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Ice Make Refrigeration Limited Q4 FY24 Earnings Call Summary
Company Performance Highlights • Market Valuation Growth: • 88% increase over the past year • 40% increase over five years • Market capitalization reached Rs. 1,000 crores • Dividend Increase: • Raised to Rs. 2 per equity share • Earnings Growth: • 39.4% annual growth in earnings • Revenues grew at 25.7% per year • 23% revenue increase and 65% net profit increase in Q4 FY24
Financial Performance • Q4 FY24 Results: • Total income rose by 22.6% year-on-year to Rs. 140 crores • EBITDA margin improved to 14.93% • Net profit surged by 65.6% to Rs. 14.30 crores • Full Fiscal Year Results: • Total income grew by 21% to Rs. 379 crores • EBITDA increased by 24.53% to Rs. 41.39 crores • Net profit up by 26.2% to Rs. 26.25 crores
Business Developments • New Orders and Backlog: • Strong order backlog of over Rs. 122 crores • Expansion in North India and investment in new product development • Market Growth: • Cold chain market projected to grow due to rising demand in dairy, frozen foods, and healthcare
Management Insights • Future Growth and Margins: • Comfortable debt position with target EBITDA margin of 9.5% to 10.5% • Focus on topline growth may temporarily affect margins • Business Mix: • 16% from Ammonia, 43% from Cold Rooms • Emphasis on premium verticals for significant sales contributions
New Opportunities • Data Center Cooling Solutions: • Potential expansion into this market discussed • Plant Utilization and Revenue Potential: • 80% utilization rate, potential topline of Rs. 450 crores excluding Ammonia • New production lines expected to add Rs. 100 to 145 crores to topline
Sector Contributions and Market Dynamics • Revenue Sources: • Ice Cream and Dairy: 30-40% • Other sectors (Food Processing, Pharma, E-commerce): 15-20% each • Impact of Competitors: • New competitors like Hocco and Havmor creating growth opportunities
Strategic Considerations • Quick-Commerce Impact: • Variability in Cold Room requirements based on dark store sizes • CAPEX Decision-Making: • Focus on return on equity (ROE) and market demand • Electricity Costs: • Not a significant burden; logistics improvements are more beneficial
Conclusion • Commitment to Growth: • Aim for a topline of Rs. 1,000 to 1,100 crores by 2027 • Gratitude to Participants: • Call concluded with appreciation for participant engagement.
Ice Make Refrigeration Limited Q3FY24 Earnings Call Summary
Call Overview • Date of Earnings Call: February 16, 2024 • Announcement Date: February 20, 2024 • Focus: Financial performance and strategic outlook for Q3FY24 (ended December 31, 2023)
Key Executives • Mr. Aryan Rana: Introduced the call and emphasized customer satisfaction and innovation. • Mr. Chandrakant P Patel (Managing Director): Reported strong revenue growth but noted a decline in net profit and margins. • Ankit Patel (CFO): Detailed financials, highlighting a 23% increase in total income but a drop in EBITDA and net profit.
Financial Highlights • Total Income: Rs. 84.52 crores (23% increase) • Strategic Focus: Innovation and expansion with a target of Rs. 1,000 crores topline in coming years. • Anticipated Margin Impact: Short-term challenges expected.
Project Updates • Continuous PUF Panel Project: Civil work underway, machinery ordered. • Chennai Project: Construction to begin soon. • Kolkata Project: Completed and will contribute to Q4 results. • Notable Orders: Secured orders totaling approximately Rs. 9.75 crores.
Market Outlook • Focus on resilience, innovation, and sustainability. • Anticipated increased demand as summer approaches. • Investment in new technologies and efficient management practices.
Investor Q&A Highlights • Sales Target: Rs. 500 crores next year, supported by Continuous Panel project. • Debt Profile: Manageable, with long-term debt expected below Rs. 60 crores. • Revenue Guidance: Projected at Rs. 400 crores, but more realistically Rs. 360-380 crores. • Chennai Plant Timeline: Construction to take about nine months, production expected in FY25.
