Concall Notes – Feb 2024
Capex:
Machinery procurement for lead vertical expansion ongoing
Capacity to increase from 1,32,000 to 2,04,000 metric tonnes per annum
Expansion project to be commissioned by September 2024
INR300-500 crores investment planned in proposed projects
Funding structure for capex explained with two phases of capital infusion
Expected asset turnover of 8 times for new plant
New Products:
Plans to set up state-of-the-art recycling and manufacturing plant in Tamil Nadu
Progress on lithium-ion recycling unit at feasibility stage
Expected revenue generation from new plant in H2 of FY 2024-25
Targeting INR150-200 crore turnover from new unit
Margins expected to improve with new plant commissioning
EBITDA margin expected to increase to 7% with new plant
Plans for lithium-ion recycling progressing at R&D stage
Roadmap for future growth includes expanding into other verticals like plastics and aluminum
Plans for lithium-ion recycling unit at advanced R&D stage
Guidance:
Promising growth potential in coming years
Expected additional revenue of INR750 crores per annum
Expected revenue growth in FY 2024-25 to be conservative at INR1,800 crores
Expected revenue growth in FY 2024-25 to be around INR1,700-1,800 crores
Timeline for full utilization of new plant expected within first two quarters of FY 2025-26
Financials:
POCL reported 16% revenue growth in Q3 FY 2023-24
Sales increased by 22% compared to last year
EBITDA levels in lead vertical improved to 6.04%
Optimum current ratio of 1.47 and debt equity ratio of 0.83
Shareholders assented to raising capital of INR133.50 crores
Market Analysis:
Global lead acid battery recycling market growing steadily
Asia Pacific region dominates market share
Focus on exports with 55% of sales from exports
Expecting consolidation in lead recycling industry
Export sales mix to remain around 55% in the foreseeable future
Regulatory Updates:
Plans for EPR and battery waste management rules being evaluated
Updates on green lead manufacturing and EPR registration process provided
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