Ice Make earnings Call | Key takeaways from the Q&A Session

>CAPEX & Expansion

-CAPEX so far: ₹100 crore invested in new plants (PUF Panel & Commercial Freezers)

>Future CAPEX: ₹150+ crore being evaluated; final decision in Q1 FY26 based on cash flows

>South Plant Expansion: New facility expected by Q1 FY26, budgeted at ₹10 crore

🔹 New Product Vertical Updates

>PUF Panel Plant:

Commercial billing of ₹1.6 crore already done; ₹25–30 crore expected this FY

Long-term revenue potential: ₹250–280 crore annually

Break-even at ₹30–35 crore

>Commercial Freezer Plant:

Full-scale operations started in February; ₹12 crore targeted this FY

Full capacity: 200 machines/day; break-even at ₹45–50 crore

🔹 Margins & Profitability
Q3 EBITDA margin drop due to fixed costs from new CAPEX (recruitment, labor, pre-marketing)

EBITDA Guidance: 9.5–10.5% by FY26; expecting 9%+ for FY25

PAT margins under pressure from depreciation and interest; normalization expected by FY27

Employee Costs: ₹7 crore/quarter now stabilized

Depreciation: ~₹2 crore/quarter, to decline gradually

🔹 Order Book & Demand Outlook
Pending Order Book: ₹167 crore; execution largely expected in Q4 FY25

Order Breakdown by Vertical:

>Cold Room: ₹39 crore

>Commercial Refrigeration: ₹30 crore

>Ammonia: ₹29.4 crore

>Transport Refrigeration: ₹5.25 crore

>Industrial: ₹4.5 crore

>Continuous Panel: ₹9.5 crore

>Commercial Freezer: ₹1.5 crore

>Project Business: ₹51 crore

🔹 Quick Commerce Opportunity
FY25 revenue from Quick Commerce: ₹45 crore (up from ₹11.5 crore in FY24)

Targeting 15% market share; expects 2,000 dark stores to be set up in India

Estimated ₹900–1,000 crore opportunity over next 2–3 years

🔹 Exports
US Certification for refrigeration systems near completion

Strong potential seen due to favorable shift from China to India for sourcing

🔹 Working Capital & Debt
Working capital utilization: ~₹35 crore

Long-term debt: ₹48 crore at 8.1% (HDFC Bank)

No immediate debt repayment planned due to low cost and strong internal accruals

Business model includes 20% advance for cold rooms, helping reduce receivable risk

🔹 Strategic Focus
Expand dealer networks

Gain market share in new verticals before focusing on price hikes

Margin expansion focus post-₹1,000 crore topline milestone

Please click to view the call transcript.
https://nsearchives.nseindia.com/corporate/ICEMAKE_23052025155656_TranscriptNSE.pdf