Q1 2027 Ice Make Refrigeration Ltd Earnings Call
Speaker #1: Quarter-ended, June 30, 2026. We are pleased to have with us investors and analysts, shareholders, and media representatives from another stakeholder. Ice Make is an established provider of industrial and commercial refrigeration and cold-chain solutions, with offerings across cold rooms, commercial and industrial refrigeration, transport refrigeration, ammonia systems, and PUF panels, cold storage infrastructure, and allied solutions.
Speaker #1: The company's sectors include The company's sectors include food processing, agriculture, pharmaceuticals, healthcare, hospitality, retail, dairy, seafood, and logistics. The company has also created significant value for stake shareholders over the years.
Speaker #1: The stock delivering over 3,000% returns over the past 5 years. The company enters this phase with a strong revenue momentum and an important strategic development.
Speaker #1: The proposed ₹180 crore investment by Japan's Galileo Holdings Co., Ltd. and the proposed strategic joint venture. So before we begin, please note that certain statements made during this interaction may be forward-looking and are subject to risk, uncertainties, and assumptions.
Speaker #1: Actual results may differ; participants are advised to refer to the company's regulatory filings for detailed information. So we have our management team with us, Mr. Chandrakant P.
Speaker #1: Patel, Chairman and Managing Director, Mr. M. Srinivas Reddy, Chief Executive Officer, Mr. Nikhil Bhat, at, Vice President of Strategy, Mr. Ankit Patel, Chief Financial Officer, Mr. Mandar Desai, Company Secretary and Compliance Officer.
Speaker #1: The format for today's session is: the management will cover Q1 FY27 performance, financial priorities, and business strategy, followed by an interactive Q&A and closing remarks.
Speaker #1: So in the opening, we'll have our CEO, Mr. M. Srinivas Reddy. Followed by Financial Performance by our CFO, Mr. Ankit Patel. Business and Strategy update by our VP, Mr. Nikhil Bhat.
Speaker #1: Investor and this then we'll have Q&A session, and finally we'll have closing remarks by our CMD, Mr. Chandrakant P. Patel. And both of thanks by the company secretary at the end of the conference.
Speaker #1: This conference call is being recorded. Questions are welcome in Hindi or English, with preference to Hindi, we prefer that you ask questions in Hindi.
Speaker #1: For verbal questions, please use the microphone icon which is seventh from the left. Written question may be submitted through the question on question icon which is you see the question fifth from the right if you look at.
Speaker #1: Please keep your questions concise and limited, limit yourself to two initially so that more participants can be accommodated. With that, let us begin. I invite Mr. M.
Speaker #1: Srinivas Reddy, Chief Executive Officer of Ice Make Refrigeration, to share his opening remarks. Over to you, Mr. Reddy.
Speaker #2: Thank you, Aryan. Good evening, ladies and gentlemen. Thank you for joining Ice Make Refrigeration's Q1 FY27 earnings interaction. Q1 FY27 began with a strong revenue momentum, consolidated revenue from operations increased about 60% year on year, to ₹178.88 crores, from ₹111.50 crores in Q1 FY26.
Speaker #2: This builds on FY26 total revenue of ₹668.20 crores. Which is the company's highest annual revenue to date. Growth was supported by healthy demand across refrigeration and cold-chain segments, with newer categories such as chest freezers and continuous panels gaining excellent market acceptance.
Speaker #2: The key issue for us now is the profitability. Higher commodity and raw material costs together with investments made to build future capacity and capabilities impacted margins in the quarter.
Speaker #2: Our immediate focus is therefore on capacity utilization, operating efficiency, product mix, and cost management. As the assets and capabilities built over recent quarters are utilized more efficiently and effectively, we expect operating leverage to improve coming going forward.
Speaker #2: A significant development is the proposed ₹180 crore strategic investment by Galileo Holdings of Japan. We view this as a strategic partnership that can combine Galileo's excellent technology and global expertise with Ice Make's manufacturing capabilities and Indian market presence, and of course execution strength.
Speaker #2: The proposed ₹60-40 joint venture with Galileo Holdings 60% and Ice Make Holdings 40% will initially focus on commercial refrigeration products such as the commercial upright and table refrigerators.
Speaker #2: The proposed capital will also support capacity expansion and modernization, JV center of excellence and development and testing laboratories, balance sheet strengthening and selected growth opportunities.
Speaker #2: Our approach remains disciplined; the objective is profitable, sustainable, and scalable growth. Supported by strong execution, better utilization, improved margins, and careful capital allocation. Without now, I hand over to our CFO, Mr. Ankit Patel, for the detailed financial review.
Speaker #2: Thank you.
Speaker #1: Thank you, Reddy, sir. Good evening, everyone. I will focus on key financial numbers of Q1 FY27 and company's financial priorities. Consolidated revenue from operations for the quarter was ₹178.88 crores, up by ₹60.4% year on year, from ₹111.50 crores.
Speaker #1: Profitability however remained under pressure. EBITDA was ₹3.09 crores, versus ₹4.53 crores, in Q1 FY26. With EBITDA margin at 1.7% compared to 4.1%. Profit before tax was a loss of ₹2.23 crores, versus ₹1.84 crore loss previously.
Speaker #1: While profit after tax was a loss of ₹1.65 crores, versus ₹1.47 crores in corresponding period. The main margin pressure was elevated mainly due to commodity and raw material prices, and the cost related to investment in capability and organizational capability.
Speaker #1: Financially, our priority is to convert the strong top-line momentum into a healthier profitability. We are working on capacity utilization, cost discipline, product mix, and operating efficiencies, with high utilization expected to supporting operating leverage.
Speaker #1: Our proposed Galileo transaction is at ₹180 crore investment, is proposed through a preferential issue, with an additional ₹10 crore proposed to be raised from other investors.
Speaker #1: The funds are intended for capacity expansion and modernization, the proposed JV completion of corporate office and center of excellence development and testing laboratories, repayment of certain borrowings, and selective inorganic growth.
Speaker #1: The capital deployment will be phased and disciplined with a focus on strengthening the operating platform and generating sustainable returns. The transaction remains subject to applicable approvals and customary closing conditions.
