Pondy Oxides & Chemicals Ltd Management Discussions

ECONOMIC OVERVIEW

The global economy in 2024-25 appeared to stabilise at a low growth rate that impeded economic development, with further headwinds from elevated policy uncertainty and adverse trade policy shifts, geopolitical tensions, persistent inflation, and climate-related natural disasters. The International Monetary Fund (IMF) in its World Economic Outlook (WEO) on 22 nd April 2025 has dropped global GDP projection from 3.3% in 2024 to 2.8% for 2025 and 3% in 2026, down from 3.3% for both years in its January 2025 WEO Update. This is much below the historical (2000-19) average of 3.7%. Global headline inflation is now likely to decline at a slower pace than earlier expectations in January, reaching 4.3% in 2025 and 3.6% in 2026. The recent surge in the tariffs threatens to raise production costs, disrupt global supply chains and amplify financial turbulence. Escalated trade frictions, limited fiscal spaces and inflationary pressures are further straining the multilateral trading system, leaving small and vulnerable economies increasingly marginalised in a fragmented global landscape. Global commerce is being reshaped, with projected trade growth halving from 3.3% in 2024 to 1.6% in 2025 jeopardising progress toward the Sustainable Development Goals. OECDs report on Economic Outlook envisages that a stable policy environment would reduce uncertainty, and agreements that lower tariffs from current levels and more ambitious structural policy reforms could strengthen growth. Accelerated adoption of artificial intelligence technologies could also have significant productivity benefits.

India is projected to remain the fastest-growing large economy for 2025 and 2026, reaffirming its dominance in the global economic landscape. With reforms in infrastructure, innovation, and financial inclusion, India continues to enhance its role as a key driver of global economic activity and the nations GDP is predicted to grow by 6.2% in 2025 and 6.3% in 2026, surpassing several of its international competitors. India is well-positioned to handle the challenges that lie ahead owing to its solid economic fundamentals and well-thought-out government initiatives. Sustainable finance and green initiatives remains prominent and continued emphasis on investments in renewable energy, innovative technologies, and public-private partnerships will propel India towards the 2070 net-zero emissions target. The International Monetary Funds (IMF) forecasts further cement Indias significance in determining the direction of the world economy and reaffirm its resilience.

INDUSTRY STRUCTURE, DEVELOPMENT AND ITS OUTLOOK GLOBAL AND INDIAN SCRAP METAL RECYCLING MARKET

The demand for metal ores and minerals, which are non-renewable natural resources, is increasing on a global scale and across sectors and it is imperative to make efforts towards augmenting supply of metals by developing processes for recovery of metal through recycling. Sustainable consumption and production patterns, which encompass the reuse, refurbishment, and recycling of products, are essential for the preservation of the livelihoods of current and future generations, as envisioned by UNs SDG Goal No 12.

With a projected 41.2% market share in 2025, Asia Pacific leads the worlds scrap metal recycling industry. Strong government initiatives that support recycling and waste management, like the National Non-Ferrous Metal Scrap Recycling Framework, are responsible for this dominance. As a result of their extensive manufacturing and construction activities, nations such as China, India, and Japan produce significant amounts of scrap metal.

The expanding automobile industry and the execution of significant infrastructure projects are fueling the fast expansion of Indias scrap metal recycling market. Local businesses work together with multinational corporations to improve operational efficiency and implement best practices. The market is growing as a result of rising scrap metal prices and environmental concerns. Recycling scrap metal offers a sustainable and financially feasible alternative for obtaining raw materials as the worlds metal production and consumption continue to increase.

The Centre has introduced a roadmap to reduce industrial waste by requiring all new products made from non-ferrous metals to have at least 5% recycled content by fiscal year 2028. This requirement will gradually increase to 10% in 2028-29 and 10% of aluminum, 20% copper, and 25% zinc products by FY31. The programme aims to reduce the nations dependency on primary resources and reduce the negative effects of mining on the environment. The Hazardous and Other Wastes (Management and Transboundary Movement) Second Amendment Rules, 2024, has mandated non-ferrous metal producers to recycle a specified percentage of their products and introducing an extended producer responsibility framework. These rules are expected to significantly impact the environment, promote scrap metal recycling, and create new opportunities and jobs in the recycling sector.

