Refex Industries Limited (NSE: REFEX) Q2 2025 Earnings Call dated Nov. 14, 2024
Corporate Participants:
Anil Jain — Managing Director
Analysts:
Chandni Chande — Analyst
CA Amit Kaur — Analyst
Vidya Shankar — Analyst
Abhay Sharma — Analyst
Surendra Kumar — Analyst
Rachna Sharma — Analyst
Tara Kaur — Analyst
Thomas — Analyst
Karan — Analyst
Krishan Choudhary — Analyst
Priya Jain — Analyst
Mahesh Seth — Analyst
Dheeraj Yadav — Analyst
Aditi Roy — Analyst
Presentation:
Operator
Ladies and Gentlemen, Good day and welcome to Refex Industries Limited Q2 and H1 FY ’25 Results Conference Call hosted by Kirin Advisors. As a reminder, all participant line will be in listen-only mode and there will be an opportunity for you to ask questions after the presentation concludes. [Operator Instructions] Please note that this conference is being recorded.
I now hand the conference over to Ms. Chandni Chande from Kirin Advisors.
Chandni Chande — Analyst
Thank you. On the behalf of Kirin Advisors, I welcome you all to the conference call of Refex Industries Limited. From management team we have Mr. Anil Jain, Chairman, Managing Director; Mr. Dinesh Agarwal, Whole Time Director and CFO.
Now I hand over the call to Mr. Anil Jain. Over to you sir.
Anil Jain — Managing Director
Good morning, everyone. On behalf of the entire team of Refex Industries, I would like to extend a warm welcome to all of you for joining us for Q2 and H1 FY ’25 earnings conference call. We appreciate your interest and participation as we take this opportunity to discuss the performance of our company during the recent quarter and half year.
Before we get into the financial performance for the quarter and half year, I would like to highlight the significant progress we have made in transforming Refex into a diversified, multifaceted business.
Over the past few years, we have strategically expanded into new areas, positioning ourselves for continued growth and developments. Refex has developed a well founded [Indecipherable] planning, spanning ash and coal handling, refrigerant gases, green mobility, and power trading. Our journey began with the supply of eco-friendly refrigerant gases where we established ourselves as a market leader in India’s hydrofluorocarbon sector. We have recently achieved a credit rating upgrade of A minus with stable outlook, reflecting our stronger financial position and the stronger business growing with us. This upgrade is a testament to the robustness of our performance in key segments such as ash and coal handling, power trading, refrigerant gases, and green mobility. Furthermore, we have successfully completed a potential allotment of equity shares and warrants, raising a total of INR905.44 crores. This includes the issuance of 81,77,068 equity shares to non-promoters amounting to INR382.69 crores and 1,11,70,000 warrants to both promoters and non-promoters, valued at INR522.76 crores.
Now, let’s take a closer look at the financial performance of Q2 and H1 FY ’25. We report strong performance for Q2 FY ’25. Standalone total income reached INR527.64 crores at.48.58% year-on-year growth compared to Q2 FY ’24. For H1 FY ’25, total income was INR1,119.69 crores which is up by 51.64%. The EBITDA for Q2 FY ’25 was INR47.69 crores, a 36.16% increase and for H1 FY ’25, the EBITDA was up by 39.58% to INR99.94 crores. Net profit for FY ’25 [Phonetic] surged to 59.44% to INR37.32 crores and for H1, net profit increased by 61.35% to INR73.28 crores. EPS diluted for Q2 FY ’25 stood at INR3.10, up 47.62% and for H1 FY ’25, the EPS increased to INR6.17, up 51.23%.
Consolidated results also show a strong growth. Consolidated total income for Q2 FY ’25 was INR534.73 crores at 49.61% increase, while for H1 FY ’25 total income grew by 52.63% to INR1,131.94 crores. Consolidated EBITDA for Q2 FY ’25 was INR46.44 crores, up 35.93% and for H1 FY ’25 it grew by 24.44%[Phonetic] to INR94.87 crores. The same consolidated net profit for Q2 FY ’25 was INR31.06 crores, resulting in a 44.88% growth and for H1 FY ’25 net profit grew by 41.79% to INR60.41 [Phonetic] crores.
