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    ICE Make Refrig.

    ICEMAKE
    Capital Goods·21 May 2025
    Management Summary

    ICE Make Refrigeration delivered its highest ever annual revenue in FY25, driven by a strong Q4 performance and robust order book. However, profitability was impacted by increased operational costs from new CAPEX and delays in project operationalization. The company is strategically expanding into new verticals and geographies, with ambitious revenue and margin targets for FY26 and beyond, supported by ongoing CAPEX and potential M&A activities.

    Highlights

    4
    • Achieved highest ever revenue of Rs. 480.42 crore in FY25, representing a 26.8% YoY growth.

    • Q4 FY25 revenue surged to Rs. 180.82 crore, demonstrating 64% QoQ and 27% YoY growth.

    • Maintained a strong pending order book of Rs. 171 crores, providing good revenue visibility for FY26.

    • Successfully completed US certification for selective models, enhancing export potential.

    Concerns

    4
    • EBITDA margin for Q4 FY25 compressed to 12.08% from 14.9% in Q4 FY24 due to incremental operational costs of new CAPEX.

    • Full year FY25 EBITDA margin declined to 9.04% from 10.92% in FY24 due to pre-planned operational expenses for capital expansion.

    • Net profit for FY25 decreased to Rs. 22.9 crore from Rs. 26.14 crore in FY24, impacted by CAPEX delays and incremental expenses.

    • Missed the FY25 revenue target of Rs. 500 crore due to civil work delays in new vertical plants.

    What Changed1

    vs Q1 FY26

    Guidance items9 → 15 (+6)
    Key financials

    Metrics

    10

    Periods

    2

    Q4 FY25

    5
    • Revenue
      ₹180.82 Cr
      YoY+27%QoQ+64%
    • EBITDA
      ₹21.85 Cr
    • EBITDA Margin
      12.1%
    • PAT
      ₹11.66 Cr
    • EPS
      ₹7.42

    FY25

    5
    • Revenue
      ₹480.42 Cr
      YoY+26.8%
    • EBITDA
      ₹43.44 Cr
    • EBITDA Margin
      9.0%
    • Net Profit
      ₹22.9 Cr
    • EPS
      ₹14.65

    Segment breakdown

    Cold Room
    50.2% Revenue Contribution (FY25)
    Commercial Refrigeration
    15.2% Revenue Contribution (FY25)
    Ammonia & Industrial Refrigeration
    12% Revenue Contribution (FY25)
    Transport Refrigeration
    7.4% Revenue Contribution (FY25)
    Projects (PUF panels & Commercial Freezers)
    12.5% Revenue Contribution (FY25)₹20 Cr Revenue (Q4 FY25)₹23 Cr Revenue (FY25)
    List

    Order Book

    high confidence

    Total Value

    ₹ 171 crores

    as of 2025-03-31

    quantified

    Composition

    Mix2 client types
    • Jammu & Kashmir Horticulture Department₹ 28.5 crores40.4%
    • West Bengal Government₹ 42 crores59.6%

    Share of order book by client type (derived from disclosed amounts)

    "The pending order book is strong and provides high revenue visibility for the coming financial year, including significant government and export orders."

    Source:
    Prepared remarks

    Capital allocation

    4
    medium confidence
    CategoryHeadline
    Capex

    ₹20 crores

    Debt

    Debt disclosed

    M&A

    Deal

    Other · pending regulatory · Consideration ₹NaN (undisclosed)

    Liquidity

    Undrawn ₹20 crores

    Company plans to increase fund limits by Rs. 20-25 crore to support aggressive business and working capital needs.

    Guidance & targets

    15
    CategoryTargetPriority
    Revenue
    Topline
    Rs. 1000 crore
    High
    Revenue
    Revenue Capacity (post-CAPEX)
    Rs. 800-850 crore
    High
    Revenue
    Revenue Target (existing plants)
    Rs. 650 crore
    High
    Revenue
    New Segments (PUF panel & commercial freezer) Contribution
    Rs. 175 crores
    High
    Revenue
    New Plants Revenue Target
    Rs. 150 crore
    High
    Revenue
    Export Business
    Rs. 25 crore
    Medium
    Revenue
    Chennai Plant Revenue
    Rs. 60 crore
    Medium
    Capacity
    PUF Panel (single shift)
    Rs. 225-250 crore
    Medium
    Capacity
    Commercial Freezer
    Rs. 130 crores
    Medium
    Capacity
    New Capacity Utilization
    Optimum level
    Medium
    Profitability
    EBITDA Margin
    9.5% to 10.5%
    High
    Profitability
    New Segments EBITDA Margin
    7% to 8%
    Medium
    Profitability
    Ammonia Segment Gross Margin
    10% to 14%
    High
    Debt
    Finance Cost
    Rs. 8-10 crores
    High
    Working Capital
    Working Capital Days
    around 6x
    Medium

    New CAPEX Revenue Contribution

    Next quarter (for progress updates), FY26 (for full year target)
    CurrentRs. 23 crore (Q4 FY25 contribution from new businesses)
    TargetRs. 150 crore (FY26 target from new plants)

    Why it matters

    Crucial for achieving FY26 revenue targets and improving overall margins as operational costs are currently impacting profitability.

