio with Forward Integration & Additional Verticals: Value Added Products 15 % + Capacity Expansions - Volume Growth Lead Lithium Ion 20 % + ROCE 20% + Revenue CAGR 8%+ EBITDA Margins 20% + Profitability Growth 60%+ Value Added Products 50% + Renewable
Slide 31: Levers for Strong Growth Outlook
Levers for Strong Growth Outlook The Urban Miners Capacity Expansion of existing verticals & diversifying 1 further into new verticals- Lithium-ion and Forward Integration Strong Capex plan in place funded by ideal 2 mix of debt, equity and internal accruals Strict Government Norms of BWMR & EPR to
Slide 32: Focus on ESG
Focus on ESG The Urban Miners Environment Social Corporate Governance o Substitution of Fuel from Furnace Oil o Employee Well-Being – Employee o Board Composition – 50% to LNG to reduce carbon footprint safety & well-being programs Independent Directors o Air & Water Pollution Mitigation is implemen
Slide 33: ESG Roadmap
ESG Roadmap The Urban Miners Recycling Portfolio FG: Societal Impact: Corporate Governance: Lead: 132 KTPA Sustainable Business OHSAS, 100% Health Insurance Code of Conduct and Ethics Plastics: 9 KPTA Coverage, Employee Manual, Compliances, Practices Copper: 6 KTPA Engagement and Grievance Accountab
Slide 34: Annexures
Annexures POCL recycles me conserve energy that would otherwise be expended in the metal manufacturing process #ChangingTheFate
Slide 35: Robust Management & focus on HR Assets
Robust Management & focus on HR Assets The Urban Miners 24+ Years of average management Employee well being experience in diverse programs industries Anil Kumar Bansal Ashish Bansal K. Kumaravel 500+ Employees Diversity & Inclusion Chairman & Managing Director Director - Finance Whole Time Director
Slide 36: Yearly Trends | Income Statement
Yearly Trends | Income Statement The Urban Miners Particulars (Rs. Million) FY 2024 FY 2023 FY 2022 FY 2021 FY 2020 FY 2019 Net Revenue 15,238 14,717 14,548 10,043 12,199 10,489 Other Income 46 43 46 33 35 40 Total Income 15,284 14,759 14,594 10,076 12,234 10,529 COGS 13,538 12,987 12,954 9,323 11,2
Slide 37: Yearly Trends | Balance Sheet
Yearly Trends | Balance Sheet The Urban Miners Particulars (Rs. Million) FY 2024 FY 2023 FY 2022 FY 2021 FY 2020 FY 2019 EQUITY AND LIABILITIES Share Capital 126 116 58 58 58 56 Reserve and Surplus 3,422 2,425 2,023 1,555 1,446 1,248 Net Worth 3,548 2,541 2,081 1,613 1,504 1,304 Borrowings 945 1,420
Slide 38: Shareholding Pattern as on 30th June 2024
Shareholding Pattern as on 30th June’2024 The Urban Miners In Crores SYMBOL 532626 POCL Public Promoters LISTED BSE (Main) NSE (Main) MKT CAP (As on 19-07-24) INR 1,156.49 Cr. INR 1,157.37 Cr. 52 WEEK HIGH/LOW INR 1,048.7/ 378 INR 1,048.9 / 377.5 CURRENT MARKET PRICE INR 917.05 INR 917.75 (19-07-202
Slide 39: Thank You
The Urban Miners Thank You Investor Relations Contact: Sana Kapoor Go India Advisors sana@GoIndiaAdvisors.com M:+91 81465 50469 Sheetal Khanduja Go India Advisors sheetal@GoIndiaAdvisors.com M:+91 97693 64166 Company Contact: K. Kumaravel Director – Finance & Company Secretary kk@pocl.com Vijay Bala
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