Now, let me take you through the performance of our individual business segments. Ash and Coal Handling, this segment remains the backbone of our operations, contributing about INR407.81 crores in revenue in Q2 FY ’25. We continue to expand our daily handling capacity which currently stands at 50,000 metric ton and are committed to providing a sustainable solution for ash disposal and coal procurement. This segment has experienced robust growth with the year-on-year increase of 32%.
Our Power Trading Business — next is Power Trading. Our Power Trading business has achieved phenomenal growth with revenue of INR91.81 crores in Q2 FY ’25 making a 1,829% increase year-on-year. Refrigerant Gas segment continues to perform well contributing about INR13.63 crores of revenue in Q2 FY ’25. Solar Power Initiative has a steady momentum of INR3.26 crores in revenue in Q2 FY 2025 further solidifying our position in renewable energy space.
Green Energy. Refex Green Mobility Limited has experienced remarkable growth with revenue of INR7.85 crores in Q2 FY ’25, reflecting our growth in line with the increasing demand for sustainable mobility solutions and underlying strategic investment in the sector. Looking ahead, we remain focused on leveraging our expertise to build on the momentum across diverse sectors and expand our portfolio in line with our sustainable growth strategy. The recent capital raise through preferential issue of equity shares and warrants will enable us to pursue ambitious plans — expansion plans that enhance our operational capabilities. Our growth initiatives are driven by the increasing demand for eco-friendly solutions in the ash handling, energy, mobility, and power sectors. While the continued focus on technology and operational improvement positions, Refex Industries is at the forefront of India’s Green Transformation. These achievements reflect our commitment to sustainable green innovation and value creation and we are confident in our path towards long-term growth and consistent value delivery to our stakeholders.
Thank you all for your continued support. I would like to open the floor for questions now.
Questions and Answers:
Operator
Thank you very much. We will now begin the question-and-answer session. [Operator Instructions] We have first question from the line of CA Amit Kaur from Investor [Phonetic]. Please go ahead.
Amit sir, your line is unmuted. Please go ahead.
CA Amit Kaur
Am I audible?
Operator
Yes sir.
CA Amit Kaur
Thank you for the opportunity and congratulations on a good set of numbers. So, just wanted to know what could be the guidance for the rest of the half — H2 and for may be next FY ’26 and FY ’27? This is the first question. And what is the status of our fleet, like how many fleets we have added and what is our target for may be one or two years?
Anil Jain
Currently in the EV sector, we have about 765 cars and in our ash handling, we have close to about 93 vehicles currently onboarded. We plan to add another 100 vehicles in this time of month. And for EV, we also plan to add a few more vehicles in the third [Phonetic] quarter. And on the guidance, I think the business is doing very well. For the next two years, we see a great demand in our fleet vehicles due to the shift of large corporates to sustainable companies, sustainable transportation of their employees. And also, under Scope 3 ESG compliance, companies will have to start ensuring that their employees’ transportation is also covered under charter maintenance. And in the ash handling, we see that the push from government to remove the legacy ash is also quite strong. So, we see that growth in that sector also being very robust for the next two years.
CA Amit Kaur
Guidance — can you give us guidance like in the top line guidance in 40% CAGR for the next three years or any specific guidance you want to give?
Anil Jain
No, currently, we are not having any guidance on this as of now.
CA Amit Kaur
Okay, okay. And there is a preferential issue like I was reading in the notes, the INR405 crores and INR522 crores, is it raised or yet to be raised?
Anil Jain
Already raised. We already raised INR905 crores [Indecipherable] of which INR382.69 crores was non-promoters and INR522 crores [Indecipherable].
CA Amit Kaur
And will it be used for organic growth or inorganic growth?
Anil Jain
As of now, we are looking at organic growth. Most of this money, about INR260 crores is going to be invested in our facilities. Rest all are going to be used for organic growth for both working capital and retail and performance and capex in different industries.
CA Amit Kaur
Okay, thank you. Thank you.
Operator
Thank you very much. We have next question from Vidya Shankar, an Individual Investor. Please go ahead.
