Blue Star reported consolidated net loss of Rs 19.95 crore in Q1 June 2020 compared with net profit of Rs 75.44 crore in Q1 June 2019.
Consolidated net sales tanked 60.3% to Rs 626.02 crore in Q1 June 2020 as against Rs 1,575.45 crore in Q1 June 2019. Consolidated pre-tax loss stood at Rs 29.47 crore in Q1 June 2020 as compared to a pre-tax profit of Rs 107.96 crore in Q1 June 2019.
The operating profit (PBIDTA excluding Other Income and Finance Income) for the quarter was at Rs 1.36 crore as compared to Rs 114.85 crore in Q1FY20, registering a 98.81% drop Y-o-Y (year-on-year). Swift actions taken to reduce operating costs helped mitigate the adverse profitability impact to a large extent, the company said. The Q1 earnings was announced during trading hours today, 6 August 2020.
The company carried forward order book as on 30 June 2020 was Rs 2919 crore compared to Rs 2841 crore as on 30 June 2019.
The firm raised Rs 350 crore during the quarter through issuance of non-convertible debentures to fund working capital and to build liquidity on the balance sheet. Consequently, net borrowings increased to Rs 428.53 crore as on 30 June 2020 as compared to a net cash balance of Rs 0.74 crore as on 30 June 2019.
Speaking on the Q1 performance, Vir S. Advani, the vice chairman and managing director (MD) of Blue Star, has commented: "While Q1 FY21 was an extremely challenging quarter, we have been swiftly navigating and responding to the prevailing difficult situation with prudent and proactive measures. We continue to focus on ramping up revenue and diligently managing working capital controlling operating costs. We have cut the operating costs in line with the potential revenue loss and infused capital through long-term debt to strengthen the resilience of our balance sheet."
"The carried forward order book is healthy, and we will continue to prioritise project execution based on cash flow. As far as the Unitary Cooling Products business is concerned, we are maintaining market share in all categories. The demand is growing on month to month basis and it is expected to normalise by Q4 FY21. Growing investments by both public and private sectors in digitisation and healthcare segments are expected to provide opportunities for the Professional Electronics and Industrial Systems business. We are confident of overcoming this challenging phase with conviction and agility," he added.
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Shares of Blue Star added 4.65% to end at Rs 506.45 on BSE. Blue Star is an air-conditioning and commercial refrigeration company. The company conducts various activities, such as electrical, plumbing and fire-fighting services. Its segments include electro-mechanical projects and packaged air conditioning systems, and unitary products.
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