1) LEAD MARKET

Global Lead Production and Prices Overview

According to the recent bulletin published by The International Lead and Zinc Study Group (ILZSG), global lead mine output saw an increase of 1.9% in 2024, reaching about 4.56 Mn tonnes, compared to 4.47 Mn tonnes in 2023. This growth was mainly fueled by increased production in countries like the United States, Bolivia, Bulgaria, Kazakhstan, Peru, Sweden, and Australia. However, there were observed declines in China, Ireland, Portugal, and South Africa. Refined lead output experienced a decrease of 1 .7% in 2024, amounting to around 13.27 Mn tonnes. This decline was primarily due to reduced production in China and Canada. Conversely, production levels rose in Australia, India, Japan, and the Republic of Korea. Global demand for refined lead metal fell by 0.8%, decreasing from 13.09 Mn tonnes in 2023 to approximately 12.98 Mn tonnes in 2024. While demand increased in Brazil, India, South Korea, and Vietnam, it declined in China, Europe, Japan, Turkey, and the United States. Global lead demand remained moderate amid easing inflation, with the IMF forecasting a decline to 4% in 2025, improving real incomes and consumption of lead-intensive goods. However, persistent high interest rates maintained by the Fed and ECB continued to limit investments in key sectors such as automotive.

World Refined Lead Supply and Usage 2020-25

000 tonnes	2020	2021	2022	2023	2024	Jan - Apr		Jan	Feb	Mar	Apr
						2024		2025
Mine Production	4,437	4,552	4,433	4,459	4,555	1,413	1,432	358.8	313.3	380.2	380.1
Metal Production	12,545	13,039	12,829	13,271	13,039	4,330	4,392	1,071.0	1,061.2	1,133.3	1,126.1
Metal Usage	12,392	12,995	13,006	13,104	13,010	4,260	4,370	1,063.3	1,042.0	1,145.2	1,119.2

London Metal Exchange (LME) lead prices experienced a cycle of early-year highs and gradual decline in Q3 2024, driven by supply and demand dynamics. Prices peaked in May 2024 at around $2,220/t, a temporary boost from seasonal battery demand. Prices remained subdued into late 2024 and early 2025, hovering between $1,999/t in August and $1,988-1,987/t by December and January.

A sharp buildup in inventory, weighed on pricing despite intermittent upticks in battery-sector consumption. Analysts noted a recurring seasonal cycle, with prices surged in spring and early summer before easing as battery-related demand off-season set in. Price rallies near $2,100/t were capped by stronger refined output and abundant inventory.

GLOBAL LEAD MARKET OUTLOOK

The Global Lead Acid Battery Market Size is estimated at USD 49.37 Bn in 2025, and is expected to reach USD 61.23 Bn by 2030, at a Compound Annual Growth Rate (CAGR) of 4.4%. (Source: Mordor Intelligence)

North America holds 24% of the global lead-acid battery market share, driven by its automotive sector and data centre infrastructure. Europes market experienced steady growth, with a strong manufacturing sector and commitment to renewable energy integration. The Asia-Pacific region, driven by industrialisation, automotive sectors, and renewable energy adoption, is projected to grow at 5% annually from 2024 to 2029. South America, Africa, and the Middle East are also experiencing increasing demand.

The market is undergoing a transformation fuelled by a growing emphasis on sustainable practices and the principles of a circular economy. The lead-acid battery sector has become a benchmark for sustainable manufacturing, with Europe attaining an outstanding 99% recycling rate for automotive lead-acid batteries. This remarkable recycling rate not only showcases the industrys dedication to environmental stewardship but also offers a competitive edge compared to other battery technologies. The efficient recycling infrastructure supports a stable supply chain and minimises the environmental effects of battery production.