Vidya Shankar
Hello? Am I audible?
Anil Jain
Yes, yes, go ahead.
Vidya Shankar
Good morning Anil sir. I am back.
Anil Jain
Yes, welcome back sir.
Vidya Shankar
Yes sir. The AGM, my question got half addressed. I wanted to actually counter the same question because obviously when the company has performed everything as per my expectations, there is hardly anything. And I congratulate you for the meritorious achievement and keeping up with the expectations, rather beating it. In the AGM, we were talking about Vision 2030 and you had countered saying, we are not in an industry which can think that far ahead. So I wanted to actually counter it saying, let us, at least have a Vision ’25. We are in 2024. We can have it year-wise, a vision and a mission statement for ’25 and then take it forward from there, one year at a time or maybe 18 months at a time. The way the organization and the management can feel comfortable. I think but we should have some vision and mission document in place which will guide the board, your core team and obviously the stakeholders. Thank you so much, sir.
Anil Jain
We will publish it on our website sir.
Vidya Shankar
I didn’t understand you, sir.
Anil Jain
The vision document we will publish it on our website. Yearly vision and mission will publish it sir.
Vidya Shankar
Correct sir. Last time our discussion was it cannot be for Vision 2030 too far. So let us have it for ’25 on your website.
Anil Jain
Sure. We will — for ’25 we will prepare one and publish it.
Vidya Shankar
Yes sir. Once you prepare, you can publish it. It will be a great thing to have.
Anil Jain
Thank you. Thank you. We will do it as soon.
Vidya Shankar
Thank you so much. Super congratulations.
Anil Jain
Thank you so much.
Operator
Thank you. [Operator Instructions] We have a question from Abhay Sharma from JC Capital. Please go ahead.
Abhay Sharma
Hello?
Operator
Yes sir, go ahead.
Abhay Sharma
Sir, my question is what factors drove the 49.61% increase in consolidated total income and can this growth rate be expected to sustain in the coming quarters?
Anil Jain
[Indecipherable] growth has been due to the increase in the Ash and Coal Handling business and this growth looks sustainable for going forward also.
Abhay Sharma
Hello?
Anil Jain
Yeah, the majority of the growth is from Ash And Coal Handling business and this growth is sustainable sir.
Abhay Sharma
Sir, my next question is with ash and coal handling contribution, the largest revenue share, what are the growth expectations for this segment and how will Refex maintain or grow its market share?
Anil Jain
We currently have put in systems and process in place wherein I think most of our customers are quite comfortable and dependent on us for their ash disposal and handling business. So we are quite comfortable that this business will be sustaining and will grow on the similar lines year-on-year.
Abhay Sharma
Okay, sir. Thank you, sir.
Anil Jain
Welcome.
Operator
Thank you very much. We have next question from the line of Surendra Kumar, an investor. Please go ahead.
Surendra Kumar
Hi, good morning. Am I audible?
Anil Jain
Yes, good morning. You are audible. Please go ahead.
Surendra Kumar
So hi. Congratulations. Earlier this year, in the month of March, we have seen around INR600 level. We have seen the stock split from face value 10 to 2. And we again did that INR600 level but because of that correction, we are trading around 500 level right now. So if it is just again 600, 700 level, can we see again the split or bonus kind of things?
Anil Jain
Currently, we do not have any plan sir. At the right time, if there is any decision taken by management, we will keep the shareholders and stock exchange informed.
Surendra Kumar
Okay, okay. Thank you so much.
Anil Jain
Welcome sir.
Operator
Thank you. We have next question from Tara Kaur from VRL Capital. Please go ahead. Your line is unmuted ma’am. Please go ahead.
Since there is no response from Tara Kaur, we will proceed with next question. We have a question from the line of Rachna Sharma, an Individual Investor. Please go ahead.
Rachna Sharma
Hello?
Operator
Yes ma’am. Please go ahead.
Rachna Sharma
My question is, what are the main risks facing each of Refex business units and how does the company mitigate these risks, particularly with commodity price volatility in coal?