Speaker #1: In conclusion, our three financial priorities are sustained revenue momentum, improved margins, and operating cash generation. And the deployed capital currently while strengthening the balance sheet.
Speaker #1: Now I hand over to Mr. Nikhil Bhatt, Vice President Strategy, for the business and strategy update. Thank you.
Speaker #3: Thank you, Ankit ji, and good evening, everyone. I will focus on the business mix, market opportunities, and the strategic directions for the next phase of growth.
Speaker #3: Ice Make is building a broader refrigeration solutions platform across commercial refrigerations, cold chain, food processing, hospitality, pharmaceutical, retail, and industrial applications. Newer categories such as chest freezer and continuous panels are also gaining traction.
Speaker #3: Our strategy has four priorities. First is capacity to expand and modernize manufacturing capability to support demand and improve service levels. Products broaden the portfolio and build sustainable positions in attractive segments.
Speaker #3: Technology strengthens product development through the center of excellence and development and testing laboratories. And fourth is the market reach, so deepen our presence across India's refrigeration and cold chain ecosystems.
Speaker #3: As mentioned by Mr. Reddy earlier, the proposed Galileo partnership is strategically important because it combines complementary strengths; Galileo's refrigeration technology, product development, and manufacturing expertise with Ice Make's Indian market presence, manufacturing platform, customer relationships, and execution capabilities.
Speaker #3: We expect the benefit to build progressively as investment, product development, manufacturing setup, and market development take place. Investors should therefore view the initiative with a long-term perspective.
Speaker #3: The objective is not only simply to add capacity or products, but to build businesses capable of generating sustainable revenue, stronger margins, and attractive returns on capitals.
Speaker #3: Looking to the order book on hand is about 220 crores plus; we are quite confident to achieve our goal for this current financial year.
Speaker #3: Thank you. I will hand the session back to the Aaryan for the investor and analyst question and answer.
Speaker #1: Hello. Can we start the Q&A now?
Speaker #2: Yes.
Speaker #1: Yes, yes. We can start. Okay. So for Q&A, you can just, you know, this icon, there is this icon which is mic icon, microphone icon.
Speaker #1: You can just put there and we will take your question. We'll unmute you, okay? So we have first question from Kanishka Gupta. I will just unmute you, sir.
Speaker #1: You can go ahead with your question. Kanishka ji? Kanishka ji, are you there? You can also type your questions in case if you have any question.
Speaker #1: I will just read one question that I have. From investor, and that is, one second, I will just give it to you. Let the question go.
Speaker #1: So the first question is from one of the investors from Ahmedabad. He's saying, "Company has reported a revenue of 178 crore in Q1 FY27.
Speaker #1: That is 60% growth from FY26 Q1. So if I take this revenue split in FY26 percentage wise, for each quarter and do a rough mathematical calculation, the FY27 revenue comes 2000 crore.
Speaker #1: Can you confirm if this is possibly a possibility while maintaining EBITDA level of 8 to 8.5%? For simplicity of understanding, if you can sir, over to you.
Speaker #2: Thank you.
Speaker #1: Did you get my question, sir?
Speaker #2: Yes.
Speaker #1: So what he's saying, actually, if FY27 Q1, if you have 178 crore, since Q1 normally contributes 16 to 16.7% of the full year revenue, can we reverse calculate the implied full year revenue for FY27?
Speaker #2: Yeah, the question is valid, of course. We have delivered excellent growth of 60% in Q1, but what investor has to note is that the last year Q1 base was actually low in terms of the new businesses.
Speaker #2: So if you look at the chest freezers and continuous panel business, for the first year from them, so the base was very low for them.
Speaker #2: So obviously we posted excellent growth in the low base. Going forward, our guidance for the year continues to be the same as stated before.
Speaker #2: But having said that, we will look at every possibility and opportunity to maximize the revenue.
Speaker #1: Okay.
Speaker #2: As for the EBITDA guidance, he's concerned. Currently, Q1 we are impacted on the profitability. We are giving a guidance of around 6 to 6.5% for the all of the year this year.
Speaker #1: All right, sir. Okay. So the question from Kanishka is, first, despite the price increase of 10 to 11%, that management had indicated, and the fact that a substantial part of the distribution and channel investments were already made during FY26, Q1 FY27 EBITDA margins came in at only 1.7%.
Speaker #1: Would you help us understand the key factors behind this significant margin pressure in Q1, apart from raw material prices, largely offset by our price hikes?
Speaker #1: This is the question from Kanishka.
Speaker #2: Mainly the issue was related to raw material price hike only.
Speaker #1: Okay.
Speaker #2: Couple of times we have increased our prices, but sudden after increase in our price, again due to war and dollar strengthening, there are some other impacts as well.
Speaker #2: So our peers has increased our prices more than couple of times, maybe three times, but we have just raised our prices in two times.
Speaker #2: There are few verticals where we have not fully transferred that prices being our new verticals. So we feel that in upcoming time, from at two, we feel that the impact of our price division and margin improvement will start showing.
Speaker #2: And for the whole year, we feel that EBITDA margin somewhere around six, six and a half percent, we are comfortable to deliver this financial year.
Speaker #1: Okay. All right. So the second question is from Swathi Madnani, and her question is, can you share the vertical-wise revenue bifurcation and how much the new verticals have contributed to this quarter?
Speaker #2: Right. The cold room contributed around 43%. Industrial refrigeration around 3%. Commercial, traditional commercial refrigeration 7%. Transport refrigeration similar to 7%. Ammonia in project combinedly around 5%.
Speaker #2: Continuous panel around 17%. And commercial freezers around 19%.
Speaker #1: Okay, sir. So another question from Kanishka Gupta is, so he's asking whether what is our key rationale behind reducing EBITDA margins, guidance, instead of again expecting a price hike to protect EBITDA margins?
