POCL's Sustainable Expansion Plan Targets ₹200 Crore Revenue

POCL Enterprises Ltd has revealed plans to transfer its facility from Maraimalai Nagar, near Chennai, to Puducherry. This move will enable the company to repurpose the existing space for the expansion of lead smelting and refining capacities, each capable of processing 11,000 tonnes annually.

In a disclosure to the stock exchanges, the Chennai-headquartered company, formerly known as Pondy Oxides Chemicals Ltd, outlined that the capacity augmentation initiative aims to cater to burgeoning demand, facilitate larger contracts, and generate an additional annual revenue of ₹200 crore.

Specializing in recycling non-ferrous metals like lead and zinc, the company reported a turnover of ₹874.36 crore and a net profit of ₹12.89 crore for the fiscal year 2023-24. For the quarter ending in September, it recorded a turnover of ₹339.13 crore and a net profit of ₹3.31 crore.

"We anticipate a 2% increase in margins attributable to enhanced production efficiency and economies of scale, facilitated by the installation of new rotary furnaces, pollution control equipment, and substantial capacity expansion," remarked the company.

The project is estimated to require an overall investment of approximately ₹5.22 crore, with commercial production slated to commence in the first quarter of FY 2024-25.

Shares of POCL Enterprises closed at ₹329.95 on the Bombay Stock Exchange (BSE) on Tuesday, reflecting a 6.44% increase compared to the previous close.

In its credit rating evaluation conducted in July 2023, CARE underscored the favorable outlook for the industry, citing the burgeoning scrap metal recycling market and the escalating demand for lead-acid batteries for energy storage. The anticipated growth in the battery recycling industry is further bolstered by the implementation of the Battery Waste Management Rules, 2022, by the Gove

News By Rahul Yelligetti