ICE Make Refrigeration Ltd

- Management indicated a possibility of increasing debt to support aggressive business growth, especially due to good order inflow from quick commerce and funds blocked in non-fund based projects. - They plan to increase the fund limit by around Rs. 20 crore to Rs. 25 crore, though not expecting to utilize 100% immediately but keeping buffer margins. - There is openness toward raising funds through bank loans or equity depending on opportunities and timing, especially for future acquisitions, collaborations, and CAPEX. - No concrete or immediate equity fundraising announced; decisions on CAPEX beyond phase 1 will be reviewed around September-October 2025. - The company aims to remain flexible with funding sources based on project feasibility and market conditions.

- Current CAPEX of around Rs. 20 crore is focused on modernization and semi-automation of the adjusting facility, mainly for machinery upgrades to improve power quality and workmanship. - Chennai plant CAPEX is approximately Rs. 10,000 crore (₹100 crore, likely a typo, but exact figure mentioned) and is progressing on schedule, expected to be operational by next quarter. - Phase 2 CAPEX planned around Rs. 150 crore+, with funding potentially spread over FY’26 and FY’27, focusing on acquisitions, collaborations, and geographical expansion rather than new land or building. - Internal reshuffling and plant modifications may increase installed capacity without large new CAPEX. - No current plans for CAPEX related to land acquisition or new plant setup. - Open to all funding options including bank loans and equity based on opportunities. - Acquisition and collaboration ambitions exist but specifics remain confidential and dependent on valuation and timing.

- The company targets to reach Rs. 1000 crore revenue by FY’28 with focus on marketing, branding, and maximizing utilization of existing and new verticals. - New plants are expected to contribute Rs. 150 crore in the current financial year and potentially Rs. 225-250 crore from continuous PUF panels and Rs. 130 crore from commercial freezers at full capacity. - The company aims for Rs. 650 crore topline with current plants and new expansions. - Order book stands strong at around Rs. 171 crore, ensuring high revenue visibility. - Growth is driven by sectors like dairy, pharmaceuticals, food processing, quick commerce, and e-commerce. - Geographically, growth is strong in Eastern and Southern India, maintaining dominant 51% revenue share from the West. - Export target is Rs. 25 crore, with US market expansion underway after certification. - EBITDA margin expected to stabilize around 9.5% to 10.5% in the next financial year after CAPEX ramp-up.

- The company targets a topline of Rs. 1000 crore by FY’28, focusing on maximizing utilization of existing and new verticals. - EBITDA margin guidance is steady at 9.5% to 10.5% until the Rs. 1000 crore topline is achieved, with potential for a slight 1-2% increase later. - Initial years' profitability is compressed due to higher depreciation and interest from new CAPEX; margins expected to stabilize with scale-up. - Net profit slightly compressed in FY’25 (Rs. 22.9 crore) vs FY’24 due to incremental expenses but expected to improve as new plants ramp up. - EPS for FY’25 was Rs. 14.65 (down from Rs. 16.64 in FY’24) with expectation of growth post full operation of new plants. - The company is focused more on topline growth and market expansion, with operating leverage positively impacting earnings over next 2-3 years.

- The current pending order book stands strong at approximately Rs. 171 crore. - This includes significant orders from core and emerging verticals, providing high revenue visibility going into FY’26. - Pending orders include: - Rs. 28.5 crore from Jammu and Kashmir horticulture department. - Two orders worth Rs. 42 crore from West Bengal government. - Orders from dairy federations, NDTP, reputed food processing industries, and leading global restaurant brands. - Export pending order book is around Rs. 6 crore, with discussions ongoing for Rs. 7-8 crore more, which may materialize. - The order book is growing quarter-on-quarter, showing consistent increase and good momentum.