Speaker #2: Look, the main impact was due to war. I mean, war की वजह से हर कंपनी में हमारे peers में भी margins के ऊपर impact है। हमने भी price hike किए हुए थे, लेकिन नए vertical जो हमने शुरू किए हुए थे, dealer network expansion, उसमें हमारे नए dealers को भी थोड़ा एक ही साल में back to back price hike हम थोड़ा वैसा भी सोच रहे थे कि war का impact है, वो इतना लंबा नहीं चलेगा। थोड़ा सा हमने उसके लिए waiting period भी रखा, but now we feel that कि ये war वाली situation continue रहेगी, तो अभी जो हमारे peers ने भी price hike किया हुआ है, तो we are also in process.
Speaker #2: और H2 में हम जैसे ही price hike करेंगे, तो margin है जो improve हो जाएगा. For the ये dollar की वजह से भी हमारा जो indirect import होता है, around 22, 25% के आसपास हमारा जो total purchase composition है, that is consist of import.
Speaker #2: Indirect material, indirect import as well. तो उनका जो impact है, वो भी इस बार high रहा हुआ है, somewhere around 50 lakhs के आसपास का foreign exchange fluctuation loss भी हमने इस बार book किया हुआ है। तो margin हम एक बार pass on करेंगे, क्योंकि हमारे पास sample order book है। As of now, हमारे पास 222 करोड़ की pending order book है। तो we have sample of orders हमारी funnel भी काफी strong है, तो हमें नहीं लगता कि हमारा top line grow होगा और एक बार margin pass on हो जाएगा.
Speaker #2: तो I don't feel कि हम margin deliver नहीं कर पाएंगे. But whole year में, क्योंकि हमने future-ready capability built up की हुई है, तो ये वाले financial year में, क्योंकि ये वाला quarter और maybe upcoming quarter, उन दोनों के जो performance है, उसको set off करने के बाद, we are saying we will gain somewhere around six, six and a half percent EBITDA.
Speaker #2: तो ये दो साल को average out करने के बाद, हम full साल में छह, साढ़े छह percent का EBITDA ले आएंगे.
Speaker #1: Correct. ठीक है. The next question is from Kostov Iole from BlueBridge Capital. So what he's saying that I have three questions. One is on margin.
Speaker #1: You are implemented 10 to 11% price increases. Yet zero Q1 margins declined. How much of the raw material inflation has been passed through, and what is the current pricing lag?
Speaker #1: That is one. On Gillilay JV, Ice Make is investing 35.3 crore for its 40% stake. What revenue EBITDA and ROC are you targeting from the JV over the next three years?
Speaker #1: And third question is on order book. What is the current order book and Q1 order book inflow versus the earlier rupees 230 to 237 crore order book in the last quarter, Q4?
Speaker #1: And rupees 50 to 60 crore monthly run rate? So these are the three questions from Kostov.
Speaker #2: Actually, जो price hike की हमने बात की, हमने 11% के आसपास में selective में price बढ़ाई है, लेकिन overall जो impact था, from industry, was somewhere around 15 to 18%.
Speaker #2: Still, we lagged somewhere around six, six and a half percent के आसपास का जो price hike है, वो हमने pass on नहीं किया हुआ है.
Speaker #2: मतलब I am talking about overall, हमारे products mix की. तो वो margin हमने अभी भी pass on नहीं किया.
Speaker #1: Hello?
Speaker #2: जो दूसरा question था regarding that investment in Galilee. तो Galilee।
Speaker #1: आपकी आवाज़ आ रही है? Hello? अंकित जी, आपकी आवाज़ आ रही है properly? आप mute पे चले गए, mute हो गया आपका, yeah.
Speaker #2: हाँ, Galilee में हम लोग 40% हमारा stack है, उसके against हम लोग 38, 40 करोड़ का investment है। Actually, business plan है, production ही 18 महीने के बाद शुरू होंगे.
Speaker #2: Margin आने आते में एक साल और लगेगा. तो ढाई-तीन साल के बाद है actual हम लोग उनके साथ में बैठ के थोड़ा और exact product projection करके हम बता सकते हैं, अभी थोड़ा मुश्किल है exact figure बोलना.
Speaker #2: लेकिन profitable business है India में, ये product का काफी vacuum भी है, India में manufacturing capacity इतना ज्यादा नहीं है जो market की demand के मुकाबले.
Speaker #2: तो हमें confidence है कि हमारे existing vertical को ये complement करेगा, दोनों को वैसा वर्षा है, दोनों को support है। हमारे partner के लिए कहीं experience है इस product को लेकर segment का, तो उसको करके ही हम लोग exact figure आपको बता सकते हैं। आवाज़ नहीं?
Speaker #1: Third question कौन सा था, Aryan जी? आवाज़ आ रही है, आ रही है। What was the third question, Aryan जी? तीसरा question था सर, on the this thing, funding order book idea.
Speaker #1: Order book, yes. What is the current order book and Q1 order inflow versus the earlier 2037 crore order book and rupees 50 to 60 crore monthly run rate जो आपने शायद last time बोला था, उसके हिसाब से पूछा।
Speaker #2: अभी हमारी total funding order book 222 करोड़ की है, शुरू में 39 करोड़ है, traditional commercial में 29 cr है, industrial refrigeration में 5 cr है, transport refrigeration में 4 cr है, ammonia में 87 करोड़ है, project 45 करोड़ है, commercial freezer में we have हमारे dealer का estimate होता है, but अभी as of now हमारे पास दो-तीन करोड़ के आसपास के pending orders हैं, continuous panel में 11 करोड़ की pending order book है। Total मिला के 222 करोड़ है।
Speaker #1: Okay. ठीक है सर, 222 करोड़ की top line अभी है, और एक और question उनका ये है कि given you have taken fewer price hikes, then peers, have you seen any meaningful market share gains?
Speaker #1: आपका कुछ market share बढ़ा है उसमें, जब ये आपने ये कुछ fairs price hike किए हैं? Also, what is your expectation for the raw materials cycle over the next two-three quarters में?
Speaker #1: Raw material की cost कैसी रहेगी, ये पूछ रहे हैं Kostov जी। अंकित जी?
Speaker #2: सर, just refresh once.
Speaker #1: Hello?
Speaker #2: Yes sir.
