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Blue Star reports stellar Q1 earnings

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Capital Market
Last Updated : Aug 05 2022 | 1:17 PM IST

On consolidated basis, Blue Star's net profit surged to Rs 74.25 crore in Q1 FY23 from Rs 12.69 crore recorded in Q1 FY22.

Consolidated net sales climbed 87.3% to Rs 1,970.32 crore in Q1 FY23 as against Rs 1,052.04 crore posted in the corresponding quarter previous year.

The home appliances company said, With business and economic activities at 100% normalcy in Q1 FY23, the growth momentum witnessed in Q4 FY22 continued in Q1 FY23. After two consecutive summers disrupted by the Pandemic, this year witnessed a normal summer without any restrictions. Consequently, demand for all Blue Star's products and services witnessed an uptick compared to Q1 FY22. The performance stands out even when compared to Q1 FY20 which was the last comparable first quarter when business and economic activity were at normal levels.

The company's revenue from Electro-Mechanical Projects and Commercial Air Conditioning Systems business grew by 57% to Rs 793.43 crore in Q1 FY23 as compared to Rs 505.24 crore recorded in Q1 FY22. Unitary Products revenue soared 122.5% to Rs 1,124.21 crore in the first quarter as against Rs 505.37 crore posted in Q1 FY22. The Professional Electronics and Industrial Systems business revenue surged 27.2% to Rs 52.68 crore in Q1 FY23 from Rs 41.43 crore reported in the same period last year, on the back of continued opportunities from the Healthcare, BFSI, Industrial and a few Government sectors.

Profit before tax stood at Rs 100.69 crore in the first quarter, steeply higher than Rs 19.23 crore reported in Q1 FY22. The operating profit (PBIDTA excluding other income and finance income) for the quarter was Rs 123.31 crore, recording a growth of 192% as compared to Rs 42.23 crore in Q1 FY22.

Other Income (including Finance Income) surged 32.2% to Rs 10.51 crore in Q1 FY23 from Rs 7.95 crore reported in Q1 FY22. Finance Cost for the quarter marginally decreased to Rs 10.62 crores from Rs 10.73 crores in Q1 FY22.

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Carried Forward Order Book as on 30 June 2022, grew by 23.8% to Rs 39,01.48 crore, as compared to Rs 3,152.30 crores as on 30 June 2021.

Higher cash from operations coupled with a continued focus on working capital management enabled the company to end the quarter with a net cash balance of Rs 81.03 crore compared to a net borrowing of Rs 68.47 crore on 30 June 2021 (Net debt equity ratio of 0.08) after exercising the call option to redeem non-convertible debentures to the tune of Rs 175 crore in June 2022.

Commenting on the future outlook, Vir S. Advani, vice chairman & managing director of Blue Star said, I am happy that we could deliver good results for the third consecutive quarter in a row. While the momentum continues with healthy inflow of enquiries and orders for our products and services, we anticipate headwinds due to inflationary pressures, rising interest rates, weakening of Indian Rupee, and global recessionary concerns. However, considering the large carried forward order book for our B2B businesses, significantly lower rate of penetration of room air conditioners in India, commencement of capex and construction cycles, and softening of commodities, we are optimistic about the prospects for FY23.

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.

Shares of Blue Star were down 0.44% to Rs 996.40 on the BSE.

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First Published: Aug 05 2022 | 1:06 PM IST

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