Pondy Oxides and Chemicals shares hit 5% lower circuit after Q3 net profit declines 14.7% QoQ

Pondy Oxides and Chemicals Limited announced its financial results for the third quarter ended December 31, 2024. Despite solid year-on-year growth across key metrics, the company’s shares dropped 5% to ₹713.05 during Wednesday’s trading session.

Key Financial Highlights (Q3 FY25 vs Q3 FY24):

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  • Revenue from Operations: ₹509.14 crore, a significant 11.3% increase compared to ₹457.36 crore in the same quarter last year.
  • Total Income: ₹510.16 crore, up 11.8% YoY from ₹456.40 crore.
  • Net Profit: ₹15.25 crore, marking a robust 50.5% YoY growth from ₹10.13 crore in Q3 FY24.

Quarter-on-Quarter Performance (Q3 FY25 vs Q2 FY25):

  • Revenue from Operations: Declined by 12.9% to ₹509.14 crore from ₹579.10 crore in the previous quarter.
  • Net Profit: Fell by 14.7% QoQ to ₹15.25 crore compared to ₹17.91 crore in Q2 FY25.

Nine-Month Performance (9M FY25 vs 9M FY24):

  • Revenue from Operations: ₹1,533.19 crore, a significant 30% increase from ₹1,179.13 crore.
  • Net Profit: ₹41.44 crore, reflecting a 32.7% YoY growth from ₹31.22 crore in the corresponding period of the previous year.

Operational Highlights:

  • Total expenses for Q3 FY25 stood at ₹558.46 crore, compared to ₹441.66 crore in Q3 FY24, reflecting the company’s growth initiatives and cost structure.
  • The company attributed its consistent growth to increased demand for its products and strategic cost management, even amid challenging market conditions.

Management Commentary: The leadership of Pondy Oxides and Chemicals emphasized their focus on enhancing operational efficiency and adapting to evolving market dynamics. They reiterated their commitment to delivering value to stakeholders through sustained growth and strategic investments in the coming quarters.

Market Reaction: Despite strong financial performance, the stock faced a 5% decline during Wednesday’s trading session, closing at ₹713.05. Analysts attribute this to broader market trends and investor sentiment.