Speaker #1: Aryan जी, direct participants का question क्यों नहीं आ रहा है? Unmute yourself. Maneesh जी? आप अपने वहाँ से करिए ना।
Speaker #2: यहाँ से unmute है, यहाँ से एक मिनट।
Speaker #1: मुकेश जी, आप देखें, एक call unmute नहीं हुआ यहाँ से, तो मैंने कर दिया।
Speaker #2: सर, एक बार refresh करने को बोल दीजिए ना।
Speaker #1: आप refresh कर लीजिए एक बार, Maneesh जी, एक बार आपका system एक बार से। शायद उसमें कुछ हुआ होगा। तब तक आप type कर लीजिए question, किसी और का होगा तो I'll just take that one.
Speaker #2: आप जो question को translate करें, वो हिंदी में करके दे दो।
Speaker #1: अच्छा, अच्छा, ठीक है, ठीक है, ठीक है। तो आपने जो है, दो price hike किए थे पिछले उसमें, जबकि आपके जो peers हैं ना, तीन बार किया था, so did you क्या आपका market share कितना बढ़ा, and what is the our outlook आपकी क्या है raw material prices को लेकर के, आगे के दो-तीन quarters में?
Speaker #1: ये सवाल है उनका।
Speaker #2: So it is difficult to quantify the market share gains, but otherwise the demand was pretty strong for all categories that we address. But I can comfortably say that we have made good strides in the continuous panels as well as chest freezer business.
Speaker #2: So that these two businesses have grown significantly while we maintained the market share and even a better, of course, by a few basis points in the cold room and other segments that we are operating.
Speaker #2: Raw material prices we expect that the situational volatility will continue over the next quarter. I mean, this Q2 and some rub-off on the Q3 as well.
Speaker #2: So we don't see any hope that the raw material will become stabilized or the volatility will come down. We don't expect any of that possibility right now because you all know better, you share my opinion that the global uncertainty continues as ever.
Speaker #1: Absolutely. So we are now half a way through Q2 with the winter season approaching. Could you give us some sense of the demand environment so far and the outlook for the upcoming winter season?
Speaker #1: How should we think about seasonality in H2? This is a question from Swathi Madnani.
Speaker #2: Swathi is a good question. I think we have few verticals, business verticals, which are of season agnostic. Especially cold rooms, the demand for the cold rooms is season agnostic, which will continue to grow.
Speaker #2: Because we operate across pharma, essentially food processing, feeds, and couple of those segments which consume our cold room solutions. And our new business line, which is continuous panel, is also season agnostic.
Speaker #2: Though you will have some seasonality effect on the business, but I would confidently say these three-four lines that we operate with are season agnostic itself.
Speaker #2: One business which is highly season centric is a chest freezer business. But that business, the demand for those products also will start picking up from the festive season.
Speaker #2: That is, the festive season begins. The impact of seasonality also slowly fades away because festive drives some demand for the chest freezers as well.
Speaker #2: As we have seen in the market in the last two to three years' time.
Speaker #1: Okay. So now the next question, one more question from Maneesh. And that is on sponsored market. If you look at the sponsored market, for Vivi Coolers, if not, where why we are not targeting this segment?
Speaker #1: Is the sponsored market a Vivi Cooler car? Why are we not targeting? If I'm target, क्यों नहीं कर रहे हैं? ये पूछ रहे हैं Maneesh जी।
Speaker #2: Sponsored market मतलब so Aryan जी, first of all, to cater the sponsored market, you need to have a bigger capacity and for that you need a good amount of capital.
Speaker #2: And currently what we are trying to do is whatever we invested in the last few years, we are trying to optimize it to the full capacity.
Speaker #2: And if you talk about the margin scales, margin is a lying in actually the retail market and not in the mainly sponsored market. So our first focus will be strongly dealer market and retail market where we want to establish our brand on the dealer channel and not on the name of any coke and Pepsi, right?
Speaker #2: So first thing is it needs heavy capital and so much capital and second thing is we want to establish the retail market first and then in the next case we will go for this sponsored market and you know mass scale.
Speaker #2: So even though this is a new product for Ice Mix, we want to establish our product in a retail market, get the good margins and from this margin we want to expand into the next lines and this new market.
Speaker #1: Okay, sir. All right. The next question is from for Chandrakant Pillai circular question है। और ये Kaushal जी का question है। सर, आपने पहले utilization की बात करी थी कि 55 से 60 percent के आसपास में आपका newer facilities में होगा, है ना?
Speaker #1: Where does utilization stand? अभी जो utilization है, वो कहाँ पर है? And how much revenue can the existing capacity support? कितना जो है उसमें revenue आ सकता है जो आपके existing capacity है?
Speaker #2: Existing capacity utilization जो बढ़ा हुआ है, वो बिल्कुल ठीक है। लेकिन product seasonal है। दोनों ही product ऐसा है, mass production है, seasonal है। Third और fourth quarter में सबसे ज्यादा sale होता है। So अब तक का average utilization बताना थोड़ा।
Speaker #1: Okay.
Speaker #2: Hello. दोनों मिला के हम लोग दोनों नए vertical मिला के 62 CR, मतलब almost आप ऐसा समझ सकते हैं कि 35-36 percent हमने लाइन का contribution capacity utilization में first quarter में 60 percent है, second quarter थोड़ा सा वो product के लिए average होता है। Hello, can I ask a question?
Speaker #1: Yeah, yeah, please go ahead. Yeah, no problem.
Speaker #2: Yeah, the issue earlier was that I refreshed the page, then now I am unable, now I am able to unmute myself.
Speaker #1: You are connected, right? Yeah, go ahead. Thank you.
Speaker #2: Yes, sir, coming back to the question that Maneesh जी asked on the sponsored market. Sir commented that our priority first is the dealer market and secondly we need capital to expand our capacities to cater to the sponsored market.
Speaker #2: So now investments coming from Galile of approximately 180 crore or so, how do we plan to exactly utilize that? If you can throw some light on it.
Speaker #1: हमारे जो total object है, उसमें 58 crore जो amount है, वो multiple objects के लिए है। उसमें one of the objects हमारा Ice Make की capacity building के लिए भी है। We will have funds available most probably in the next month.
