Pondy Oxides locked in 5% upper circuit after posting strong Q2 results

Pondy Oxides and Chemicals posted a 168.4 per cent Y-o-Y rise in Q2 net profit at Rs 15 crore

Pondy Oxides and Chemicals shares were locked in a 5 per cent upper circuit in trade on Thursday and registered an intraday high of Rs 1,117.2 per share on BSE after the company reported strong growth in its Q2FY25 results. 

At around 10:56 AM, Pondy Oxides and Chemicals shares were up 5 per cent at Rs 1,117.2 per share on the BSE. In comparison, the BSE Sensex was down 0.35 per cent at 81,214.54 around the same time.

The market capitalisation of the company around the time stood at Rs 2,910.35 crore. 

Pondy Oxides reported a consolidated net profit of Rs 15.3 crore, compared to a consolidated net profit of Rs 5.7 crore in the year ago period, after market hours on Wednesday. This implies an annual growth of 168.4 per cent. The company's revenue from operations increased by 46 per cent Y-o-Y to Rs 579.10 crore, compared to Rs 396.82 crore in the year-ago period. 

As per the company's exchange filing, it experienced substantial growth in revenues on the back of increased production and sales in lead, plastics and copper.

Pondy Oxides' consolidated earnings before interest, tax, depreciation, and amortisation (Ebitda) increased by 75 per cent Y-o-Y to Rs 53 crore, compared to Rs 29 crore earlier. Meanwhile, Ebitda margins for the quarter stood at 5 per cent, and 4 per cent for H1FY24.

The production of lead in the H1FY25 period increased by 50 per cent Y-o-Y to 46,855 metric tonne (MT) and by 61 per cent Y-o-Y to 26,108 MT on a quarterly basis. 

The sales of lead also increased by 47 per cent Y-o-Y to 45,959 MT on a half-yearly basis and 49 per cent Y-o-Y to 25,294 MT on a quarterly basis. 

On a quarterly basis, Ebitda per tonne of lead increased to Rs 12,304 per tonne, up 18 per cent Q-o-Q and 4 per cent Y-o-Y.

In the past one year, Pondy Oxides shares have gained 361 per cent, compared to the BSE Sensex's rise of 23 per cent during the same period.