Any current/future capex/capital investment/strategic investment?

Current capex is close to INR100 crore, covering both coal/ash handling fleet and electric vehicle (EV) fleet expansion. For doubling ash handling fleet capacity from 800 to around 1,500-1,600 vehicles, capex of approximately INR75-100 crore is expected if vehicles are owned. Majority of fleet vehicles are leased; aim to own no more than 10% of the fleet. No immediate large-scale capital raise planned; internal funding and working capital limits with lenders are being utilized. An enabling resolution for raising up to INR1000 crore is in place for future working capital needs but no immediate

Future growth expectations in sales/revenue/volumes?

Ash and coal handling business is the primary growth driver with revenues rising from INR68 crores last year same quarter to INR550 crores in Q1 FY25, expecting continued quarter-on-quarter growth. Daily ash handling capacity currently at 50,000 metric tons with capacity to scale further as new orders are secured. Ash handling volumes targeted to grow roughly 3x from 6 million tons last year to about 18 million tons this year. Green mobility segment aiming for a fleet expansion to 2,000 electric vehicles by March next year, with potential revenues of INR7-8 lakhs per vehicle annually. Refriger

Future growth expectations in earnings/operating earnings/profits/EPS?

Revenue growth momentum is expected to continue quarter on quarter driven mainly by ash and coal handling business. Q1 FY25 showed 54%-55% YoY increase in total income; a similar growth outlook is envisaged for the rest of the year. EBITDA grew 42.85% YoY in Q1 FY25, with expectations of improving margins as ash handling contract efficiencies increase. PAT rose 63.39% YoY in Q1 FY25; EPS grew by 56.28%, indicating strong profitability gains. Ash handling business capacity and fleet expansions are planned, supporting volume growth and margin improvement. Electric vehicle segment projected to sc

Current/ Expected Orderbook/ Pending Orders?

Management confirmed having a good signed order available to support growth. Capacity increase to meet new orders will not be an issue; management is prepared for capex if required. The ash handling business is continuously growing, with ongoing efforts to acquire more contracts. They currently handle around 50,000 tons per day of ash and coal, with the capacity to do much more by adding fleet and resources. New client additions are expected to add about 7,000 to 10,000 tons per day within two to three months. The order book supports growth momentum quarter on quarter. No immediate large plann

Any current/future new fundraising through debt or equity?

Refex Industries has not taken approval for any immediate fundraising as of now; the INR1000 crore approval is only an enabling provision for future needs, allowing fast approval if required. Current funding for capex (around INR100 crores for fleet addition in ash handling and green mobility) is expected to come from internal accruals and working capital limits with lenders. The company is not currently seeking a new CFO, as the strong accounts team manages financial operations and fundraising strategy. Preferential allotment of warrants to Sherisha Technologies (promoter holding company) was

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Refex Industries LtdQ2 FY24Other Utilities

Refex Industries Ltd Q2 FY24 Earnings Call Analysis

Revenue, margin, capex, fundraise and order book outlook from management commentary.

Price: ₹349P/E: 19.2Market Cap: ₹3.6K CrSector: Other Utilities

Management growth scorecard

Revenue

Category 1

Margin

Category 3

Fundraise

Yes

Order

Yes

Capex

Yes

4 of 5 growth signals are positive — a strong management growth story.

Full analysis

Revenue guidance

Category 1

→Ash and coal handling business is the primary growth driver with revenues rising from INR68 crores last year same quarter to INR550 crores in Q1 FY25, expecting continued quarter-on-quarter growth.
→Daily ash handling capacity currently at 50,000 metric tons with capacity to scale further as new orders are secured.
→Ash handling volumes targeted to grow roughly 3x from 6 million tons last year to about 18 million tons this year.
→Green mobility segment aiming for a fleet expansion to 2,000 electric vehicles by March next year, with potential revenues of INR7-8 lakhs per vehicle annually.
→Refrigerant gas business steady with INR20.91 crores revenue this quarter; power trading and coal trading continued alongside ash handling.
→Management confident of maintaining robust growth momentum quarter-on-quarter for the rest of the year.

Margin guidance

Category 3

→Revenue growth momentum is expected to continue quarter on quarter driven mainly by ash and coal handling business.
→Q1 FY25 showed 54%-55% YoY increase in total income; a similar growth outlook is envisaged for the rest of the year.
→EBITDA grew 42.85% YoY in Q1 FY25, with expectations of improving margins as ash handling contract efficiencies increase.
→PAT rose 63.39% YoY in Q1 FY25; EPS grew by 56.28%, indicating strong profitability gains.
→Ash handling business capacity and fleet expansions are planned, supporting volume growth and margin improvement.
→Electric vehicle segment projected to scale from 539 vehicles to 2000 by March next year, with revenue potential of INR 7-8 lakhs per vehicle annually.
→Coal and ash handling margins expected to improve as business mix shifts towards higher-margin ash handling.
→Overall, company expects sustained growth in operating profits and EPS backed by core business expansion and diversified segments.

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Fundraise plans

Yes

→Refex Industries has not taken approval for any immediate fundraising as of now; the INR1000 crore approval is only an enabling provision for future needs, allowing fast approval if required.
→Current funding for capex (around INR100 crores for fleet addition in ash handling and green mobility) is expected to come from internal accruals and working capital limits with lenders.
→The company is not currently seeking a new CFO, as the strong accounts team manages financial operations and fundraising strategy.
→Preferential allotment of warrants to Sherisha Technologies (promoter holding company) was done mainly to meet working capital requirements and for Refex e-Veelz procurement.
→No specific debt or equity fundraising plans announced at this time; focus remains on internal funding and managing working capital efficiently.

Order book

Yes

→Management confirmed having a good signed order available to support growth.
→Capacity increase to meet new orders will not be an issue; management is prepared for capex if required.
→The ash handling business is continuously growing, with ongoing efforts to acquire more contracts.
→They currently handle around 50,000 tons per day of ash and coal, with the capacity to do much more by adding fleet and resources.
→New client additions are expected to add about 7,000 to 10,000 tons per day within two to three months.
→The order book supports growth momentum quarter on quarter.
→No immediate large planned fundraise or capex beyond internal funding and working capital limits for fleet expansion outlined.

Capex plans

Yes

→Current capex is close to INR100 crore, covering both coal/ash handling fleet and electric vehicle (EV) fleet expansion.
→For doubling ash handling fleet capacity from 800 to around 1,500-1,600 vehicles, capex of approximately INR75-100 crore is expected if vehicles are owned.
→Majority of fleet vehicles are leased; aim to own no more than 10% of the fleet.
→No immediate large-scale capital raise planned; internal funding and working capital limits with lenders are being utilized.
→An enabling resolution for raising up to INR1000 crore is in place for future working capital needs but no immediate deployment planned.
→Capital deployed so far in ash and coal handling business is around INR400 crore (including approx. INR100-130 crore in fixed assets and INR270 crore working capital).
→Expansion is driven by growing ash handling opportunities and EV fleet scaling to 2,000 vehicles by March 2025.

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