Anil Jain
We do not have any risk in this coal business [Indecipherable] keep saying that all our coal businesses are purely back to back. We don’t have any price risk in that. And apart from that, we are not having any kind of commodity which we are trading into. The other business risk from the ash handling such as — ash, here risk is about foreign currency which we try and hedge whenever possible. And other regulatory business, ash handling business is more so with government tenders so — which again are price, the L1 will be determined as the winners. So these are the risks we face and we have been mitigating these risks and winning contracts continuously from large public sectors.
Rachna Sharma
Okay. And so my next question is, given recent investment in green mobility, how does Refex plan to capture demand in corporate transportation and B2B, B2C sectors?
Anil Jain
All our businesses are B2B mostly and this business is purely through large corporates. We have a large feet on ground sales team which is meeting customers and large corporates continuously and promoting our services. And more so our technology platform is very robust where the employee can log-in —.
Rachna Sharma
Hello?
Operator
Line for management is connected. Sir, your line is connected. Please respond. The line for management is connected. Sir, please reply.
Anil Jain
Okay. So we were able to hear earlier. I shared that for employee transportation, we have a robust technology platform in place which assists all the employees to directly log-in, log-out for their pickup and drop back meetings and automatically re-booking and re-boosting transportation employees. This helps large corporates in case of their front job. So which is able to help us achieve remote customers. We have a large feet on ground sales team also which is able to go meet large corporates and get them on board for employee transportation. And then third is the solution which you provided very equitably and carbon abatement for large companies which is also an attracting for them to look at traders.
Rachna Sharma
Okay. Okay, sir. Thank you so much, sir. That’s it from my side.
Anil Jain
Welcome.
Operator
Thank you very much. [Operator Instructions] We have Tara Kaur from VRL Capital back on line with us. Please go ahead.
Tara Kaur
Thank you for the opportunity. My question is that with the Refrigerant gas business contributing a relatively small share, does we see a potential to scale the segment or any other segment that we should prioritize for expansion?
Anil Jain
The company’s total going forward will be around ash and coal handling business. There is a gap it’s been contributing the same time over the years. And the market for this is very limited. So we don’t see a large growth in this sector [Indecipherable] — in this business.
Operator
Ma’am, does that answer your question?
Tara Kaur
Yeah, and following to that only, my next question is that how do we plan to scale the green mobility initiative that we are working on? And what specific growth strategies in place to penetrate the EV market going further? Because we are seeing the EV market has a good potential. The industry is very good.
Anil Jain
Like I just previously answered the question to the previous caller also. EV business is mostly offered inside our production business where we have a very robust technology platform, which we are able to do stream of employees, transportation and offering power etc., which helps large corporates to ease out the products cost from their side. Similarly, we have a large sales team feet on ground who is able to go meet new corporates to convert them to use electric vehicles and stuff [Indecipherable]
Operator
Okay. Thank you. Sir, my last question is that any specific R&D, VR initiative for, you know, working on to improve our efficiency and operating costs and, you know, reduce our costs and enhance the further profitability and sustainability?
Anil Jain
We are obviously working on the logistics technology to use technology in logistics and make the movement of vehicles as resilient as possible to ensure that the profitability increases. Also, we have been doing a lot of R&D in the medical usage of ash apart from the usage in road construction, mining, and cement to see if there could be an alternate way to utilize the ash. We are also looking at various other areas of disposing the ash. And on the employee transportation, we are trying to see if we can move to other cities now. We are in Chennai and Bangalore. We are trying to go to other cities. We are doing our own research and planning to see how do we grow our resources.
Tara Kaur
Okay, sir. Thank you. That’s all from my side.
Anil Jain
You’re welcome.
Operator
Thank you. Thank you, sir. Thank you, ma’am. We have next question from Mr. Thomas, an Individual Investor. Go ahead, please.
Thomas
Yeah, good morning. Thank you for the opportunity. My question is pertaining to RL Fine Chemicals. It is part of your website, but I’m not able to see the details in the investor presentation. So my query is, is it part of the revenue for Refex Industries? And if so, what is the way forward for this company?
Anil Jain
RL Chemicals is not part of Refex Industries.
Thomas
Okay. Thank you.
