POCL Powers Up: Kanchipuram Plant Set to Mint ₹2 Billion More Annually

Image Source: Indian Chemical News

POCL Enterprises Limited is set for a major jump in its growth path after important regulatory clearances for its Kanchipuram plant and intentions to add another ₹2 billion in annual revenues. The company, a leading player in the non-ferrous metal and metallic oxides business, sustains its strong financial and operational momentum, supported by robust market performance and increasing production capacity.

Regulatory Approvals and Plant Expansion

POCL Enterprises has gained approval from the Tamil Nadu Pollution Control Board (TNPCB) and hazardous waste licenses for its plant at Kanchipuram, paving the way for enhanced operations.
The regulatory approval allows the company to increase production and diversify products, especially in metals and metallic oxides.

Revenue Growth Outlook

The company estimates that the expansion of the Kanchipuram plant will add another ₹2 billion in revenue every year, a remarkable lift in its top line.
The expansion comes on top of POCL's recent financial performance, where it registered a record net sales and robust profit growth.

Financial Performance Highlights

For FY 2024-25, POCL Enterprises achieved its highest-ever yearly revenue of ₹1,450 crore along with a profit after tax of ₹31.18 crore.
The net sales of the company during Q4 FY25 were ₹372.36 crore, a rise of 21% compared to the year-ago period, while quarterly net profit increased 47.58% to ₹10.52 crore.
Operating margins and export sales have consistently improved, demonstrating strong demand and operational efficiency.

Market and Shareholder Impact

POCL Enterprises' shares have recorded outstanding returns of 50.63% in the last six months and nearly 288% in the last one year, ahead of its sector as well as the overall market indices such as the BSE, NSE and Sensex.
The firm recently recommended a 35% final dividend, which reiterates its focus on shareholder value.

Strategic Sector Position

The metals business, such as lead and zinc products, continues to be the growth driver with 65% revenues contribution in H1 FY25 and 163% growth between FY22 and FY24.

POCL's plan to expand its Kanchipuram plant is aligned with its strategy to take advantage of growing domestic and global demand for non-ferrous metals and metallic oxides.

Sources: Moneycontrol, MarketsMojo, POCL Enterprises Annual Report 2023-24, Screener