Ammonia Contracts • Typical size: Rs. 50 lakhs to Rs. 25 crores, average order size Rs. 7-8 crores. • Current order book contribution: Rs. 35-40 crores, execution may not occur in Q4.
Growth Projections • Topline growth of 20% feasible, estimating Rs. 370-380 crores for the year. • Gross margins around 28-30%.
CAPEX Plans • Planned Rs. 200 crores CAPEX over three years for various projects and expansions. • Investments include commercial filters and project automation.
Export Ambitions • Focus on domestic markets with exploration of opportunities abroad, particularly in Africa and with US OEMs. • Marketing strategies and participation in exhibitions planned.
Industry Insights • PUF panel industry valued at Rs. 7,000 crores. • Revenue potential at full capacity: Rs. 200 crores (single shift), Rs. 300-350 crores (double shift). • EBITDA margins for PUF panels estimated between 8.5% and 9.5%.
Conclusion • The call concluded with gratitude to participants and encouragement for further inquiries.
Ice Make Refrigeration Limited Q2 FY24 Earnings Call Summary
Key Achievements • Entered INR 1,000 crores market capitalization club. • 84% increase in valuation over six months.
Financial Performance • Q2 FY24 Revenue: Rs. 77 crores (14.43% growth). • Net Profit: Rs. 4.47 crores (3.45% decline). • First Half FY24 Revenue: Rs. 156 crores (18% increase). • Net Profits: Rs. 9.81 crores (27% rise).
Strategic Plans • Strong order book of Rs. 152 crores. • CAPEX plan of Rs. 200 crores over three years. • Target turnover: Rs. 500 crores by 2024-25 and Rs. 1,000 crores by 2027-28.
Market Insights • India's refrigeration market projected to exceed ₹2.86 lakh crores by 2027. • Rising demand in the cold chain industry for fruits, vegetables, and dairy products. • Commitment to innovative cold chain solutions to reduce food loss.
Q&A Highlights • CAPEX Concerns: Initial debt financing with potential equity infusion later. • CAPEX Allocation: • Continuous panel production. • Land acquisition in Tamil Nadu. • Expansion of subsidiary IceBest. • Consumer Air Conditioning: Currently focused on refrigeration only. • Export Strategy: Aiming for ₹14 crores in FY24 with significant orders received. • Revenue Potential: • ₹200 crores expected from a single shift of continuous panel production. • Breakdown of CAPEX: • 60 crores for continuous panel project. • 9-10 crores for Chennai subsidiary relocation. • 2 crores for Kolkata pilot project. • Potential 25 crores for future automation projects. • Working Capital Needs: Additional 15 crores due to aggressive expansion.
Conclusion • Management expressed confidence in strategic initiatives and gratitude to participants.
Ice Make Refrigeration Limited Earnings Conference Call Summary (August 18, 2023)
Market Performance • Significant Growth: • 57% increase in market value since last call. • 188% increase over the past year. • Market Capitalization: Surpassed Rs. 800 Crore. • Order Book: Strong order book of Rs. 125 crores. • Largest Work Order: Secured from West Bengal Livestock Development Corporation valued at Rs. 65.48 crores.
Financial Highlights • Revenue Growth: 22% increase in Q1 FY24, reaching Rs. 79.31 crores. • Net Profit Growth: 73% increase, totaling Rs. 5.35 crores. • EBITDA Margin: Improved to 10.52%. • Focus Areas: Growing demand for energy-efficient and eco-friendly refrigeration systems.
Q&A Session Insights • Margin Ranges: • Commercial refrigeration: 30-34% • Cold Room: 28-32% • Industrial: 28-31% • Transport refrigeration: 15-19% • Ammonia: 10-12% • New CAPEX Project: Expected to generate ₹200 crores annually; commercial production by mid-next year. • PUF Panels: Essential for large-scale refrigeration; focus on high-margin products.
Government Contracts and Future Opportunities • Optimism for Government Projects: Potential for future contracts, though delays are common. • Current Business Growth: Existing business growing at 30% annually; conservative net profit margin of 3-4% for government projects.