INDIAN LEAD MARKET OUTLOOK

India Lead Acid Battery Market was valued at USD 1.97 Bn in 2023 and is expected to reach USD 3.15 Bn by 2029 with a CAGR of 8.1% (Source: MAIA, CareEdge Research).

Indias battery recycling sector is experiencing a swift transformation, driven by escalating industrial demand for energy storage, electric vehicles, and the nations growing emphasis on sustainability and a circular economy. Currently, lead-acid batteries dominate this segment, comprising nearly 85% of recycled batteries due to their extensive application in automobiles, inverters, telecom towers, and industrial backup systems. In recent years, advancements in recycling technologies and stricter regulations on lead disposal have improved the efficiency of lead recovery. The market growth trajectory will be reinforced by the increasing influx of used batteries from EVs and energy storage systems that are reaching the end of their operational life.

This was further driven by the removal of customs duties on lead scrap in the financial year 2025-26 Union Budget, encouraging formal recycling infrastructure due to its 15-25% cost advantage over primary metal. Government measures, such as the Battery Waste Management Rules, 2022 and incentives provided under the PLI scheme for ACC batteries, are facilitating investments in advanced recycling infrastructure.

Despite the presence of several reputable organised players, a considerable informal sector persists, often operating without adequate environmental safeguards, which has drawn regulatory scrutiny.

Overall, the market size of lead recycling market, in both value and volume, has increased as India prioritises sustainable practices and resource conservation. Indias battery recycling market is evolving from a fragmented and informal state to a more structured, technology-oriented, and regulated environment, with considerable potential for both domestic application and the export of recovered materials.

Growth Drivers	Key Opportunities
- Growing Demand for Electric Vehicles (EVs) propelling demand for Battery	- Transition to Deep-Cycle Lead-Acid Batteries capable of enduring extended usage
- Stringent Environmental Regulations	- Notable shift towards environmentally conscious and regulated recycling practices
- Resource Scarcity and Metal Recovery
- Environmental Awareness and Circular Economy	- Prospect for collaboration involving OEMs, recyclers, and governmental organisations to formulate effective EPR (Extended Producer Responsibility) frameworks
- Technology Advancements in Recycling Processes
- Expansion of Renewable Energy Storage to Expand the Market
Restraint/ Challenges
- Lack of sufficient infrastructure, the slow pace of regulatory enforcement, and public awareness remain major obstacles in addressing the environmental and health hazards posed by lead-acid battery use and disposal
- The merits associated with alternative battery technologies in terms of performance, energy efficiency, and environmental benefits are contributing to their growing appeal
- Fluctuating LME prices can affect profitability and investment in recycling operations

End Use of Lead Acid Battery

The increasing focus on sustainability and resource conservation has led to the use of recycled lead in various industries. In the automotive sector, recycled lead is crucial for manufacturing lead-acid batteries used in traditional vehicles and electric vehicles (EVs). The telecom industry also relies on recycled lead for backup power systems in data centres and communication networks. In transportation, lead is used in battery-powered vehicles and for energy storage in renewable energy applications. Recycled lead also finds applications in residential and industrial sectors, particularly in the production of batteries, roofing materials, and radiation shielding.

The recycled lead market is segmented into automotive, telecom, transportation, residential and industrial, renewable machinery, and others. The automotive industry is likely to hold the highest share of recycled lead by market value at 45.3%, with a projected consumption of USD 8,764.9 Mn in CY25. This is expected to increase at a CAGR of 4.9% till CY29.

Recycled lead is also used in backup power systems in the telecom industry, particularly in lead-acid batteries supporting telecom towers and data centres. These batteries ensure continuous power supply during outages, maintaining communication networks and data transmission. The demand for recycled lead in the telecom industry is projected to increase at a CAGR of 4.9% from CY23 to CY29, reaching market value of USD 2,010 Mn by CY29.

