RATING RATIONALE
27Jan2022

Pondy Oxides and Chemicals Ltd.

Brickwork Ratings withdraws the ratings for the Bank Loan Facilities of Rs. 160.69 Crs. of Pondy Oxides and Chemicals Ltd.

Particulars
Facilities** Amount (Rs.Crs.) Tenure Rating#
Previous Present Previous
(28 Oct 2020)
Present
Fund Based 160.69 160.69 Long Term BWR A-/Stable
Reaffirmation and change in Outlook
BWR BBB + /Stable
Downgrade/Withdrawal
Non Fund Based (20.00) (20.00) Short Term BWR A2+
Reaffirmation and change in Outlook
BWR A2
Downgrade/Withdrawal
(0.25) (0.25)
Grand Total 160.69 160.69 (Rupees One Hundred Sixty Crores and Sixty Nine lakhs Only)
#Please refer to BWR website www.brickworkratings.com for definition of the ratings
**Details of Bank Loan facilities,consolidation or instruments are provided in Annexure
Note: Rating Advisory for delay in rating review issued on 28Oct2021

RATING ACTION / OUTLOOK

Brickwork Ratings (BWR) has downgraded and simultaneously withdrawn the ratings based on the request of Pondy Oxides and Chemicals Limited for rating withdrawal and No Objection Certificate (NOC) from the lenders. BWR takes note of the information risk arising from the absence of certain requisite details pertaining to the financial, operational performance and liquidity position amongst others. Hence, in accordance with extant regulatory guidelines and BWR Rating Withdrawal Policy, ratings for the bank loan facilities of Rs. 160.69 Crs. are downgraded and simultaneously withdrawn.

ABOUT THE ENTITY

Pondy Oxides & Chemicals Limited (POCL) is a Public Limited Company incorporated under the Companies Act, 1956. The company’s equity shares are listed at the Bombay Stock Exchange (BSE). The registered office of the company is situated at KRM Centre, 4th Floor, #2, Harrington Road, Chetpet, Chennai, Tamil Nadu - 600031. The company carries out smelting of Lead Battery Scrap to produce secondary lead metal which is further transformed into Pure lead and Specific Lead Alloys. Further, the company also manufactures Zinc metal and Zinc Oxide. In FY22, the company has started copper recycling/refining. POCL has its manufacturing plants in Sriperumbudur, Tamil Nadu and Chittoor, Andhra Pradesh. 

Mr. Anil Kumar Bansal is the Chairman and Mr. Ashish Bansal the Managing Director of the company.

Based on Q2 and H1FY22 results available in the public domain, the company has achieved revenue of ~Rs. 644 Crs. and PAT of Rs. 23.60 Crs.

STATUS OF NON-COOPERATION WITH PREVIOUS CRA

Not applicable

RATING HISTORY FOR THE PREVIOUS THREE YEARS (including withdrawal and suspended)
Facilities Current Rating  (2022) 2021 2020 2019
Type Tenure Amount
(Rs.Crs.)
Rating Date Rating Date Rating Date Rating
Fund Based LT 160.69
BWR BBB+/Stable
(Downgrade/Withdrawal)
NA
NA
28Oct2020
BWR A-Stable
(Reaffirmation and change in Outlook)
22Apr2019
BWR A-Stable
(Upgrade)
NA
NA
NA
NA
NA
NA
08Nov2019
BWR A-Credit Watch with Developing Implications
(Reaffirmation and change in Outlook)
Fund Based ST NA
NA
NA
NA
NA
NA
22Apr2019
BWR A2+
(Upgrade)
NA
NA
NA
NA
NA
NA
08Nov2019
BWR A2+Credit Watch with Developing Implications
(Reaffirmation and change in Outlook)
Non Fund Based ST NA
NA
NA
NA
28Oct2020
BWR A2+
(Reaffirmation and change in Outlook)
22Apr2019
BWR A2+
(Upgrade)
NA
NA
NA
NA
NA
NA
08Nov2019
BWR A2+Credit Watch with Developing Implications
(Reaffirmation and change in Outlook)
NFB SubLimit ST (20.00)
BWR A2
(Downgrade/Withdrawal)
NA
NA
NA
NA
NA
NA
(0.25)
BWR A2
(Downgrade/Withdrawal)
NA
NA
NA
NA
NA
NA
Grand Total 160.69 (Rupees One Hundred Sixty Crores and Sixty Nine lakhs Only)
Rating Advisory, as on 28Oct2021
Press Release, as on 28Oct2021
COMPLEXITY LEVELS OF THE INSTRUMENTS - Simple

BWR complexity levels are meant for educating investors. The BWR complexity levels are available at www.brickworkratings.com / download / ComplexityLevels.pdf. Investors queries can be sent to info@brickworkratings.com.

Hyperlink/Reference to applicable Criteria
Analytical Contacts

Swarn Saurabh

Senior Rating Analyst swarn.s@brickworkratings.com

Saakshi Kanwar

Senior Manager Ratings saakshi.k@brickworkratings.com
1-860-425-2742 | media@brickworkratings.com
Pondy Oxides and Chemicals Ltd.
ANNEXURE-I
Details of Bank Facilities rated by BWR
SL.No. Name of the Bank/Lender Type Of Facilities Long Term(Rs.Crs.) Short Term(Rs.Crs.) Total(Rs.Crs.)
1 Axis Bank Ltd. Term LoanOut-standing 2.71 _ 2.71
2 Axis Bank Ltd. Cash CreditSanctioned 41.00 _ 41.00
3 Canara Bank OCC/ODBD/WCDL/BillsSanctioned 40.00 _ 40.00
Sub-Limit (Bank Guarantee) Sanctioned (0.25)
Sub-Limit (LC/WCDL) Sanctioned (20.00)
4 HDFC Bank Term LoanOut-standing 1.98 _ 1.98
5 HDFC Bank Cash CreditSanctioned 30.00 _ 30.00
6 HSBC FBWC (CC/EPC/FBD/FBP)Sanctioned 45.00 _ 45.00
Total 160.69 0.00 160.69
TOTAL (Rupees One Hundred Sixty Crores and Sixty Nine lakhs Only)
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