ICE Make Refrigeration Ltd

- Current debt position: Around Rs. 57 crores (Ankit Patel, Page 7). - Post-project implementation, expected debt will be around Rs. 60 to 70 crores (Ankit Patel, Page 7). - Debt profile considered comfortable for ongoing projects, with no final decision made on whether to raise additional funds via debt or other sources (Ankit Patel, Page 7). - Rs. 200 crore CAPEX planned for current fiscal year, partly funded by internal accruals and potentially debt or other sources (Nikhil Bhatt, Page 10). - No specific mention of planned new equity fundraising. - Management open to exploring other funding options including debt or acquisition-related capital for geographical expansion or warehousing needs (Nikhil Bhatt, Page 10).

- Current CAPEX of Rs. 200 crores includes major projects: - Continuous PUF Panels plant (civil work ongoing, machinery from China and Singapore delivered, production expected by Q3 FY25). - Chest Freezers production (machinery ordered, operation expected by October 2024). - Chennai plant expansion/relocation (civil work underway, expected completion in 6 months, shifting by end of FY25). - Expansion in Kolkata with additional stock points/warehousing to reduce logistics costs. - Rs. 75+ crores planned to be spent this year for Continuous PUF Panels and Chest Freezers. - Future CAPEX will focus on geographical expansion, new product lines like Chest Freezers and Visi Coolers, warehousing, and possibly acquisitions. - Debt after project completion projected around Rs. 60-70 crores. - CAPEX decisions are guided by ROCE benchmarks (~25%) and market opportunities, with a focus on premium verticals (Cold Room, Industrial, Commercial).

- Company targets Rs. 1,000 to Rs. 1,100 crores topline by 2027-28, roughly 2.5x growth from FY24 revenue of Rs. 379 crores. - Industry growth drivers include increasing demand in cold storage due to government initiatives and rising need in dairy, ice cream, pharma, and food processing sectors. - Expansion in product lines like Continuous PUF Panels and Commercial Refrigeration expected to add Rs. 100-145 crores revenue in coming years. - Ice cream industry growth and CAPEX in cold chain sectors signal strong volume increases, with potential for 25%-30%+ volume growth next season. - New product and geographic expansions, including East plant ramp-up, expected to increase capacity utilization from 70% to 80%. - Export opportunities are being explored with potential to tap new markets in 1-2 years. - Mix of premium verticals (Cold Rooms, Industrial, Commercial) projected to drive 75%+ of sales, maintaining stable and growing revenue streams.

- Ice Make Refrigeration aims to reach Rs. 1,000 crore topline by FY27-28. - Q4 FY24 EBITDA margin improved to 14.93%, with a targeted sustainable EBITDA margin between 9.5% to 10.5%. - Full-year FY24 revenues grew 21% YoY to Rs. 379 crores; net profit increased by 26.2% YoY. - Earnings have grown at an average annual rate of 39.4% over the past 5 years. - Return on Equity (ROE) stands high at 25.1%, reflecting strong profitability. - Market capitalization increased by 88% in FY24, signaling investor confidence. - Company plans capacity expansion including Continuous PUF Panels and Commercial Refrigeration, contributing incremental revenue of approx Rs. 125-145 crores over two years. - Focus remains on premium verticals; project business complements growth but with lower margins. - Operating leverage expected to sustain EBITDA margin around 10%, with potential to improve beyond that. - Dividend payments increased, reflecting strong cash generation and shareholder returns.

- Current pending order book is over Rs. 122 crores. - Order book mix includes: - Ammonia vertical: Rs. 30 crores - Cold Rooms: Rs. 21 crores - Commercial vertical: Over Rs. 25 crores - Large projects like Ammonia and big dairy projects have delivery timelines of 6 to 12 months. - Small and modular Cold Rooms and Commercial products have shorter timelines (2 to 9 weeks). - Ongoing projects include substantial orders from Jammu Kashmir Horticulture Department and reputed clients like Haldiram’s, Bikanervala, Amul Group. - The order size in Ammonia vertical and Cold Room projects is comparatively larger than before. - Some projects have pending dispatches, e.g., the Haringhata project in Kolkata with around Rs. 35 crores pending dispatch.