POCL Enterprises Sets Sights on Additional ₹200 Crore Revenue Through Expansion

POCL Enterprises Ltd has announced plans to relocate a plant from Maraimalai Nagar, near Chennai, to Puducherry. The freed-up space will be utilized for expanding capacities for lead smelting and refining, each capable of handling 11,000 tonnes a year.

In a notification to the stock exchanges, the Chennai-based company, formerly known as Pondy Oxides Chemicals Ltd, stated that the capacity expansion aims to meet growing demand, handle larger contracts, and generate an additional revenue of ₹200 crore annually.

The company, a recycler of non-ferrous metals like lead and zinc, reported a turnover of ₹874.36 crore and a net profit of ₹12.89 crore in the fiscal year 2023-24. In the quarter ended September, it recorded a turnover of ₹339.13 crore and a net profit of ₹3.31 crore.

"With the installation of new rotary furnaces, pollution control equipment, and substantial capacity enhancement, we anticipate a 2% increase in margins due to higher production efficiency and economies of scale," stated the company.

The project is expected to involve an overall investment outlay of approximately ₹5.22 crore, with commercial production slated to commence in Q1 of FY 2024-25.

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

In its credit rating assessment conducted in July 2023, CARE noted the promising prospects of the industry, citing the growing scrap metal recycling market and the increasing demand for lead-acid batteries for energy storage. The implementation of the Battery Waste Management Rules, 2022, by the Government of India is also expected to drive growth in the battery recycling industry.

HBL