Refex Industries Limited

Anil Jain

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Miten Shah

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Anil Jain

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Krishna Chaudhary

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Krishna Chaudhary

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Krishna Chaudhary

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Krishna Chaudhary

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Anil Jain

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Anil Jain

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Smit Jain

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So my first question would be like, we see different listed company called Refex Renewables also, so I would like to ask whether it falls into the consolidated statement of Refex Industries or is it a separate sister concern company from the same promoter management?

— Miten Shah

Or like we are seeing some slowdown or what is the situation on the ground at this point?

— Smit Jain

Q

Good morning everyone and thank you for joining us on yet another earnings call. Q2 FY2026 marked a period of steady improvement across our coal and ash handling business, despite the early and intense monsoon-led disruptions in Q1 and continued rainfall in Q2, which was largely anticipated as part of a seasonal cycle. With activity levels picking up across sites and cost discipline continuing, our total income from continuing operations largely driven by ash and coal handling, grew sequentially by about 15% to INR 431 Crores, while EBITDA nearly doubled to INR 74 Crores from last quarter. The

Management

Q

Hello, am I audible?

Management

Q

Yes, thank you for giving opportunity. So my first question would be like, we see different listed company called Refex Renewables also, so I would like to ask whether it falls into the consolidated statement of Refex Industries or is it a separate sister concern company from the same promoter management?

Anil Jain

It is a very separate listed entity. It has nothing to do with Refex Industries. Ok. Thanks. And this time, the presentation did not include the refrigeration business at all. Is it that we have totally wiped it off? Or is it on the process of completion or wiping it off? Dinesh Kumar Agarwal: If you see the notes to the account, this has been clearly disclosed. It has been clearly disclosed and in the segmental region, there is a separate revenue and the profit has been disclosed. Okay, so it will be totally closed from here onwards. Am I right? Dinesh Kumar Agarwal: It is in the process of l

Q

Hello, am I audible? Yes, sir. Thank you for the opportunity. Sir, I would like to know regarding the order book status that currently we have. We have been regularly disclosing the new order wins to the exchanges, but if we can have some brief numbers regarding the coal and ash handling business, what all order book do we have right now? Dinesh Kumar Agarwal: We have a very good order book as of now it is close to INR 1200 Crores in the we have completely in the coal and ash handling services business and I mean next six months business will be really well.

Krishna Chaudhary

Okay sir and regarding the amendment as you mentioned we have two ongoing projects right now, right, any other sir we are in the pipeline that we can expect to win in the coming months? Dinesh Kumar Agarwal: As and when new order comes will be keep disclosing to the market as we are disclosing already whatever the orders are coming, will be keep disclosing it. Okay thank you sir and one more thing I wanted to ask in the balance sheet we have mentioned some contract assets so what is that basically if you can provide ? Dinesh Kumar Agarwal: Whenever a service or a work gets completed, but due t

Q

Hello, yes, good morning. I have a couple of questions. One was regarding Venwind. We have a couple of orders that we won, but as I can see in the P&L, we have still not recognized any revenue. So is it that we have front-loaded the expenses and revenue is going to come in the second half or at what point do we start booking revenues in the Venwind vertical?

Anil Jain

Most of the revenues will start getting booked from the third and fourth quarter onwards. Maximum revenue will be in the fourth quarter. We will have some small revenues also might come up. These are again all in production the equipment are, as soon as the production happens we will start delivering to the customers. Okay so basically the 179 megawatt and the other order that we won for INR 74 Crores is that to be executed and completely booked in this year or like there would be spillover in subsequent years as well? Majority will be done in this year there could be potentially some spillove

Q

Hi, I wanted to understand the margin surge in the ash and coal handling business this quarter. Dinesh Kumar Agarwal: This quarter margin is really good. It is between 10% to 12%. and that is majorly because of product mix. Few of the plant where we are working have a very good margin and there the rains were not there because of that margin is it is upward of 12% whereas it will be within 8% to 10% like any other quarter it will continue to have a 8% to 10% of margin.

Jasmine Surana

So I am to understand that the margin surge is just a one-off and it is a result of lesser rains in some plants and better product mix? Dinesh Kumar Agarwal: It is because of better product mix. Margin is always it will be between 8% to 10% to 11%. Okay, thank you.