Anil Jain
It is part of Reflex Renewables.
Thomas
Okay. Thank you for answering that question.
Operator
Thank you very much. Next question we have is from Karan, an Individual Investor. Go ahead, please.
Karan
Good morning, sir. And thank you for the opportunity. My first question is that in the last con call, you have mentioned that this year we will be doing 18 million tons of handling. And last year we have done 6 million. So can you give the number in H1 how much million tons the handling has been done?
Anil Jain
We have done about 5.4 million tons in the H1.
Karan
Sorry, 5.4.
Anil Jain
Yeah, we have done about 5 million tons in H1, sir.
Karan
So this full year your guidance was 18 million. So is it possible in H2, 18 million is possible?
Anil Jain
Yes, yes. We will be completing 18 million by the end of the year. Total for the year will be 18 million, not for H2.
Karan
Okay.
Anil Jain
H2 will be doing 14 million.
Karan
H2 will be –?
Anil Jain
13 million.
Karan
Okay, 14 million.
Anil Jain
13 million. Full year will be 18 million. We have done about 5 million in H1 and H2 will be roughly about 13 million.
Karan
Okay. Okay. Thank you so much. And second question is about receivables. Why such a high receivables? Any particular reason?
Anil Jain
Most of our contracts are with public sector and government companies. And by the time we collect the ash, dispose it, and the billing, the approval of the bills at the site happens and goes for payment, it’s a longer process. So currently the receivables have gone up to 75 to 90 days from earlier 60 to 90 days, it has gone up to another 15 days.
Karan
Okay, sir. Thank you so much.
Anil Jain
You’re welcome, sir.
Operator
Thank you. [Operator Instructions] We have a question from Krishan Choudhary [Phonetic], an Individual Investor. Go ahead.
Krishan Choudhary
Good morning, sir. I just have one question. Like, we mentioned in the investor presentation that we do about 50,000 metric tons of ash handling daily. So I just wanted to get a perspective of how does that translate in revenue terms? Like, how is the price for that determined? Is it based on the prices of coal or on the basis of the freight rates that are going on in the market? I just wanted a perspective on that, sir.
Anil Jain
The total ash handling is 50,000 metric tons. The prices are varying between multiple companies. Some prices are based on number of kilometers we move to handle the ash. Some are based on [Indecipherable].
Operator
Sorry for interrupting, sir. There is a break in voice from management side.
Anil Jain
I was saying that the volume is very clearly determined. The prices are very different for every company. Every company has a different pricing based on the number of kilometers we have to dispose the ash. Some have fixed prices and the fixed distance. Some have variable distance to the project. For example, you start with 100 kilometers and then it goes up to 300 kilometers of distance from one power plant. So this price is very variable.
Krishan Choudhary
Okay, sir. [Speech Overlap] It is not dependent on the commodity price, right, sir?
Anil Jain
No, it is not.
Krishan Choudhary
Okay, thank you, sir. Thank you.
Anil Jain
Welcome.
Operator
Thank you. We have next question from Priya Jain from Green Capital. Go ahead, please.
Priya Jain
Hello, good morning, sir. My question is, given the emphasis on sustainability, could you outline specific initiative or target set by Refex to achieve long-term
Environmental goals?
Anil Jain
You mean on the energy side? I didn’t understand what is the meaning of long-term environmental goals.
Priya Jain
My question is, given the emphasis on sustainability, could you outline specific initiative or target set by your company to achieve long-term environmental goals?
Anil Jain
One moment, please. So we have some of the targets that we have achieved is to plant 1 lakh trees in the next two, three years. We are doing a lot of revamping of ponds, water bodies, etc. We are a completely ESG compliant company. We have an ESG sustainability report which we publish every year. Also reduce the water body sustainability, [Indecipherable] etcetera. Our manufacturing plant is 100% up and operating [Indecipherable].
Priya Jain
Okay, sir. I have a specific question regarding coal handling and power trading. How does the company anticipate changes in environmental regulations and policies will impact its operations, particularly in coal handling and power trading?