In the residential and industrial sectors, recycled lead is used in lead-acid batteries for backup power and lighting systems, as well as in the production of radiation shielding materials and safety equipment. This cost-effective and environmentally responsible alternative to primary lead supports energy storage and safety applications in various industries.

Organised vs Unorganised Market of Lead Recycling in India

In India, the lead recycling industry is segmented into organised and unorganised sectors, with the latter dominating the market landscape. The organised sector adheres to strict environmental regulations and safety standards, which ensures higher efficiency, improved recovery rates, and minimal emissions during the recycling process. Batteries in the organised market are collected through well-defined channels, including registered producers, battery aggregators, and manufacturers who comply with legal disposal and recycling guidelines.

On the other hand, the unorganised sector is still prevalent, driven by informal scrap dealers and smelters who collect batteries through itinerant collectors. This sector enjoys lower operational costs and higher collection volumes, as it bypasses compliance expenses and regulatory restrictions.

To overcome the above and to increase the organised sector in recycling industry, Government of India introduced Battery Waste Management Rules, 2022, (Amendment 2024-BWMR) was introduced with an aim to promote proper collection, storage, transportation, treatment and disposal of waste batteries including Lead Acid batteries with a compliance target for various types of batteries ranging from 55%-90% over a period of 3 years ending 2026-27. This will increase organised sectors share in the recycling industry from 35% in 2023 to 80% in 2029.

Government of India further introduced Extended Producer Responsibility which requires manufacturers to take responsibility for disposal of their products at the end of their useful life by purchasing EPR credits from the approved recyclers to comply the target given, failing which penalty will be levied on tonnage basis.

Further, the Government of India through GST Council has implemented Reverse Charge mechanism for metal scrap transactions and recommended a 2% TDS in supplies of metal scrap by registered businesses in B2B transactions.

All these initiatives introduced by the Government will improve the growth of the organised sector in the recycling industry substantially.

2) COPPER MARKET

Global Copper Market Overview

Copper is fundamental to the global shift towards renewable energy and a digitally interconnected economy. Its exceptional conductivity and flexibility are essential for major industries such as construction, electronics, renewable energy, transportation, and defense. As demand is expected to rise by over 40 percent by 2040, the global copper market is experiencing heightened pressure from supply constraints, geopolitical uncertainties, rising trade tensions, and decreasing ore grades. To satisfy this demand, it is crucial to implement coordinated policy actions. This includes speeding up mine development, increasing refining and manufacturing capacities, enhancing recycling efforts, and, most importantly, aiding producer countries in transforming their raw materials. By encouraging domestic processing, integration into regional and global value chains, and industrial transformation, these nations can capture more value and improve their role in the global supply chain.

The International Copper Study Group (ICSG) anticipates a modest increase in the demand for refined copper, estimating it to be around 2.4% in 2025, which is expected to decelerate to 1.8% in 2026. This slowdown is attributed to weak manufacturing and uncertainties in trade, particularly those associated with U.S. tariffs, which are dampening industrial activity in Europe, Japan, and the U.S. Meanwhile, China continues to be the main driver of demand. On the supply front, global mine production is projected to grow by 2.3% in 2025 and 2.5% in 2026, supported by capacity expansions in countries such as the DRC, Mongolia, and Russia, among others, which will enhance output. Refined copper production is expected to rise by 2.9% in 2025, before tapering off to 1.5% in 2026, hindered by shortages in concentrate despite the expansion of smelting facilities. These dynamics of supply and demand lead the ICSG to predict a surplus of approximately 289 kt in 2025, followed by a surplus of 209 kt in 2026, indicating the third consecutive year of excess refined metal.

LME copper experienced a heightened price cycle in 2024-25-peaking above $10,900/ton in 2024, stabilising around $9,600-9,700/ton in mid-2025- with movements driven by tariff speculation, inventory reallocations, and resilient Chinese demand. Forecasts remain varied, reflecting ongoing trade and supply uncertainties.