Speaker #1: So phase-wise manner में उसका जो install capacity है, वो हम बढ़ा पाएंगे। Most probably coming five to six months it will take time to deploy और capacity building। तो specific objects में maybe ये financial year and season time में या फिर most probably next financial year में उसका benefit शुरू होगा। Capacity।
Speaker #2: सर, apart from the 58 crores what would be the rest of the capital used for?
Speaker #1: Actually, there are multiple objects हमने continuous panel में भी specific upgradation plan किया हुआ है। CF में किया हुआ है। Traditional verticals में भी multiple upgradation है। तो there are various objects in this 58 crores। Further there are some acquisition related opportunities as well which is under discussion phase on we are still exploring। So we cannot comment exactly the status but once the things get finalized we will update you in a due course।
Speaker #2: And sir, as phase one has largely completed अब तो हम इसको phase two capex consider कर सकते हैं? अभी जो future में आप take place होगा।
Speaker #1: Yes, ये second phase का ही capex है जो Galile के through fund होगा।
Speaker #2: और sir, last question रहेगा कि हमने opening commentary में raw material prices की वजह से margin पे hit लिया। पर हमारा revenue भी significantly बढ़ा है। तो sir, हम operating leverage को play out होता देख सकते हैं?
Speaker #2: क्योंकि revenue बहुत ज्यादा strong grow हो रहा है अभी। हमारा पर वो bottom line में अभी convert नहीं हो पा रहा है।
Speaker #1: देखिए, ये अभी war situation है इसलिए थोड़ा सा हमारे लिए भी ये predict करना difficult था। इसलिए ये थोड़े margin वाला impact आपको ये first half में दिखेगा। But second half में as we said earlier के हम margin pass on कर रहे हैं। Further जो operating expense की हम आप जो जिक्र कर रहे हैं तो company सिर्फ 1000 crore नहीं मतलब beyond 1000 crore भी जाना है। जो जो भी company का management है वो professionally independently govern होगा, run कर सके उसके लिए भी cost तो हमें आज ही books पे hit करनी है। तो as we said 1000 crore के beyond भी company grow करेगा तो of course top line बढ़ेगा। हम margins को भी consideration में रखेंगे। लेकिन जो operating expense है वो है वो certain points के beyond equivalent amount के through increase नहीं होगा। और what we see that अभी ये जो business और जो opportunity हम देख रहे हैं तो operating capability building को focus करना ही उतना ही जरूरी है क्योंकि आगे वाला जो growth होगा वो rapid growth होगा। तो उस time पे हम जब invest करने जाएंगे तो it will be very late। और ये वाला right time है थोड़ी सी cost हमारे books के ऊपर आएगी। लेकिन beyond two, three, four to five years अगर हम देखेंगे तो उसका जो benefit है वो काफी vast level पे आएगा। अभी जो बड़ी-बड़ी companies में हम देख रहे हैं तो उस line का independent operation हमें अगर लाना है तो cost तो आज ही build up करनी पड़ेगी।
Speaker #2: Okay sir, thank you।
Speaker #1: Thank you।
Speaker #2: Now we have Surpesh Patel। Sir, you can go ahead with your question। Can you unmute yourself? Surpesh, are you there? Can you unmute? In the meanwhile, we'll take one more call, one more question from Mr. Mohsin Shah। And his question is, what is the peak revenue potential from the existing capacity?
Speaker #2: Existing capacity से कितनी potential है peak revenue की? ये question है। Mohsin Shah।
Speaker #1: After first phase of capex हम 950 crore plus की top line contribute कर सकते हैं। It's our install capacity।
Speaker #2: Okay। Cost तो we are not able to unmute yourself। You have another question for Mr. Chandrakant Patel जी। With the Galileo JV जो अभी आपने किया है, how has your strategy changed to compete with the larger players?
Speaker #2: मतलब आपकी जो comparative strategy वो कैसे change हुई है? जो आपके बड़े वाले peer groups players जो हैं, having all price cost strong। Price cost strong market share कैसे होगा आने वाले समय में?
Speaker #2: ये question है costu जी का।
Speaker #1: आपका question Galile product को लेके है ना? JV में।
Speaker #2: जी, Galile। Yes, yes। JV के लिए।
Speaker #1: तो ये product में ऐसा बोल सकते हैं कि India में कोई अच्छे manufacturing player में तो एक ही player है। Second player के लिए काफी market open है। काफी gap है। क्योंकि unorganized और China तो import के काम Indian market की need को पूरी की जाती है। तो as a Japanese partner के साथ हम manufacturing करेंगे। India में IMEC का अपना एक service network brand reputation और dealer network की वजह से हम लोग second player में हम second number पे काम करेंगे। Price तो product में price matter नहीं करता है क्योंकि quality के लिए एक horeca segment एक अलग scale पे चलता है जो हम लोग CF है visicular है वो थोड़ा सा commodity जैसा product हो गया। और हमारे अपने dealer network है brand reputation Japanese technology तो हमें लगता है कि easily हम लोग अच्छे मतलब trade practice जो अभी चल रहा है वैसे हम लोग कर पाएंगे।
Speaker #2: Okay। और कोई question है किसी का? Any more questions? Please you can unmute yourself or you can ask it on the quick Q&A panel। Swati से question है sir। Following the previous question, can you quantify what is the market capacity for the product with Galile?
Speaker #2: Market capacity क्या होगी आपके product की Galile के साथ में जो आपका JV हुआ है? ये question Swati जी का है।
Speaker #1: Unorganized player भी है market size बताना मुश्किल है लेकिन मुझे लगता है कि 1500 crore का market हो सकता है क्योंकि जो हमारे peers के business को जाना 1200 to 1500 crore market size होगा।
Speaker #2: Okay। ठीक है। कोई और question है किसी और का? Any other question please you can type it here। I think there is some issue with the audio today।
Speaker #1: Yeah, I'm audible। Hello।
Speaker #2: Yeah, you are, you are। Please go ahead। Surpesh, right?
