KRN Heat Exchanger and Refrigeration Limited — PPTs, 12-05-2025: Investor Presentation

1. Financial Highlights:

KRN Heat Exchanger reported consolidated revenues of ₹429.85 Cr for FY25, up 40% YoY, with EBITDA at ₹70.5 Cr (16.4% margin) and net profit at ₹52.9 Cr (12% margin). Q4 revenues grew 41% YoY to ₹135.8 Cr, with EBITDA at ₹18.9 Cr (14.4% margin) and net profit at ₹14.9 Cr (11% margin). Raw material costs increased proportionally, while employee and other expenses rose moderately. The balance sheet shows fixed assets at ₹167.5 Cr, cash balances of ₹151.2 Cr, net worth of ₹498.6 Cr, low debt-equity of 0.07, and a strong interest coverage ratio at 19.3x.

2. Strategic Initiatives & Growth Drivers:

A ₹300+ Cr capacity expansion is underway, including a new bar-plate facility and the launch of a HVAC subsidiary, aiming to increase production capacity sixfold to over 3 million units annually. Investments in R&D, automation, solar power, and ERP systems target margin improvement. Growth focus is on railway electrification, industrial cooling, and exports to North America and Europe. A new R&D lab supports product innovation and quality enhancement.

3. Business Developments:

Vendor approval from Indian Railways for oil cooler radiators opens access to railway infrastructure projects. A wholly-owned HVAC subsidiary extends product range to bar & plate heat exchangers, oil coolers, and roll-bond evaporators. Export footprint now covers 14 countries, with partnerships strengthened with major clients including Daikin, Schneider Electric, and Blue Star.

4. Market Position & Competitive Advantage:

KRN holds a leadership stance in custom heat exchangers, supported by diversified products and quality certifications (ISO, AHRI, UL). In-house manufacturing with advanced nano and powder coating technology enhances durability and efficiency. Established client relationships and scale advantage enable competitive pricing and highly customized solutions. Expansion into railway and industrial cooling sectors further strengthens differentiation.

5. Investor Implications:

Strong revenue growth, margin initiatives, and significant capacity expansion position KRN for positive growth potential. Its solid balance sheet and low leverage reduce financial risk, while international market expansion and product portfolio diversification enhance resilience. Investors should watch capacity ramp-up execution, margin trends, and market penetration as key performance drivers.