    In new current financial year we have kept the target of Rs. 150 crore internally for new plant.

    How to verify

    key_financials.segment_breakdown[name='Projects'].metrics[label='Revenue']

    Risks & concerns

    5
    RiskSeverity

    Margin Pressure from New CAPEX Operational Costs

    Q4 FY25 EBITDA margin was 12.08% (vs 14.9% in Q4 FY24) and FY25 EBITDA margin was 9.04% (vs 10.92% in FY24) due to incremental operational costs of new CAPEX and pre-planned operational expenses for capital expansion.Management acknowledged

    medium

    Delay in New CAPEX Operationalization

    Civil work delays in new vertical plants led to missing the Rs. 500 crore FY25 topline target and compressed net profit for FY25.Management acknowledged

    medium

    Increased Inventory and Working Capital

    Inventory increased to Rs. 100 crore (from Rs. 60-70 crore) due to raw material procurement for new plants and advance payments from customers to avoid short supply, impacting working capital.Management acknowledged

    medium

    Competition in Visicooler Segment

    Acknowledged competition from Rockwell and Western companies in the visicooler segment, but management expressed confidence in their product quality and brand image.Analyst downplayed

    low

    Seasonality of New Products

    New products like visicoolers and chest freezers are in their first year and subject to seasonal demand (summer), though quick commerce demand is less seasonal.Analyst acknowledged

    low

    Q&A highlights

    8

    “For FY'26 it will be around Rs. 175 crores. ... In ammonia, we have a gross margin around 10% to 14%.”

    Clarified the expected revenue contribution and profitability of new segments (PUF panel, commercial freezer) and the ammonia segment for the upcoming fiscal year.

    asked by Arnav

    3 min read6 chapters

    Detailed Narrative

    01

    Strong Q4 and FY25 Revenue Performance

    ICE Make Refrigeration achieved its highest ever annual revenue of Rs. 480.42 crore in FY25, marking a 26.8% year-on-year growth compared to Rs. 379 crore in FY24. The fourth quarter of FY25 was particularly robust, with revenue reaching Rs. 180.82 crore, a significant 64% quarter-on-quarter and 27% year-on-year increase. This strong performance was attributed to team efforts, a healthy order book, and better execution, despite missing the initial Rs. 500 crore target due to election-related delays.

    02

    Margin Compression Due to CAPEX and Operational Costs

    Despite strong revenue growth, profitability faced headwinds. The EBITDA margin for Q4 FY25 was 12.08%, down from 14.9% in Q4 FY24, primarily due to incremental operational costs associated with new CAPEX. For the full year FY25, the EBITDA margin stood at 9.04%, a decrease from 10.92% in FY24, attributed to pre-planned operational expenses for capital expansion and delays in new CAPEX operationalization. Net profit for FY25 also saw a decline to Rs. 22.9 crore from Rs. 26.14 crore in FY24 due to these factors and increased interest burden.

    03

    Strategic Expansion into New Verticals and Markets

    The company is actively diversifying its product portfolio and market reach. New segments, including continuous PUF panels and commercial freezers, contributed approximately Rs. 23 crore in FY25, with a Q4 contribution of Rs. 20 crore. Management projects these new verticals to contribute Rs. 175 crore in FY26, with a potential capacity of Rs. 225-250 crore for PUF panels and Rs. 130 crore for commercial freezers at single shift. The company is also exploring the use of PUF panels for building insulation, identifying it as a larger market than cold rooms, and is actively engaging with building material traders and PEB manufacturers.

    04

    Robust Order Book and Future Growth Outlook

    ICE Make maintains a strong pending order book of Rs. 171 crore, which includes significant orders such as Rs. 28.5 crore from the Jammu & Kashmir horticulture department and Rs. 42 crore from the West Bengal government. This provides strong revenue visibility for FY26. The company has set an ambitious goal to achieve a Rs. 1000 crore topline by FY28. For FY26, the revenue target from existing plants is Rs. 650 crore, with an overall capacity of Rs. 800-850 crore after the completion of CAPEX.

    05

    Capital Allocation and Debt Management

    Current CAPEX for modernization and semi-automation, including investment in discontinuous panels, stands at Rs. 20 crore. A Phase 2 CAPEX of over Rs. 150 crore is planned for FY26-27, primarily for acquisition or collaboration opportunities rather than new land or plant construction. The Chennai plant, part of the first phase CAPEX (Rs. 10 crore), is expected to be operational by the end of the next quarter and generate approximately Rs. 60 crore in revenue. While debt may increase to support aggressive growth, the company aims to keep finance costs for FY26 between Rs. 8-10 crore and increase working capital limits by Rs. 20-25 crore.

    06

    Geographic and Segmental Performance

    In FY25, the cold room vertical remained the largest revenue contributor at 50.17%, followed by commercial refrigeration at 15.17%, and ammonia/industrial refrigeration combined at 12%. Transport refrigeration contributed 7.42%. Geographically, the West region accounted for 51% of revenue, while the East and South regions showed strong growth, contributing 18% and 14% respectively. The North contributed 11%. The company is targeting Rs. 25 crore from export business in FY26, bolstered by recent US certification for selective models and local employee presence in Nepal.

    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.