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    ICE Make Refrig.

    ICEMAKE
    Capital Goods·12 Feb 2025
    Management Summary

    Ice Make Refrigeration reported a strong Q3 FY25 with 34% YoY revenue growth and 39% YoY PAT growth, driven by robust demand and new product verticals. However, net profit growth was moderated by increased operational and finance costs associated with new CAPEX. The company maintains an ambitious target of ₹500 crores topline for FY25 and ₹1,000 crores by 2028, with a focus on achieving 9.5-10.5% EBITDA margins.

    Highlights

    5

    • Q3 FY25 revenue from operations grew 34% YoY to ₹110.56 crores due to strong demand and sales.

    • EBITDA for Q3 FY25 increased 56% YoY to ₹6.89 crores.

    • PAT for Q3 FY25 grew 39% YoY to ₹2.81 crores.

    • The company's market valuation has grown nearly 1,000% over the past five years.

    • Current pending order book is robust at ₹167 crores, providing strong revenue visibility.

    Concerns

    4

    • Net profit growth was low in Q3 FY25 due to higher employee, finance, and operational costs.

    • 9-month EBITDA margin for FY25 stood at 7.21%, down from 8.57% in 9M FY24.

    • 9-month PAT for FY25 was ₹11.24 crores, a 5% YoY decline from ₹11.86 crores in 9M FY24.

    • New CAPEX fixed costs (recruitment, pre-marketing, material procurement) impacted margins in the current quarter.

    What Changed2

    vs Q4 FY25

    Guidance items15 → 9 (-6)Risks discussed5 → 3 (-2)
    Key financials

    Metrics

    8

    Periods

    2

    Q3 FY25

    4
    • Revenue from Operations
      ₹110.56 Cr
      YoY+34%
    • EBITDA
      ₹6.89 Cr
      YoY+56.0%
    • PAT
      ₹2.81 Cr
      YoY+39%
    • EPS
      ₹1.82

    9M FY25

    4
    • Total Income
      ₹299.6 Cr
      YoY+25%
    • EBITDA
      ₹21.59 Cr
      YoY+5%
    • EBITDA Margin
      7.2%
    • PAT
      ₹11.24 Cr
      YoY-5%

    Segment breakdown

    Cold Room
    62% Contribution to Sales
    Commercial
    12% Contribution to Sales
    Industrial Refrigeration
    4% Contribution to Sales
    Dairy and Project Business
    9% Contribution to Sales
    List

    Order Book

    high confidence

    Total Value

    ₹ 167 crores

    as of 2024-12-31

    quantified

    Inflow this qtr

    ₹ 8.8 crores

    Execution

    deliverable period is 6 months to 12 months

    Composition

    Mix8 products
    • Cold Room23.4%
    • Commercial18.0%
    • Industrial Refrigeration2.7%
    • Transport Refrigeration3.1%
    • Ammonia Refrigeration17.6%
    • Commercial Freezer0.9%
    • Continuous Panel5.7%
    • Project Business30.5%

    Share of order book by product

    "The company has a strong pending order book of ₹167 crores, with execution timelines ranging from 6 to 12 months, supporting revenue visibility."

    Source:
    Prepared remarks

    Capital allocation

    3
    high confidence
    CategoryHeadline
    Capex

    ₹150 crores

    Not yet finalized, considering cash flow generation and other sources.

    Debt

    Gross ₹81 crores

    Cost 8.1%

    Liquidity

    Liquidity disclosed

    Working capital utilization is around ₹35 crores, with previous short-term range of ₹20-25 crores.

    Guidance & targets

    9
    CategoryTargetPriority
    Revenue
    Topline
    ₹500 crore
    		High
    Revenue
    Topline
    ₹1,000 crore
    		High
    Revenue
    Continuous PUF panel topline
    ₹25-30 crore
    		High
    Revenue
    Commercial new products topline
    ₹12 crore
    		High
    Revenue
    Quick commerce revenue
    ₹50 crore
    		High
    Margin
    EBITDA Margin
    9.5% to 10.5%
    		High
    Margin
    EBITDA Margin
    9% to 9.5%
    		High
    Profitability
    PAT
    ₹20 crore plus
    		High
    Profitability
    New verticals (PUF panel & commercial) profitability
    profitable
    		High

    Stabilization of new plants

    next quarter (Q4 FY25)
    CurrentContinuous PUF panel production established since Nov/Dec, commercial freezer since Feb. Billing started.
    TargetGood performance in Q4 FY25, full stabilization.

    Why it matters

    Successful stabilization and ramp-up of new plants are crucial for realizing revenue and margin benefits from CAPEX.

    So it seems that in this fourth quarter, we will do good in continuous panel. And the commercial freezer, the new product, the second CAPEX, that too, you can say that it has been established since February.