Global Copper Recycling Market

Copper is considered a valuable resource due to its exceptional electrical and thermal conductivity, malleability, and corrosion resistance. It can be fully recycled without any loss of its inherent characteristics, thus serving as a sustainable material for a range of industrial uses. The process of recycling copper is a key element of the global metals recycling industry, significantly supporting sustainable resource management.

Recycled copper serves as a sustainable substitute for mined copper, preserving the same quality while also decreasing CO 2 emissions. It is energy-efficient and diminishes the necessity for mining, thereby lessening the environmental impact associated with copper. Over the last century, two-thirds of the 690 Mn tonnes of copper that have been produced remain in use. Approximately 70% of the global copper output is utilised for electrical and conductivity purposes, with copper being the material of choice for power generation and transmission. The process of recycling copper requires

85% less energy compared to primary production, which leads to a reduction in energy consumption and CO2 emissions. To satisfy the increasing demand for copper, a combination of primary copper sourced from mines and secondary copper derived from recycled materials is essential.

The global copper recycling market is on a positive trajectory and further projected to grow at a CAGR of 6.6% from CY23 to CY29P This is expected to be driven by the increasing demand for copper across diverse applications including bolstered adoption of electric vehicles (EVs) and renewable energy technologies, both of which rely heavily on copper. Asia Pacific region is expected to hold a major share of the market and is expected to grow at the highest CAGR during the projected years. China is a major producer of electronic products globally and increasing demand for recycled copper in electronic production is expected to prosper the market growth during the forecasted years. Furthermore, the surging building and construction in developing economies like India would further support market growth going forward.

Indian Copper Recycling Market

The market was valued at USD 3,733 Mn in CY23 and is projected to reach USD 7,062 Mn in CY29P, growing at a CAGR of 11.2% from CY23 to CY29P The Indian copper recycling market in 2024-25 is experiencing robust growth, driven by rising demand from infrastructure, electric vehicles, renewable energy, and electronics manufacturing and supportive regulatory frameworks positions the market for sustained development in both volume and value terms. With copper consumption in India growing at a projected 11% annually, more than 50% of the demand is now being met through recycled sources. India boasts one of the highest copper recycling rates globally, recovering over 95% of end-of-life copper. The government has supported the sector through reduced import duties on copper scrap and funding under the National Critical Mineral Mission. However, the sector still faces challenges from an informal recycling ecosystem and limited advanced refining infrastructure. Overall, Indias copper recycling industry stands at a crucial inflection point, with strong potential to become a global leader in sustainable copper supply.

Improvements in recycling technologies, such as sensor-based sorting systems and advanced refining processes, have enhanced the efficiency and quality of recycled copper, making it more comparable to primary copper. Major companies are investing in expanding their recycling capacities in the country. In the country, the global shift towards a circular economy prioritises material reuse and recycling, aiming to reduce waste and enhance sustainability. Copper recycling aligns with these goals, as it supports the supply chain while decreasing reliance on newly mined copper.

Hence, demand for copper scrap in the regions is further driven by the inclination to develop a green economy and sustainable nature of copper scraps is crucial for minimising the carbon footprint, making it a substitute for primary metal production.

Strengths	Weaknesses
- High recyclability Property	- Quality variability
- Lower energy use	- Lack of formal infrastructure
- Cost-effective	- Difficulty in tracing scrap origin
- Supports circular economy	- Underdeveloped refining technology
Opportunities	Threats
- Rising copper demand	- Global price volatility
- Government Incentives and policy reforms	- Import dependency
- Technology upgrades	- Environmental concerns
- Corporate ESG goals	- Competition from alternatives

3) PLASTICS MARKET

Global Engineering Plastics Market

The Global Engineering Plastics Market size is estimated at 122.81 Bn USD in 2024 and is expected to reach 171.45 Bn USD by 2029, growing at a CAGR of 6.90%. (Source: Mordor Intelligence).