Anil Jain
I don’t see because there is no power, this is the firm power in the world. Everybody — India has to be dependent on thermal power plants. So the dependency on thermal power plants will not stop. If you see in the last, yesterday’s news paper also, [Indecipherable] has given a contract for close to INR15,000 crores to L&T for building new thermal power plants. So we see a continued growth in this sector. And we are only ancillary to this thing. Unless there is a power plants which — unless power plants are replaced with some other commodity, I don’t see any change in business model for us. And on the power trading also, we do power trading of all types of power, thermal power, renewable power, all the power. So I don’t see any requirement of power. This will be continuously available.
Priya Jain
Okay, sir. I have one more question about geographical location. So, are there specific geographical regions or new segments where Refex plans to expand its presence? And what timeline can investors expect for these initiatives?
Anil Jain
On geographical, we are present across the country. We don’t have any restriction on geographies.
Priya Jain
Okay. Sir, would you like to quote any timeline for this?
Anil Jain
I didn’t understand the question. Can you repeat your question, please?
Priya Jain
Yes, sure. So my question is, are there any specific geographic region or new segment where Refex plans to expand? My question is regarding expansion. And would you like to quote any —.
Anil Jain
No, we are operating across the country. And we are planning to start the export for that one. But which is currently under evaluation. And there is no specific timeline.
Priya Jain
Okay, sir. That’s it for my side. Thank you and all the best.
Anil Jain
Thank you.
Operator
Thank you very much. We have a question from Vidya Shankar, an Individual Investor. Go ahead, please.
Vidya Shankar
Yes, sir. So the question is regarding further stock split. We are now at INR2, right?
Anil Jain
Currently, there is no plan for any further stock split.
Vidya Shankar
Okay. And any possibility of bonus, sir, that we can expect for the next AGM?
Anil Jain
There’s no discussion on this by all our management, sir.
Vidya Shankar
So, no discussion. Okay. And sir, any fresh revenue stream that you are targeting other than —.
Anil Jain
No, sir. Currently, we are only focusing on the existing revenue stream, sir.
Vidya Shankar
Existing only. So further revenue diversification is rolled out.
Anil Jain
Yes, sir.
Vidya Shankar
Which means we are sufficiently diversified also. So that is also a positive thing to look at. Over a period of two years, I’ve been seeing that you have been diversifying. And initially, that was the concern. But I used to explain that just like we diversify our portfolio, company also should diversify individual portfolio. So I think that is a step in the right direction. And now you are optimally diversified is what I can look at it. I hope I’ve understood it right?
Anil Jain
Yes, sir. Its correct, sir.
Vidya Shankar
Yes, thank you so much, sir. Look forward for the bonus. Thank you.
Operator
Thank you very much. [Operator Instructions] We have a question from Mahesh Seth, an Individual Investor. Go ahead, please.
Mahesh Seth
Hello?
Operator
Yes sir, please go ahead.
Mahesh Seth
Yeah, good morning. And my first question is like EBITDA growth was —.
Operator
Sorry for interrupting. Mahesh, sir, can you be a bit more loud?
Mahesh Seth
Can you hear me now?
Operator
Much better sir.
Mahesh Seth
Yeah, so my first question is EBITDA growth was strong. But can you provide insight into specific cost-saving measures or efficiency improvement that contributed to this rise?
Anil Jain
So, the revenue itself is grown. So, that’s why the percentage of EBITDA if you see comparatively is grown. Second, on the ash handling, the segment-wise business has grown in ash handling. So that’s why ash is a better [Indecipherable] if you see the percentage of EBITDA, there is not much change. But it changed due to the phase composition of the different segments. So suppose this time we have the higher ash volume. So, the EBITDA has decreased.
Mahesh Seth
And my next question is, despite a significant increase –.
Anil Jain
Sir, you are not audible, sir. Can you be a little louder, please?
Mahesh Seth
Yeah, can you hear me?
Anil Jain
Yeah.
Mahesh Seth
So despite significant increase in revenue and EBITDA, how is Refex planning to improve profit margins further, particularly in ash and coal handling? And power trading segments?
