Blue Star rose 1.15% to Rs 804.20 after consolidated net profit rose 94.1% to Rs 37.94 crore on a 21% jump in net sales to Rs 1,249.47 crore in Q2 September 2019 over Q2 September 2018.
The operating profit (PBIDTA excluding other income and finance income) for the quarter was Rs 73.58 crore compared to Rs 58.07 crore in Q2 FY19, a growth of 27%.
Other income (including finance income) for Q2 FY20 was Rs 10.60 crore compared to Rs 4.93 crore in Q2 FY19. Other income in Q2 FY20 was higher on account of higher interest on income tax refunds.
Finance cost for the quarter decreased to Rs 6.79 crore from Rs 11.67 crore in Q2 FY19 due to effective management of working capital and consequently lower borrowings quantum in Q2 FY20 and also due to lower cost of borrowings.
Tax expense for the quarter was Rs 16.88 crore compared to Rs 7.84 crore in Q2 FY19. The company has decided not to immediately opt for the lower rate of 22% corporate tax owing to the un-availed MAT credit to the tune of Rs 67 crore (consolidated). At the same time, it needed to account for higher tax expense during the quarter on account of increased profitability and unwinding of deferred tax asset created in earlier years.
The carried forward order book as on 30 September 2019, grew by 32.4% to Rs 2935 crore as compared to the carry forward order book as on 30 September 2018.
Vir Advani, vice chairman & managing director, Blue Star said, "The order book is healthy in the electro mechanical projects segment. However, pace of execution of projects continues to be constrained due to reduced credit flow to the real estate and infrastructure sectors. Unitary products segment continues to do well on increased demand from tier 3, 4 and 5 towns. With the Government providing stimuli to various sectors to boost the economy we remain confident of growth improving in the medium term."
Blue Star is an air conditioning and commercial refrigeration company. Blue Star's integrated business model of a manufacturer, contractor and after-sales service provider enables it to offer an end-to-end solution to its customers.
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