The engineering plastics industry is experiencing significant transformation driven by sustainability initiatives, technological advancements and smart manufacturing practices across major end-use sectors. Manufacturing companies are increasingly focusing on developing eco-friendly alternatives and sustainable production methods to meet stringent environmental regulations and changing consumer preferences. Major manufacturers are implementing innovative recycling technologies and developing closed-loop systems to reduce waste and improve resource efficiency. Companies are investing in research and development to create innovative materials with enhanced properties. The engineering plastics market includes several other important end-user segments, such as packaging, automotive, building and construction, industrial and machinery, and aerospace industries. The increasing focus on vehicle lightweighting and fuel efficiency is propelling the use of engineering plastics as substitutes for metals. Additionally, the shift towards electric vehicles and advanced aerospace applications is further promoting the advancement of high-performance engineering plastics with improved thermal and electrical characteristics.

Global Recycled Engineering Plastic Market

The global recycled engineering plastics market size is projected to reach USD 6.30 Bn by 2030, with an estimated CAGR of 4.97%. (Source: ResearchAndMarkets). This market represents a significant segment of the sustainable materials industry, driven by the need for high-performance, eco-friendly polymers.

Recycled engineering plastics, derived from post- consumer and post-industrial waste, are increasingly being adopted in sectors such as automotive, electronics, construction, and packaging. These materials offer a combination of mechanical strength, thermal stability, and chemical resistance, effectively substituting virgin plastics in high-demand applications. Stringent sustainability regulations and a transition towards circular economy practices are driving the widespread use of recycled engineering plastics, particularly in areas with strict environmental policies.

Polycarbonate held the largest product type share, contributing USD 1.31 Bn in 2024. Mechanical recycling dominated the recycling process, with over 36.64% revenue share in 2024. Automotive applications accounted for the largest market share at 33.61% in 2024. Asia Pacific led the market, with companies employing closed-loop recycling to enhance resource efficiency and reduce dependency on virgin polymers. China emerged as the leading manufacturer within the Asia Pacific, capturing around 33% of the regional revenue market share in 2024.

Major growth factors include the global emphasis on minimising carbon footprints and implementing effective waste management strategies. Companies are incorporating recycled polymers to meet requirements such as extended producer responsibility (EPR) targets and minimum recycled content standards. Improvements in mechanical and chemical recycling technologies are enhancing the quality and usability of recycled materials, broadening their application in sectors like automotive interiors, electronic housing, and durable packaging. As corporate sustainability efforts and consumer awareness of eco-friendly materials increase, the market is poised for continued expansion.

Indian Recycled Engineering Plastic Market

Indian Engineering Plastics Market size was estimated at USD 3.77 Bn in 2024. During the forecast period between 2025 and 2031, India Engineering Plastics Market size is projected to grow at a CAGR of 7.7% reaching a value of USD 6.33 Bn by 2031.

The recycled plastic market in India has experienced consistent growth, primarily driven by the increasing consumption of plastic due to population growth, urbanisation, and industrialisation. Despite generating a large amount of plastic waste, Indias recycling infrastructure has struggled to keep pace, with much of the waste managed by the informal sector. However, the governments initiatives, including the Plastics Pact, have played a key role in promoting recycling and setting ambitious targets for the future.

Moving forward, the market is expected to grow significantly, driven by advancements in recycling technologies, stricter regulations, and a rising demand for sustainable, recyclable packaging solutions across various industries.

Demand Drivers	Challenges faced by the Industry
- Government Regulations and Policies.	- Lack of Adequate Infrastructure.
- Environmental Awareness.	- Inefficient Plastic Waste Segregation.
- Technological Advancements in Recycling.	- High Contamination Rates.
- Corporate Sustainability Initiatives	- Limited Technological Advancements.

