Pondy Oxide aims about Rs 4cr pa profit from Lohia Metals

Below is the verbatim transcript of the interview. Also watch the accompanying video.

Q: Are you bullish on the exports for FY12? You have done about 1,200 tonne per month for lead and lead alloys. How much can that go up by?

A: It will go up by another 400 tonne per month which will be around 4,800 tonne per annum.

Q: For FY12, what would that do to your total revenues? How much of a scale up can be seen in that?

A: Lohia Metals will be merging with Pondy Oxides and Chemicals. We are expecting FY12 revenue to go about Rs 400 crore.

Q: When will Lohia Metals integration complete?

A: It will be completed in another two months time. The process is already on.

Q: How is Lohia Metals doing currently? What sort of contribution can we expect possibly by FY12-FY13, once it comes on stream?

A: We expect about Rs 100 crore turnover from Lohia Metals, which is a subsidiary of Pondy Oxides now and merger process is on. Once it’s merged with Pondy Oxides, we will be having a turnover of about Rs 100 crore per annum.

Q: What are the kind of margins for Lohia Metals? Will that in any way add to your margins?

A: We are expecting a profit of about Rs 4 crore per annum from Lohia Metals.

Q: What sort of capacity are you working at currently? What is the demand picture are you working with?

A: We are working on a capacity of 1,500-1,600 metric tonne per month at present. We are increasing the capacity by 2,200 metric tonne per month, which will be an increased capacity of 600 tonne per month.

Q: How exactly are you funding this capex?

A: This is from our internal accrual only.

Q: What so the total amount required for this capex?

A: This is ongoing process where we will be increasing the capacity of the plant by another 20% requiring a capex of around Rs 2 crore.

Q: Don’t you have any kind of fund raising?

A: No. Pondy Oxides is planning to setup a smelter, other than the present one, for which we might raise fund later on.

Q: Could you tell us more about the smelter? What will be its capacity and when will it come on stream?

A: We are planning to setup a smelter of about 2,200 tonne per month capacity near Chennai.