Speaker #1: Yes, yes, yes, yes। Thank you so much।
Speaker #2: All right।
Speaker #1: For the opportunity। Sir, ये जो first quarter में issue help me understand कि I assume although अपन ने 11% pricing किस लिए है there are there are orders जो शायद पुराने भाव पे लिए होंगे। तो तो I guess अपन की Q4 में कुछ 200 crore की 200 crore के करीब की order book थी। So so थोड़ा अगर अंदाजा दे सके कि ये quarter कितना revenue ऐसा book हुआ होगा that would be let's say at an older price जहाँ पे ये 11% का increase fully pricing नहीं हुआ होगा।
Speaker #2: Actually हम ये guidance दे रहे हैं कि कुछ ये वाले quarter में हम थोड़ा pass on करने का try करेंगे। लेकिन maximum visibility H2 से आएगी। We do not expect के H1 में हम बहुत ज्यादा impact कर पाएंगे।
Speaker #1: नहीं नहीं sir मेरा question थोड़ा वो था कि मैं बोल रहा हूँ कि अपन ने 11% जो increment लिया था ये quarter right। But अपन के पास existing order book पड़ी थी 200 crore की। मैं बोल रहा हूँ कि जो 200 crore की order book होगी that would probably at an older price right। Because negotiations already हो चुके होंगे। The question I was trying to understand is कि कितना percentage of order book जो 200 crore का था वो ये quarter execute हुआ होगा जो पुराने भाव पे deal हुई होगी right। जो 11% जिसमें ये increment का include नहीं आया होगा।
Speaker #2: आप हमारी pending order book में projects वाले business आप निकाल देंगे तो जैसे cold room commercial और continuous panel की जो अभी existing pending order है that would be somewhere around 70-75 cr के आसपास। Right?
Speaker #2: तो वो वाला आप ऐसा consider कर सकते हैं कि भई ये जो pending order book है उसी के अंदर शायद old price है जो हमने already book किया हुआ हो। उसमें impact हो सकता है।
Speaker #1: अच्छा आप बोल रहे हो कि project business में पुराना भाव लगा होगा अभी भी।
Speaker #2: Projects works differently। तो project वाले business को हम regular routine जो business।
Speaker #1: Project तो आप पुराना बोल सकते हैं क्योंकि tender है तो ये tender जब हमने build किया रहता है तो उसके दो ढाई महीने बाद तो आपके हाथ में order आता है। तो tender का जो business है लेकिन actually project और tender business का margin भी change है। इसलिए वहाँ हमारे उसमें कोई ज्यादा value addition नहीं होते। उसके price के hike से ज्यादा फर्क नहीं पड़ेगा। फर्क पड़ेगा लेकिन जो हमारी other product है cold room और CPCF में वहाँ price hike में ज्यादा immediate फर्क आ जाता है।
Speaker #2: Understood। But sir मेरा question of course confusion हो रहा है। मेरा ये था कि sir जो Q4 में अपना order book था जो previous order book था उसमें पुराने भाव के order book अच्छी खासी होगी। उसमें से थोड़ी अच्छी खासी order book ये quarter execute हुई होगी जो नया price जिसमें include नहीं हुआ होगा। और अभी जो अपनी 200 crore की existing order book है वो सारे अभी I assume that would be all at new prices right। Because अपन ने April से ही भाव बढ़ा दिए थे।
Speaker #1: जी। तो उसमें आप 50% पकड़ सकते हैं। 100 crore का जो order है वो पुराने price पे होंगे जो project nature के।
Speaker #2: Okay। तो उधर उधर impact आ सकता है अभी भी।
Speaker #1: हाँ वो impact आ सकता है।
Speaker #2: तो sir POF panel में pass on हो गए भाव जो भी let's say POF के जो prices बढ़े थे वो pass on हो चुके हैं।
Speaker #1: POF panel के price pass on हो गए chest pressure हो गया cold room में हो गया।
Speaker #2: Okay।
Speaker #1: तो second दो बार तो हो गया third time के लिए preparation कर रहे हैं कि एक साथ में आप complete एक ही साथ में तो आप completely pass on नहीं कर सकते।
Speaker #2: Sir, sir is it possible to tell कि ये जो Q1 में POF panel में क्या gross margin अपन ने किए होंगे?
Speaker #1: नहीं वो थोड़ा difficult रहेगा। क्योंकि कुछ common operations भी है।
Speaker #2: Okay। No problem no problem। Understood। And sir थोड़ा वो just just trying to understand management का perspective है कि let's say अभी जो situation है right जहाँ पे let's say prices have increased let's say sir बोल देते हैं 16-18% but let's say on an incrementally also अपन 10-11% ही pass कर पाए शायद third raise नहीं भी कर पाए because अपन you know we just started this business। नया वाला so dealer को इतना impact भी नहीं कर सके। But तो हो क्या रहा है कि एक बाजू sir अपना growth काफी अच्छा हो रहा है but दूसरी बाजू conversion नहीं हो रहा है। तो but जो incremental growth है ना sir उसका कोई cash flow बन ही नहीं रहा। तो अपना हर बार अपना मतलब every time नए sale के लिए अपने को capital चाहिए because existing sale से कोई cash flow ही नहीं आ रहा। तो although अपने पास इतना demand है अपन as a conscious decision ले रहे हैं कि कोई कोई order अपन let's say because of current environment scenario अपन एक बार जाने दे रहे हैं to just manage कि ये phase निकल जाए because we are because एक ही अपना inability है कि और pass on कर पाएंगे और अभी भी prices elevated है।