4) ALUMINIUM MARKET Global Aluminium Market

The global aluminium recycling market is projected to grow at a CAGR of 6.5% from CY23 to CY29 and expected to reach a market value of USD 1,07,242.9 Mn by CY29. This growth is expected to be primarily fuelled by the rising demand for sustainable and energy- efficient solutions, particularly in the automotive and construction sectors. The increasing focus on reducing carbon footprints and meeting net-zero emission goals will push industries to rely more on recycled aluminium. Historically, the global aluminium recycling market experienced a significant setback due to the COVID-19 pandemic, especially in sectors like construction and automotive, which are major consumers of aluminium. LME aluminium prices fluctuated significantly in 2024- 25, starting at $2,250 per tonne in March, increasing to $2,700 in May due to sanctions on Russia, then decreasing to $2,200 by July. In November, a reduction in export rebates from China increased prices to $2,600, stabilising at around $2,500 by December.

Outlook

Global aluminium demand is projected to grow at a CAGR of 3% from 2024 to 2030, supported by decarbonisation trends and the shift towards clean energy. By 2030, demand from electric vehicles (EVs) is expected to reach 31.7 Mn tonnes. In China, consumption continues to exhibit strength, although long-term growth will hinge on sustained activity in transportation and a gradual recovery in construction. For the Rest of the World, a modest increase in demand is anticipated in 2025 as inflation moderates and investment begins to rise. India is expected to remain a strong demand centre, with domestic consumption projected to grow over 8% in the financial year 2025-26. The rising demand from sectors such as electronics, appliances, renewables, defence, and aerospace will continue to underpin this growth.

RISKS, OPPORTUNITIES AND THREATS

The disparity between supply and demand, coupled with positive indicators of global development and changes on the supply side, has bolstered the resurgence of the metal industry. There are ample opportunities for us to create value for stakeholders, influenced by the industrys long-term trends, strategic expansion initiatives, commitment to sustainability and social responsibility, demand for metals, and a solid balance sheet. The success of POCL as an organisation is contingent upon our ability to identify and seize opportunities while minimising the associated business risks. The major challenges faced by the Company include pricing dynamics, rising demand, global economic conditions, and ongoing market volatility. POCL is focused on maintaining liquidity in its balance sheet and implementing strategies to enhance operational cash flow for long-term profitability. The generation and preservation of cash continue to be primary focus.

The Company is subject to the risk that fluctuations in foreign exchange rates may affect its export earnings and the costs of raw material imports. It is exposed to foreign exchange risk stemming from currency exposures, mainly concerning the US Dollar. POCL has established a comprehensive risk management framework that includes the monitoring, identification, and mitigation of risks related to foreign exchange and commodity prices. These risks are consistently tracked and monitored, with mitigation strategies adopted in alignment with the risk management framework. To mitigate the effects of exchange rate movements, POCL primarily employs forward exchange contracts.

SEGMENT WISE OR PRODUCT WISE PERFORMANCE:

Lead & Lead Alloys

During the year 2024-25, your Company achieved good capacity utilisation and the Companys annual production of Lead and Lead Alloys was 94,115 MT against 72,531 MT for the previous year showing 30% increase in the production despite certain macro- economic and geo-political issues. The overall Lead manufacturing capacity of all units together is at 1,32,000 MT per annum.

Copper

During the year under review, the Company had an annual production of 741 MT as against 81 MT in the previous year. Despite the challenging economic situation, fluctuating LME prices and demand and supply imbalance POCL is looking for viable opportunities for increase production going forward. The overall copper recycling capacity is 6,000 MT per annum.

INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY:

POCL has implemented comprehensive internal financial control systems, well-suited to the Companys size and operational scope. These systems are intended to foster confidence in key operational areas. They ensure accurate recording and reporting of financial and operational data, compliance with relevant accounting standards and regulations, and protection of assets from unauthorised use. They also support proper amortisation of transactions and strict adherence to corporate policies. Furthermore, POCL has set up a clear framework for delegating authority and establishing defined limits for capital and revenue expenditure approval.