Anil Jain
So like we’ve always been telling that our whole business is a back-to-back contract where we don’t take any price risk. So the margins there have been sustainable and been almost similar. So I don’t see any increase in the percentage of profit there. But the ash handling, we’ve been trying to deploy a lot of our own vehicles also going forward to improve the margins there. So there, we see a better improvement in margins going forward, sir. In power trading also, it’s a regulated business. So the margins will be similar and we don’t see any large growth in the percentage of margins in our power trading business, sir.
Mahesh Seth
Okay, okay. Got it. Got it. That’s it for my side. Thank you.
Anil Jain
Thank you, sir.
Operator
Thank you very much. We take next question from the line of Dheeraj Yadav from Raj Industries [Phonetic]. Go ahead, please.
Dheeraj Yadav
Am I audible?
Operator
Yes sir.
Dheeraj Yadav
Yes. My question is, how does Refex subsidiary, which is Refex Green Mobility Limited, fit into the overall growth strategy and what specific performance metrics are set for it?
Anil Jain
Like we mentioned earlier that this business is purely focused on employee transportation for large corporates. This business is continuously growing. We are currently at an ARR of almost about INR28 crores — sorry, INR34 crores. And this looks like it will keep growing continuously. We are adding a lot of vehicles business by this year-end, we’ll have close to 2,000 vehicles. So this business looks positive for us going forward.
Dheeraj Yadav
Okay. And my next question is, based on our current performance and market trend, can Refex provide guidance on revenue and EBITDA growth for the remainder of FY ’25?
Anil Jain
The business is doing well. We don’t — we have not been sharing any numbers per se. Yes, the growth prospects are very good.
Dheeraj Yadav
Okay. And with the recent capital raise, how does Refex plan to manage its debt-to-equity ratio and its debt reduction a priority?
Anil Jain
Yes. The recent capital raise is almost INR60 crores is towards repayment. And debt reduction is the highest priority. And the debt density, most probably the investment is going to be on working capital side. So there will be a proper leverage for the –.
Dheeraj Yadav
What is Refex market share in each of its key business segments? And what target has the company set for near future?
Anil Jain
On the market share, Refex is a leader in the Ash Handling business. Currently, ash handling is a very unorganized market. We don’t see any large player who is very close to what we are doing. They are all very segmented in a particular state or a plant-based operation. We are working on a nationwide operation. So we don’t see — we don’t have the number per se of the market share of Refex when compared to others. And compared to the industry, we still are only up to about 2%, 3% of the market size. On the Refrigerant business, we have a very small market share. We are less than 10% of the market — less than 5% of the market share. Power trading is also a very tender-based business. There also, we don’t have any market share per se at the time also.
Dheeraj Yadav
Okay, sir. That takes [Indecipherable].
Anil Jain
Thank you.
Operator
Thank you very much. We have a question from Aditi Roy from Patel Advisors. Go ahead, please.
Aditi Roy
Congratulations, sir, for good numbers. My question is, can you elaborate on plant technology investments and how this will enhance operational efficiency across the portfolio?
Anil Jain
So we don’t have any plans. We have not mentioned about any plans for investments. We are a logistics company, providing logistics for coal and ash handling and power trading and [Indecipherable] we don’t have any expansion of — we don’t have any investment [Indecipherable].
Aditi Roy
Sir, and my next question is with a diversified business model, how does Refex see competition evolving in each segment? And what are the main competitive advantages?
Anil Jain
I just answered that question. We don’t have any competitive advantages. Our technology adoption and the early mover advantage we have. So we are present in every geography of the country and we are doing well. And the kind of work we are doing, the speed we perform, we close our tenders. So these are basically the advantages for us.
Aditi Roy
Okay sir. Thank you, sir. That’s it from my side and congratulations again.
Anil Jain
Thank you.
Operator
Thank you. [Operator Instructions] As there are no further questions, I would like to hand the conference over to Ms. Chandni for closing comments.
Chandni Chande
Thank you, everyone, for joining the conference of Refex Industry Limited. If you have any queries, you can write to us at research@kirinadvisors.com. Once again, thank you for joining the call. Thank you, sir.
Anil Jain
Thank you, everyone.
Operator
[Operator Closing Remarks]