Speaker #1: ये वाला जो phase है थोड़ा हमारे लिए tricky भी था मतलब हमने ये invest नहीं किया था कि ये war का impact कितना लंबा चलेगा कब बीच में थोड़ा सा stability आया था तो हमने फिर से price hike वाला जो decision था वो थोड़ा hold पे रखा कि भई अभी थोड़े prices हमारे control हो जाएंगे but फिर से war start हो गया तो now अब price pass on का हमने decision अभी बना लिया हुआ है तो ये वाली phase के अंदर industry भी काफी long time के लिए बिना price hike किए operate नहीं कर पाएगी। और नए वाले जो vertical है उसमें business positioning के लिए जो dealer network हमने establish किया हुआ है उनका confidence भी ice make में बना रहे उसके लिए मतलब orders जाने दे वैसा scenario तो अभी हम नहीं सोच रहे हैं लेकिन जो orders हम ले going forward price hike का impact उनको pass on करे वो हमारे focus में रहेगा क्योंकि students भी business जाने देना तो potentially ऐसा हो जाएगा कि business के साथ हमारा connect loose हो जाएगा। हमें ऐसा नहीं लग रहा है कि भई price pass on करके भी मतलब going forward वाली business पे हम margin नहीं कमा पाएंगे। उस phase business में ऐसे आते हैं जब quarter में हम जो expect करते हैं वैसे हम outcome ना ले पाए। लेकिन that doesn't mean कि हम वो potential business को lose करें क्योंकि अभी इतनी अच्छी pending order book है हमारी funnel है हम price hike करेंगे तो उसका भी benefit pass on होने वाला है हमारी services भी काफी अच्छी है तो customer का वो comfort हमारे ऊपर बना हुआ है और dealer को भी हमारे ऊपर trust और confidence है तो ये it's just a matter of time as to के अंदर हमें लगता है कि हम price pass on वाला impact आपको show कर पाएंगे और fully year में हम जो six and half वाला जो EBITDA margin बोल रहे हैं वो एक बार full year के financial publish होंगे then investor will also gain confidence।
Speaker #2: Understood। Understood। Great। And sir अंकित sir question आपके लिए है कि for example जैसे मैं Q1 का other expense देख रहा हूँ right that is 30 crores almost और same same why and why देखूँ अगर Q1 FY26 जब अपना नया business start नहीं हुआ था right it was capitalize भी नहीं हुआ था तो almost 22 crore के जितना है मतलब 18 से 19 crore रहता था अगर मैं normal पुराना business मानूँ तो incremental ये ये जो 8-9 crore रुपये आए हैं right ये quarter is it right to assume कि इसमें काफी हद तक fix nature है because जो मेरी समझ है अपनी lines काफी हद तक automated है right तो अगर मैं 30 पे चलाऊँ ये line या 60 पे चलाऊँ मेरा same ही electricity cost लगने वाला है और थोड़ा बहुत of course variable रहेगा in number of employee और let's say थोड़ा बहुत consumables में तो is it right to assume कि going forward जो अपन का अभी 40-50% है utilization नए business में जब वो 80 भी जाएगा तो ये 9-10 crore का number शायद 12-13 से मतलब incrementally बहुत नहीं बढ़ने वाला वो शायद 13-14 तक जा सकता है max but वो somewhere around fixed cost ही है इसमें major।
Speaker #1: हमने ये वाली जो expenditure है उसमें हम fixed nature के ज्यादा बोल सकते हैं variable nature के भी expenditure रहेंगे कुछ company ने वैसे decision लिया हुआ है कि भई जो नए product है उसको establishment करेंगे ज्यादा branding करेंगे फिर dealer networking में और ज्यादा invest करेंगे कुछ promotional activities है उसको भी cost हमने stop नहीं किए हुए हैं तो मतलब expenditure को ज्यादा compress करने से ज्यादा हम margin pass on करके business बढ़ा के इसके सामने recovery करें और profit show करें ये हमारा first focus है otherwise उस activities ऐसी है जिसमें हम expense को control कर सकते हैं but the thing is हमें future के लिए भी देखना है एक आध quarter या H1 हमारा impactful हो जाता है तो हमें future की visibility कम नहीं लगती है और past में भी हमने जो profit deliver किया हुआ है उससे हमें business में confidence है कि भई ये वाला जो expenditure है वो future में तो pay out करने वाला ही है क्योंकि we are just not thinking about current year future में भी हमें ये business को एक अलग scale पे ले जाना है हो सकता है future में हमें और expansion करना पड़े तो at that point of time ये हमारे लिए investment साबित होगा।
Speaker #2: I understood sir मेरा purpose ये question का थोड़ा वही जानने का था कि fixed nature के cost कितने हैं ताकि I just wanted to understand कि आगे जाके incremental revenue पे खर्चा same रहेगा इससे मेरा purpose था तो although sir I understood आप जो point बोल रहे हो कि इसमें marketing वाला खर्चा भी होगा but अगर आपको थोड़ा अगर quantify करना है for a broader understanding कि जो incremental 10-11 crore लगे हैं right because of the new business coming in उसमें से कितना fixed nature का होगा मतलब 6-7 crore fixed हो गए आपके हिसाब से in number of percentage कि भाई इतना तो fixed ही रहेगा irrespective of utilization।
Speaker #1: As of now ये वाली information handy नहीं है आप अलग से आप हमें mail कर देना हम आपको उसके ऊपर revert कर देंगे।
Speaker #2: Sure sure sure। And one more question on the ये जो अपना अभी you know the JV which we are planning with Galile of course चंद्रकांत सर ने बोला that it will take time but the amount जो मैंने देखा it is quite significant मतलब दोनों मिलके almost let's say 90 crore ये business में डालने वाले this is quite quite significant जो अपने को start मिलने वाला है just trying to understand कि ये capex जो अपन जो पैसे लग रहे हैं इसमें से capex कब तक commit होने वाला है I mean you know कब कब अपन you know when can we start seeing revenue from this JV और और कब तक ये funds deployment का planning है?
Speaker #1: Actually production हम लोग February 28 target किया हुआ है 18 महीने का हमारे partner ने 1 crore में बना के दिया हुआ है क्योंकि India Indian condition Indian power और environmental rules को देख के product design भी करना है completely product design और technology उनकी ओर से आना है तो Indian product में पकड़ सकते हैं product launch कर देंगे।
Speaker #2: Okay interesting। Interesting और sir ये product अपन खाली India market में target कर रहे हैं या outside India भी सोच रहे हैं?