Operational Strategies • New Manufacturing Unit: Planned in West Bengal; potential relocation in South India. • Inventory Management: Key to achieving 30% annual growth target. • Revenue Split: • 47% from cold rooms • 4% from industrial • 21% from commercial • 12% from refer vans • 15% from ammonia.
Future Projections • Growth Rate: Anticipated growth of 25-30%. • Revenue Projections: Over 500 crores by FY25; aiming for 1000 crores in the next 4-5 years. • Competition: Clarified that competitors like Blue Star and Voltas are not currently involved in large projects.
Conclusion • Confidence in Strategic Initiatives: Management expressed optimism about meeting growth targets and appreciation for stakeholder support.
Ice Make Refrigeration Limited Earnings Conference Call Summary (June 2, 2023)
Company Overview • Established in 1993 • Market cap over Rs. 500 crores • New manufacturing unit in West Bengal
Financial Highlights • Q4 FY23 Performance: • Revenue: Rs. 114 crores (47.93% YoY increase) • EBITDA: Rs. 12.88 crores (43.6% growth) • Net Profit: Rs. 8.63 crores (56% YoY increase) • Stable EBITDA margin at 11.3% • Fiscal Year 2023: • Total income: Rs. 313 crores (51.5% increase) • EBITDA: 118.8% increase
Growth Strategy • Targeted annual growth rate: 25-30% • Focus on market expansion, product innovation, and operational efficiency • Robust order book of Rs. 68 crores • New Continuous PUF Panel project launching in April 2024
Analyst Inquiries • Growth Projections: • Optimism for over 30% growth in refrigeration and cold chain sectors • Factors: Removal of bottlenecks, geographical expansion, increased market share • Continuous Panel Project: • Shift from outsourcing to local manufacturing due to high demand • Expected revenue generation of over Rs. 200 crores at full capacity
Operational Insights • Seasonality acknowledged, with higher sales in the first half of the year • Stability in raw material prices expected to maintain profit margins • Competitive landscape challenges in the South market
Future Outlook • Anticipated growth of 20-30% in existing verticals, especially in the commercial sector • Potential for automation in labor-intensive processes, particularly in new product lines • Current capacity utilization at approximately 70%, with potential topline of Rs. 450 crores without additional CAPEX
Conclusion • Management expressed confidence in strategic initiatives and commitment to sustainable growth.
Ice Make Refrigeration Limited Q3FY23 Earnings Call Summary
Overview • Date: February 21, 2023 • Focus: Financial results for Q3FY23 (quarter ended December 31, 2022) • Moderated by: Lizzan • Key Management: • Chairman: Chandrakant Patel • CFO: Ankit Patel • Vice President: Nikhil Bhatt
Financial Performance • Revenue Growth: • 36% increase year-on-year • Consolidated revenue: Rs. 66.82 crores (up from Rs. 48.99 crores in Q3FY22) • Profitability: • 248% increase in profitability • Net profit: Rs. 5.17 crores • EBITDA: • Increased to Rs. 7.46 crores • EBITDA margin: 11.16% • Year-to-Date Performance: • Total revenue for first nine months: Rs. 199 crores (53.60% growth)
Expansion Plans • New subsidiary in West Bengal for cold room manufacturing (IceBest, 60% stake) • Initial investment: Rs. 2 crores • Focus on consistent growth of 25-30% • Development of freeze dryer and Heat Pump Dehydrator products
Market Insights • Indian cold chain industry projected to grow from $19.6 million (2020) to $36 billion by 2024 (CAGR of 16%) • Addressing challenges of inadequate cold chain infrastructure to reduce food loss
Q&A Highlights • Production Plans: Expected to start by Q1 2025; cautious expansion strategy in East India • Investment Strategy: Modest current investment; market performance assessment before further commitments • Order Book Growth: Acknowledged slowdown from e-commerce but optimistic about diverse segments • West Bengal Project: Management optimistic about scaling operations • Funding for New Plant: Rs. 50 crore project, financed through term loans at 7.85% interest
Conclusion • Management expressed gratitude to participants and wished them well for the upcoming holiday.