Q

Yes, thanks again for giving the opportunity. So as far as this order for Venwind is concerned, is it only for the supply of these wind turbines or does it also include the operation and maintenance say for the next 10, 15 or 20 years which is normally with other players because those are basically recurring revenues, which gets increased over a period of time. Dinesh Kumar Agarwal: It is only for the supply for the O&M there will be a separate contract anyway we have to do an O&M also, but whatever the disclosure is done it is only for the supply.

Miten Shah

Got it. And are there any investment, which has been forecasted for this year or for next year If yes, then how much would that be? No, We are not currently looking for any raise in capital Miten Shah And if I see the present capacity is like almost 70,000 metric tons per day of ash handling, what are we targeting, say, in the nearby future, say, two to three years down the line from the present capacity? Three years down the line, we think we should at least grow by about 60% to 65% on daily handling. Sorry, your voice is a little bit feeble. Can you speak a little bit louder? Anil Jain We ar

Q

Hello. Good morning, sir. Firstly, congratulations to the management team for a strong margin recovery this quarter and for the steady operational performance despite extended monsoon. So I just wanted to understand, the company stands on the power trading vertical. We have seen its contribution fall sharply from around 20% of revenue in FY2024 to just 0.1% this half yearly. So given the CERC's recent July directive on implementing market coupling, which aims to create a single uniform price across power exchanges, how does the management view this regulatory shift? And could a uniform clearin

Anil Jain

So just to give a little more color to what you said, we were into pure trading of power only. We were not into market coupling or on exchange. We have decided to wind this up completely because the margins in power trading were extremely low and this was not in alignment with what we were doing where our majority of focus was. So, we would not be looking back into power trading business anymore. Okay. Sir, since ash and coal handling business derives around more than 96% and how do you see the contribution evolving once the green mobility and wind verticals which match yours, how do you see t

Q

Yes, just a couple of clarifications. One is regarding the margin on the coal and ash handling front. So I think you mentioned that this quarter we have done somewhere around 10% to 12% on the margin front. And typically, the range has been 8% to 10%. But because of a better product mix, we have been able to do 10% to 12%. So going forward, is 10% to 12% sustainable? Or the range is going to be 8% to 12% when we want to ramp up and we will be taking some lower margin orders as well? How do we see it going forward? Dinesh Kumar Agarwal: It will be in the range of 8%-11%. It will not be like 12%

Smit Jain

Okay. The second thing was, Mr. Anil ji mentioned that, we want to ramp up our daily ash handling capacity from 90 to, somewhere like grow it by 60%-65% in the next three years. So are we saying that in the next three years, we are targeting our daily ash handling capacity of 165-170k metric ton per day? Or like, are we wanting to grow 60% year-on-year for the next three years? Like, how do we see it? Anil Jain:I was saying that it will be a total growth of around 60%-65% at the end of the third year. At the end of the third year, it will be around 105,000 to 110,000. Thank you.

Q

Yes, thanks for the opportunity again. So, what is the present pipeline for the wind turbines as well as the coal and ash handling?

Anil Jain

We are talking to a lot of customers for wind turbines. We do not have a pipeline. But as and when we get orders, we will keep disposing that to the market. And ash and coal, yes, we are bidding actively in all the tenders. And as and when we win, we are continuously keeping the markets and the shareholders informed about the sale. Okay. Can there be an indicative figure? Like you said, you were just participating in the tenders. What are the capacity over there per day, cumulatively? There are very varied tenders across the country. More than 40-50 tenders keep coming up. we do not have a bal

Q

Yes, thanks for the opportunity again. Just to understand the on-ground situation, we have seen quite a few wind energy companies announce their results and having a very solid order book. So are we also seeing some increased traction on the ground for the kind of products that we are manufacturing or wanting to manufacture in India? What is the situation on ground? Because you have been talking to the customers. How bullish are we with respect to this segment? And do we see a situation of overcapacity getting built? On the wind turbine segment side as well, how are we probably seeing on the s

Anil Jain

No, I do not think there is any overcapacity being built on the wind. Even today, a lot of wind turbines are being imported to India. And on the ground, we see a good need. A lot of government is coming up with many tenders for the wind IPPs. So we see a good active market and hopefully in the next two years, we will be able to scale up to the competition here. Okay, so we are targeting like a 5 gigawatt sort of a capacity in the next five years, right? So I mean, that is not like a very, it is not like a very unrealistic number, you feel that there is something which is realistic, given the c

Q

So my question is regarding to the guidance. Could you please share your guidance for FY2026 and FY2027 in terms of top line and bottom line?