Speaker #1: First phase में तो Indian market है और sir ये।
Speaker #2: Perfect got it। और sir ये थोड़ा चंद्रकांत sir आपसे भी थोड़ा एक perspective broader जानना था कि जैसे अपन JV में तो अलग से investment कर रहे हैं right I'm just trying to understand कि वो लोग ने जैसे capital company में भी डाला है right वो mindset क्या था उनका कि you know कि company में भी capital डालना है versus let's say ना कि खाली एक JV बना के डालना है तो उस perspective से strategically कैसे अपने को help करेगा या थोड़ा broader view जानना था आपके conversation से।
Speaker #1: Actually वो long term का relationship को लेके ice make में भी invest किया हुआ है तो उनकी JV को secure करने के लिए उनका principal company ice make में बैठना बैठने से उसको लगता है कि JV को अच्छे से support कर पाएंगे as a ice make तो वैसे उन लोगों ने total तो 20% stack demand किया था तो हमने SPA में भी वो plan किया हुआ है कि तो वो तो control stack तो हम लोगों ने मना किया था कि हम नहीं करेंगे company के पास ice make के पास multiple product है इसीलिए JV form करके वो product वहाँ पर किया
Speaker #2: Understood। और sir जो products अपन सोच रहे हैं ये जो Bore का segment में वो अभी अपन तो नहीं बना रहे right at least वो completely इस second ही रहेगा।
Speaker #1: हम बनाते हैं लेकिन वो हमारा हमारा वो focus नहीं वो product में क्योंकि जापानी technology के साथ जो product बनते हैं उससे हमारे हम अभी जो बनाते हैं उसका कोई comparison है नहीं इसीलिए ज्यादा numbers नहीं है हम लोग ज्यादा business lose नहीं करेंगे हमारे existing business में।
Speaker #2: And sir last question I will I will join back in the quick queue। Acquisition of course the JV would let's say take 18 months। Acquisition sir कब तक you know वो कब तक fruitify होगा या कब तक सोच रहे हैं?
Speaker #1: Acquisition open है acquisition हमने object में acquisition और हमारे पास अपने भी product expansion यहाँ की जो manufacturing capacity scale बढ़ाना geographical expand होने के भी जरूरत है क्योंकि product का logistic cost को लेके हम manufacturing facility दो तीन region में होना चाहिए तो दो तीन object के साथ हम लोग करते हैं acquisition उसमें से एक है तो वो बोल नहीं सकते कि acquisition कब होगा और होगा।
Speaker #2: No problem। No problem sir। Got it। Thank you so much and all the best।
Speaker #1: Okay।
Speaker #2: Thank you।
Speaker #1: Alright sir तो अभी एक question बहुत ही interesting जो है FDA जो है food and food food जो department Maharashtra का है वहाँ से एक question है उसके FDA के कारण जो बाजार में बदलाव देखने को मिल रहे हैं और जिस तरह से श्री तुकाराम मुंडे जी जो Maharashtra के FDA के chief हैं व्यवसाय को नियमों का अनुपालन सुनिश्चित करने के लिए प्रेरित कर रहे हैं वो और क्या इससे ice make के जो हमारे product हैं उसकी मांग में बढ़ोतरी देखने को मिल सकती है ये सवाल है धनेश का।
Speaker #2: Sir rules under FSSI Maharashtra it is more towards with the food quality to do with the ingredients makes more to do with the standard operating process within the hotels all of that so see we provide infrastructure cooling infrastructure refrigeration infrastructure I don't think that will have any impact either positive or negative with that kind of a rule that is coming in but probably it may help in somewhere other to you know comply with the norms much better in terms of the temperature hygiene and standards.
Speaker #1: Correct correct। Alright sir तो now next question we have two three questions more one is from Moshamsa are we planning to reduce debt from 180 crore that came in the company so question only debt 180 crore।
Speaker #2: Actually 40 40 crore debt repayment object is there in our preferential object and the other 39 crore is as a GCP GCP is mostly towards the working capital need so 40 crore is exactly where we are planning to pay the debt which is earlier used for the CAPEX purpose।
Speaker #1: Okay। Thank you Ankit जी and दूसरा सवाल जो है अंकुश गुलाटी sorry अंकुर गुलाटी जी का है and the question is why is depreciation down in June 26 to 205 from 449 in March 2026 so ये जो depreciation के ऊपर सवाल है।
Speaker #2: Company अभी upcoming time में काफी heavy CAPEX कर रही है तो जो CAPEX हम करेंगे उसका benefit going forward gradually business को मिलना शुरू होगा whereas जो हमारी previous WDB policy है उसमें maximum depreciation initially हमें आता है so we feel that the benefit which companies going to get from the investment doesn't sync with the existing policy we have adopted so suitably to match the benefit with the cost on our books we have decided to change our accounting policy which is thoroughly discussed in our board and then we have adopted the same। So just to match the benefit of our investment in CAPEX with the benefit of our top line revenue which we are going to gain in the future। It will in future get same। और बड़ी जो भी industry है जैसे हमारे peers है Blue Star है वो सभी भी SLM policy ही follow कर रहे हैं so we thought better to prepare our financials in a sync with our investment policy change।
Speaker #1: Correct। Alright so I think we have already crossed the five six so shall we close now I mean I just wanted to there are no further question I suppose। Alright so now we will I will invite Mr. Chandrakant V Patel our chairman and managing director for his closing remarks। Over to you sir।
Speaker #2: Good evening। Q1 FY27 में strong revenue moment देखने को मिला है जबकि profitability में improvement हमारा immediate priority area बना हुआ है capacity utilization efficiency product mix और cost discipline को बेहतर करने पर हम focus कर रहे हैं ताकि future growth के लिए किए गए investment बेहतर operating performance में translate हो सके प्रस्तावित gallery transact transaction company के लिए एक महत्वपूर्ण strategy है जो capital technology और नए market opportunity को साथ लेकर आता है आवश्यक approval और closing condition पूरी होने के बाद ये transaction हमारी commercial capability को मजबूत करने में मदद कर सकते हैं और company के next phase of growth को support कर सकता है हमारा focus strong education discipline capital allocation बेहतर margin और sustainable value creation पर बना रहेगा proposed transaction की progress के साथ हम investment from investment community को लगातार timely update देते रहेंगे thank you।
Speaker #1: Now I invite our CS Mr. Munnar Desai to say you know both of thanks।
Speaker #2: Thank you all investors analyst shareholders and other stakeholders for participating and for the constructive question and discussion thank you have a very good day।