    How to verify

    key_financials.metrics[label='Revenue from Operations (Q4 FY25)']

    Risks & concerns

    3
    RiskSeverity

    Increased operational costs impacting net profit

    Net profit growth was low due to higher employee cost, finance cost, and operational costs, particularly from new continuous panel and commercial freezer plants. — Management acknowledged

    medium

    Initial fixed costs of new CAPEX impacting margins

    The initial expenses for new CAPEX, including recruitment, pre-marketing activities, and material procurement, are impacting current EBITDA margins, but are expected to normalize as sales increase. — Management acknowledged

    medium

    PAT margin pressure due to depreciation and interest costs

    PAT margins are expected to remain under pressure until the impact of new loan interest and depreciation costs stabilizes, with a return to earlier levels projected after a year or two with sales growth. — Management acknowledged

    medium

    Q&A highlights

    7

    “So far we have invested Rs. 100 crore as you rightly said, in the CAPEX plan. And going forward we are having a CAPEX plan of about Rs. 150 crore plus. But as of now, our first target is to stabilize these two product business. And then we will review in the next financial year, let's say April or May, and we decide further to expand the other plan.”

    Analyst sought clarity on the status of the continuous PUF panel factory CAPEX and future expansion plans, which management confirmed are under review for funding.

    asked by Arnav Sakhuja

    3 min read6 chapters

    Detailed Narrative

    01

    Q3 FY25 Performance Overview

    Ice Make Refrigeration reported a strong Q3 FY25, with revenue from operations growing 34% year-on-year to ₹110.56 crores from ₹82.43 crores in Q3 FY24. EBITDA saw a significant increase of 56% year-on-year, reaching ₹6.89 crores compared to ₹4.41 crores in the prior year. Net profit (PAT) also demonstrated robust growth of 39% year-on-year, rising to ₹2.81 crores from ₹2 crores. Earnings per share (EPS) stood at ₹1.82 for the quarter.

    02

    9M FY25 Performance and Margin Trends

    For the nine-month period of FY25, total income grew 25% year-on-year to ₹299.60 crores from ₹238.85 crores in 9M FY24. EBITDA for 9M FY25 increased 5% year-on-year to ₹21.59 crores from ₹20.45 crores. However, the 9-month EBITDA margin saw a compression, standing at 7.21% compared to 8.57% in the previous year. Net profit (PAT) for 9M FY25 was ₹11.24 crores, a 5% decline from ₹11.86 crores in 9M FY24, primarily attributed to higher operational, employee, and finance costs.

    03

    Order Book and Revenue Visibility

    The company's current pending order book stands at ₹167 crores. This includes ₹39 crores in cold room, ₹30 crores in commercial, ₹4.5 crores in industrial refrigeration, ₹5.25 crores in transport refrigeration, ₹29.4 crores in ammonia refrigeration, ₹1.5 crores in commercial freezer, ₹9.5 crores in continuous panel, and ₹51 crores in project business. Management indicated that the deliverable period for orders typically ranges from 6 to 12 months, providing good revenue visibility for the upcoming periods.

    04

    CAPEX and New Plant Operations

    Ice Make has already invested ₹100 crores in its continuous PUF panel factory and has a further CAPEX plan of approximately ₹150 crores. The continuous PUF panel production commenced in November-December, with billing of ₹1.6 crores and orders worth ₹8.8 crores already secured. The commercial freezer plant became operational in February, with a designed capacity of 200 units per shift, currently producing 120 units per day and aiming for 200 by end of February. The company also plans to invest around ₹10 crores for land, building, and machinery for its south plant expansion, expected to be ready by Q1 of the next financial year.

    05

    Strategic Growth Initiatives and Market Opportunities

    The company is focusing on innovation, product diversification, and sales channel expansion. It has generated ₹45 crores in business from quick commerce in the current financial year, up from ₹11.5 crores last year, aiming for a 15% market share in this segment. US certification for exporting products is in its final stage and is expected by the end of the current financial year, which will open up new export markets. New product development, including water coolers, is underway, with commercial operations anticipated by Q1 FY26.

    06

    Financial Targets and Outlook

    Ice Make aims to achieve a topline of ₹500 crores for FY25 and a long-term target of ₹1,000 crores by 2028. The company is committed to maintaining an EBITDA margin between 9.5% and 10.5% for FY25, and expects 9-9.5% for the next financial year. PAT for FY25 is projected to be above ₹20 crores. The new continuous PUF panel and commercial product verticals are targeted to generate ₹25-30 crores and ₹12 crores in topline respectively for FY25, and are expected to become profitable in the next financial year.

    This is an AI-generated summary of a publicly available earnings call transcript. It is for informational purposes only and does not constitute investment advice, a recommendation, or an endorsement. inve.money is not a SEBI-registered investment advisor. Please consult a qualified financial advisor before making any investment decisions.