This article first appeared on GuruFocus .
Release Date: November 06, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
-
Refex Industries Ltd ( BOM:532884 ) reported a 15% increase in total income from continuing operations, driven by improvements in the coal and ash handling business.
-
EBITDA nearly doubled to INR 74 crores, showcasing the resilience of the company's business model.
-
The company is seeing a steady pickup in site activity and volumes across coal and ash handling operations post-monsoon.
-
Refex Industries Ltd ( BOM:532884 ) has a strong order book of approximately INR 1,200 crores in the coal and ash handling services business.
-
The wind turbine manufacturing business is competitive, with orders already secured, indicating a strong market position.
Negative Points
-
The company is in the process of winding down its bar trading operations, indicating a strategic shift away from this segment.
-
Margins in the ash handling business are expected to remain between 8% to 11%, with no significant increase anticipated.
-
The demerger process of Refire Mobility Limited is ongoing and may take 6 to 7 months to complete, potentially causing temporary operational disruptions.
-
The refrigeration business is in the process of liquidation, indicating a reduction in business segments.
-
There are concerns about potential overcapacity in the wind turbine segment, although the company remains optimistic about demand.
Q & A Highlights
-
Warning! GuruFocus has detected 7 Warning Signs with BOM:532884.
-
Is BOM:532884 fairly valued? Test your thesis with our free DCF calculator.
Q: Is Ref Renewables part of Refex Industries' consolidated statement, or is it a separate entity? A: It is a separate listed entity and has nothing to do with Refex Industries. - Unidentified_2
Q: What is the status of the refrigeration business? Has it been completely wiped off? A: It is in the process of liquidation, but not yet completely closed. - Unidentified_4
Q: How does Refex Industries' wind turbine business compare to established players like Suzlon and IO Wind? A: We manufacture 5.3 MW wind turbines, which are larger and technologically superior, giving us a competitive edge. - Unidentified_2
Q: What are the current margins in the ash handling business? A: The margins are in the range of 7% to 10%. - Unidentified_4
Q: What is the current order book status for the coal and ash handling business? A: The order book is strong, close to INR 1,200 crore, ensuring robust business for the next six months. - Unidentified_4
Q: When will the revenue from the wind turbine orders be recognized? A: Most of the revenue will start being booked from the third and fourth quarters, with maximum revenue expected in the fourth quarter. - Unidentified_2
Q: What is the rationale behind the recent increase in authorized capital? A: It is for compliance requirements, and there are no immediate plans to raise funds as the company is sufficiently capitalized. - Unidentified_4
Q: How does the company plan to handle the ash collected if there are no buyers? A: We provide complete ash handling solutions, including sale, resale, transport, and compliance, ensuring environmentally friendly disposal as per regulations. - Unidentified_4
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
