Refex Industries Limited (RIL) has announced a significant business development, securing an order worth ₹25 crore from Andhra Pradesh Power Development Company Limited. The order, which bolsters the company's position in the industrial services sector, is for the transportation of pond ash.

Order Details

The company disclosed the following key details about the order:

• Client: Andhra Pradesh Power Development Company Limited
• Nature of Contract: Transportation of Pond Ash
• Contract Value: ₹25.00 Crore
• Execution Period: 3 Months
• Scope: Supply and services for pond ash transportation

Strategic Implications

This order represents a notable achievement for Refex Industries, showcasing its capabilities in handling large-scale industrial logistics projects. The contract's domestic nature aligns with the company's focus on serving India's growing industrial needs.

Regulatory Compliance

In adherence to regulatory requirements, Refex Industries has promptly disclosed this information under Regulation 30 of the Securities and Exchange Board of India (SEBI) Listing Obligations and Disclosure Requirements Regulations, 2015. The company has confirmed that this contract does not fall under related party transactions and that there is no interest from the promoter or promoter group in the awarding entity.

Market Impact

While the specific market reaction remains to be seen, this ₹25.00 crore order is likely to have a positive impact on Refex Industries' financial outlook for the coming quarter. It demonstrates the company's ability to secure significant contracts in the competitive industrial services sector.

The timely execution of this contract over the next three months will be crucial for Refex Industries to capitalize on this opportunity and potentially secure similar projects in the future.

Refex Industries Limited , a diversified company with interests in ash and coal handling, refrigerant gases, and green mobility, has reported a significant decline in revenue for the first quarter. The company's consolidated financial results, approved by its Board of Directors on August 12, reveal the impact of challenging weather conditions on its operations.

Financial Performance

Refex Industries posted consolidated revenue of ₹394.51 crore for Q1, marking a 36% decrease from ₹597.21 crore in the corresponding quarter of the previous year. Despite the revenue decline, the company managed to improve its EBITDA margin to 9.80% from 8.14% year-over-year, demonstrating effective cost management and operational efficiency.

The company's net profit for the quarter stood at ₹20.37 crore, down from ₹29.35 crore in the same quarter of the previous year. This represents a 30.6% decrease in net profit year-over-year.

Segment-wise Performance

The Ash & Coal Handling business remained the primary revenue driver, contributing ₹347.08 crore to the total revenue. The Green Mobility segment generated ₹17.24 crore, while the Refrigerant Gas division accounted for ₹14.15 crore.

Revenue Breakdown

Factors Affecting Performance

Chairman Anil Jain attributed the decline in performance to unusually early and intense monsoon conditions. Record rainfall temporarily slowed operations in the company's core Ash & Coal Handling business. However, the company maintained its margins through cost control measures and operational efficiency improvements.

Strategic Developments

Refex Industries' Board has approved the discontinuation of its Power Trading business segment. This decision stems from strategic considerations, including compressed trading margins, high regulatory costs, and limited synergy with the company's core operations. The Power Trading segment contributed only 4.48% to the company's turnover in the previous financial year.

New Contract Secured

Despite the challenging quarter, Refex Industries has secured a one-year contract worth approximately ₹47 crore for transportation of pond ash from a Maharashtra-based company. This domestic order involves the supply and services for pond ash transportation, aligning with the company's core competencies in ash handling.

Management Outlook

The management expects a recovery in the coming periods as the impact of the monsoon subsides and new contracts, including the recently secured pond ash transportation order, commence. The company's focus on its core competencies in ash and coal handling, along with its ventures in green mobility and refrigerant gases, is expected to drive future growth.

Corporate Governance and Leadership

Refex Industries has announced the appointment of several senior management personnel, including:

• Mr. Purvesh Madhusudan Kapadia as Group Chief Human Resource Officer
• Mr. Jagdish Jain as Business Head – Ash & Coal Handling

These appointments aim to strengthen the company's leadership team and drive strategic initiatives.

Dividend Declaration

The Board of Directors has declared a 1st Interim Dividend at the rate of 25% of face value (₹0.50 per equity share of ₹2 each). The dividend will be paid to eligible shareholders by September 11.

As Refex Industries navigates through the temporary setbacks caused by adverse weather conditions, the company remains focused on its long-term strategy of streamlining operations and capitalizing on its strengths in the ash and coal handling sector. The new ₹47 crore contract for pond ash transportation demonstrates the company's continued ability to secure significant orders in its core business area.