Anil Jain

We have not been sharing the guidance in the past. That is fine. And second question is how do you expect the revenue mix to evolve in the coming years? Dinesh Kumar Agarwal: It is only one business, no? I mean, it is predominantly ash and coal handling business. So, revenue will be only from this line of business. Okay, and the margins are expected between 8% to 11%? Dinesh Kumar Agarwal Yes.

Q

Yes. So, I would like to have further clarity on how the entire coal and ash handling business operates. So, is it like we get paid for the collection of this residue of this coal and ash and once we collect it, I believe we further resell it to concrete mixers or some other OEMs. Or we just dispose it off. I mean, how does this entire business model work? If you can just explain it. Dinesh Kumar Agarwal: It is very specific to the individual plant and the locations. Multiple ways are there. There is a sales happens to the RMC. There is a sales happens to the cement plant. There is a payment b

Miten Shah

Got it. So, but do we, do we resale this once it is collected at any moment of time? As I said, it depends from say plants to plants, but at times do we resell it to the do we resell it once it is collected? Dinesh Kumar Agarwal We call ourselves as ash handling solutions provider. We have solutions for everything. Sell, resell, transport, compliance we are a solutions provider for the thermal power plant who are facing the issues in the disposing of the ash in an environmentally friendly way. We are a one of the company who provides the complete solutions for the thermal power plant. And in c

Q

Yes sir, in previous Con Call we had mentioned that we are looking for expansion in the north eastern region of the country as well. So just wanted to understand how things are going on in that front, have we been able to get some customers from there? Dinesh Kumar Agarwal: Not yet few tenders are delayed we expect something to come up in the future quarter.

Krishna Choudhury

Okay and sir regarding the cash sitting on a balance sheet what are our plans to utilize that cash like we have borrowings also and we have good amount of cash also like where do we deploy that in the future. Dinesh Kumar Agarwal: It will be towards the working capital. Okay. Thank you, sir.

Q

Hello. Am I audible?

Management

Q

Yes, my question to the management is, I have one question and one feedback. Question is, there is a huge amount of other current assets. I mean, if I compare the Annual Report of Financial Year 2023 with 2024.

Management

Q

Ok, am I audible now?

Management

Q

I wanted to know the reason for a huge jump of other current asset items if we compare the Annual Report of financial year 2023 with 2024 and in the current year as well, there is a huge jump in other current asset items. So I want to know the breakup of what exactly it is, the reason for the jump and my feedback would be whatever the management is doing, like setting of the power trading business and entering into the wind category, I fully support the management. I feel the management is very dynamic in taking decisions. Dinesh Kumar Agarwal: I will take up your two question sir. One on the

Samrat Shah

Thank you, sir. I got my answer. And also, thank you for the wonderful wealth that you have created. I am an investor since 2021. And my regards to Anil sir and the entire management team that they have done fantastic growth and all the best for the future as well. Thank you.

Q

Yes, so the first order is 153.7 megawatt order. Could you know the approximate value for that order? Dinesh Kumar Agarwal: It has been disclosed, sir. That is INR 750 Crores.

Miten Shah

Sorry, how much? Dinesh Kumar Agarwal: It is part of the disclosure only. It is INR 750 Crores. Okay and the second one would be like almost 370 megawatt? Sorry, 70-75 megawatt? The one which is of INR 475 Crores? Dinesh Kumar Agarwal: It is close to 100 megawatt. Close to 100 megawatt. Ok. All right. And once again, I would like to allude to the fact that the previous participant said, again, I have actually invested earlier in Refex and will continue to do so in the near future. And I am very much impressed by the management over the years, especially last four years. And I really appreciate