ICE Make Refrigeration Ltd Q4 FY25 Earnings Analysis

- Company targets achieving Rs. 500 crore topline in current financial year (FY25). - Aims to reach Rs. 1,000 crore topline by 2028. - Quick commerce segment expected to grow to Rs. 900-1,000 crore market potential in next 2-3 years; company expects Rs. 50 crore revenue with 15% market share. - New verticals like Continuous PUF panels and commercial freezers expected to become profitable by FY26. - Current capacity can generate Rs. 450-500 crore revenue; with new CAPEX total capacity supports Rs. 800 crore top-line. - Order book stands at Rs. 167 crore, with daily dispatch increasing (Rs. 2-3 crore daily). - E-commerce and quick commerce business showing strong demand and growth potential. - Expansion plans include new South plant with Rs. 10 crore CAPEX underway. - Exports to US expected after certification by end of current financial year, opening new market opportunities.

- The company aims to achieve a topline of Rs. 500 crore in the current financial year and Rs. 1,000 crore by 2028. - EBITDA margin guidance is maintained at 9.5% to 10.5% until reaching Rs. 1,000 crore topline. - The new verticals (Continuous PUF panels and commercial freezers) are expected to be profitable from FY26. - PAT is expected around Rs. 20 crore plus this year, but will be under pressure due to depreciation and interest; PAT margin expected to improve after FY26 as loan and depreciation impact eases. - Debt repayment is not a current priority; growth and CAPEX will be funded by cash flows and loans (current loans at ~8.1% interest). - Quick commerce vertical expected to generate Rs. 50 crore revenue with 15% market share over next 2-3 years. - Profit margins may improve further post optimum utilization of new and old capacities in 3-4 years, with potential to reach 11-12% EBITDA margin.

- Company has already invested around Rs. 100 crore in CAPEX related to continuous PUF panel factory and commercial refrigeration. - A new CAPEX plan of about Rs. 150 crore plus is under consideration but not yet finalized. - Focus currently is to stabilize new product businesses (continuous PUF panels and commercial freezers). - Further CAPEX decisions will be reviewed post current financial year-end (April/May) based on cash flow and business performance. - South plant expansion is underway with ongoing construction; expected ready for shifting by end of Q1 next financial year. - Planned additional CAPEX for south plant estimated around Rs. 10 crore (land, building, machinery) and is in progress. - For large projects or tenders, CAPEX and terms differ depending on the nature of the business. - The company intends to invest in automation to reduce costs and complement EBITDA margins going forward.

- The company has not finalized the mode of funding for new CAPEX (continuous PUF panel and commercial filters expansion). - They are currently reviewing cash flow generation and business performance before deciding on funding. - New CAPEX plans amount to about Rs. 150 crore plus, but the decision on funding sources (internal accruals, debt, or others) remains open. - Debt repayment is not an immediate priority due to the favorable interest rate (about 8.1%) on existing loans. - The company is focusing on growth and may redeploy profits rather than aggressively repaying debt. - No explicit mention of equity fundraising was made in the discussed Q3FY25 call excerpt.

- Total pending order book is around Rs. 167 crore. - Cold room vertical pending order: Rs. 39 crore. - Commercial vertical pending order: Approximately Rs. 30 crore. - Industrial refrigeration pending order: Rs. 4.5 crore. - Transport refrigeration pending order: Rs. 5.25 crore. - Ammonia refrigeration pending order: Rs. 29.4 crore. - Commercial freezer pending order: Rs. 1.5 crore. - Continuous panel pending order: Rs. 9.5 crore. - Project business pending order: About Rs. 51 crore. - Orders are a mix of short-term (executed within month) and long-term (6-12 months delivery). - Monthly dispatch value ranges from Rs. 1.5 crore to Rs. 4 crore, averaging 2-3 crore daily. - Strong order pipeline in quick commerce with 15% market share expected to generate Rs. 50 crore revenue.