Pondy Oxides

Pondy Oxides is one of India's leading metallic oxides and plastic additives producers. It has broad based operations, manufacturing of Zinc oxide, Lead sub Oxide, Litharge Red lead and solid and liquid stabilizers of PVC.  These products are used in battery industries and automobile sector. The company has an around 30% market share in the plastics additives segment. Thanks to cost management, especially on the employee front and other expenses, the company could end Q1FY16 on a much higher note. To begin with, net sales for the quarter was down 3% (YoY) at Rs.109 crore but the company reduced total costs by 5%, especially employee costs which were down 36% and other expenses, down 56%. This helped boost the EBITDA which came in 39% higher at Rs.6 crore and margins improved vastly from 4.12% to 5.95%. Net profit for the quarter came in at Rs.3 crore, up 50%.

The company demerged 4 of its units in Dec’14 and in the scheme of arrangement during the equity capital of the company stands reduced from earlier Rs.11.15 crore to Rs.5.58 crore. EPS is at Rs.5.04 (face value Rs.10/share). Promoters stake is at 52% and neither any FII nor DI hold any stake. Market cap stands at Rs.63 crore.