The Audit Committee regularly engages with the Management team to evaluate the effectiveness of these internal financial control systems. The Committee also seeks insights from both internal and external auditors to assess the efficiency of these systems. The objective is to ensure the proper functioning of these controls. The Audit Committee affirms that the internal financial control systems are both sufficient and effective. Additionally, the Company provides consistent updates to the Board of Directors about the progress and findings. However, POCL acknowledges the inherent limitations of any control framework and conducts periodic audits and reviews to ensure these systems are regularly strengthened to remain effective.

DISCUSSION ON FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONAL PERFORMANCE:

(Rs in Crs except for EPS)

Performance Metrics	2024-25	2023-24	Change %
Revenue from Operations	2,028.27	1,525.62	32.95
Earnings before Interest, Tax, Depreciation & Amortisation (EBITDA)	107.55	77.21	39.30
Depreciation and Amortisation Expense	11.18	9.22	21.26
Earnings Before Interest and Tax (EBIT)	96.37	67.99	41.74
Finance Costs (Interest)	11.64	16.36	(28.85)
Earnings after Tax (EAT)	65.06	39.52	64.63
Shareholders fund	597.51	354.84	68.39
Earnings per Share (EPS)	24.69	16.87	46.35
Recommended Dividend	10.68	6.51	64.06
Property, Plant and Equipment	118.93	103.45	14.96
Capital Work in progress	74.66	8.33	796.28

MATERIAL DEVELOPMENTS IN HUMAN RESOURCES / INDUSTRIAL RELATIONS FRONT, INCLUDING NO. OF PEOPLE EMPLOYED:

The Company continues to prioritise the development, engagement, and well-being of its workforce. POCL Limited is determined to create a culture characterised by high trust and high performance across its operations. The Company enhances the employee experience by executing initiatives such as internal job rotations, mentorship programmes, and improved communication and feedback mechanisms. Learning and leadership development are emphasized through structured training offered by the POCL. Furthermore, the Company has strengthened its HR functions through digitisation, including the deployment of HRMS systems and new modules aimed at optimising operations. Engagement levels have been improved through participative surveys and by acknowledging employee contributions and performance with awards. These efforts have enabled the Company to foster a motivated, skilled, and future-ready workforce. As of 31 st March 2025, POCL had 468 permanent employees on its payroll.

DETAILS OF SIGNIFICANT CHANGES IN KEY FINANCIAL RATIOS, ALONG-WITH DETAILED EXPLANATION INCLUDING:

Key Financial Ratios	2024-25	2023-24	Change %	Remarks
Debtors turnover (in times)	17.79	15.23	16.81	Due to increase in turnover
Inventory Turnover (in times)	11.21	10.98	2.09	Due to increase in turnover
Interest Coverage Ratio (in times)	9.24	4.20	120.00	Due to increase in Earnings
Current Ratio (in times)	3.62	2.58	40.31	Due to increase in current assets
Debt Equity Ratio (in times)	0.01	0.01	0.00
Gross Profit Margin (%)	10.31	11.20	(7.95)	Due to variation in Profit Margin
Net Profit Margin (%)	3.21	2.59	23.94	Due to increase in profit
Return on Capital Employed (in times)	0.16	0.19	(15.79)	Due to increase in net worth

CAUTIONARY STATEMENT

Statements in this Annual Report on describing our objective, projections, estimates and expectations may be forward- looking statements within the meaning of applicable laws, Rules, Regulations, etc. Actual results could differ materially from those expressed or implied. Important factors that could make a difference to our operations include, among others, economic conditions affecting demand/ supply and price conditions in the domestic and overseas markets, in which we operate, in addition to changes in government regulations, tax laws and other statutes and incidental factors.

	For and on behalf of the Board of Directors
	Pondy Oxides and Chemicals Limited
	Anil Kumar Bansal	Ashish Bansal
Date: 23 rd July 2025	Chairman & Whole Time Director	Managing Director
Place: Chennai	DIN:00232223	DIN: 01543967