KRN Heat Exchanger and Refrigeration Limited — PPTs, 13-05-2025: Investor Presentation

1. Financial Highlights:

KRN posted consolidated revenue of ₹135.83 Cr in Q4 FY25, up 62.3% YoY. EBITDA rose 7.5% to ₹18.89 Cr with a margin of 14.37%. Net profit increased 23.4% to ₹14.87 Cr, while net margin moderated to 10.95%. For FY25, revenue reached ₹429.85 Cr (+39.5%), EBITDA was ₹70.51 Cr (16.4% margin), and net profit stood at ₹52.88 Cr (11.97% margin). The balance sheet reflects growth in fixed assets (₹167.47 Cr) and net worth (₹498.63 Cr), with strong current assets driven by cash and receivables. Capacity utilization remains above 84% across key lines, supporting operational efficiency.

2. Strategic Initiatives & Growth Drivers:

KRN is expanding capacity sixfold via a ₹300+ Cr capex at Neemrana targeting HVAC&R and new sectors like railway electrification and industrial cooling. The launch of its R&D arm, Thermotech Research Laboratory, aims to accelerate innovation and energy-efficient tech adoption. Investments in solar integration, automation, and ERP are improving cost control and transparency. Export footprints are growing, particularly in North America and Europe.

3. Business Developments:

Approval as an Indian Railways vendor for oil cooler radiators unlocks a strategic sector. New product launches include bar & plate heat exchangers, roll-bond evaporators, and oil cooling units with blower & motor, diversifying industrial offerings. The subsidiary KRN HVAC Products Pvt. Ltd. will spearhead product development and manufacturing scale-up.

4. Market Position & Competitive Advantage:

With 7+ years’ experience and 2 plants, KRN partners with top clients like Daikin and Schneider Electric. Its strength lies in custom heat exchanger precision, strict quality controls (including helium leak and salt spray tests), and advanced nano/powder coatings enhancing durability. Capacity expansion and tech investments reinforce KRN’s leadership in customized, energy-efficient HVAC solutions backed by consistent financial growth.

5. Investor Implications:

KRN offers positive growth potential driven by volume expansion, product innovation, and entry into high-growth segments like railways and exports. Operational efficiencies help mitigate margin risks. Key execution risks include ramping up new capacity and raw material supply stability. A healthy balance sheet and strategic investments provide a solid base for scaling and improving returns ahead.