In the second quarter ending on 30 September 2023, revenue from operations for Blue Star surged by 19.47 per cent to reach Rs 1,890.40 crore, compared to Rs 1,582.29 crore during the same period the previous year. The consolidated operating profit (PBIDTA excluding other income) for Q2 FY24 showed significant improvement, reaching Rs 122.69 crore (6.5 per cent of revenue), compared to Rs 85.59 crore in Q2 FY23 (5.4 per cent of revenue).
This improvement was driven by enhanced scale and higher gross margins. Other income, including treasury income, for Q2 FY24 amounted to Rs 12.96 crore, compared to Rs 8.55 crore in Q2 FY23. Tax expenses for 30 September 2023, were Rs 24.26 crore, compared to Rs 14.89 crore in Q2 FY23. The company’s profit before exceptional items increased substantially by 65.2 per cent to reach Rs 95.03 crore during the quarter, compared to Rs 57.53 crore in the corresponding quarter of the previous year.
The carried-forward order book as of 30 September 2023, showed significant growth, rising by 44.4 per cent to Rs 6,008.52 crore, compared to Rs 4,162.05 crore as of 30 September 2022.
Blue Star remains committed to expanding its manufacturing capacity, accelerating research and development, and pursuing digitalisation as part of its growth and profitability improvement strategies. Consequently, the capital employed as of 30 September 2023, increased to Rs 2,069.62 crore, compared to Rs 1,441.16 crore as of 30 September 2022.
The company ended the second quarter of FY24 with a net cash position of Rs 285.85 crore, compared to a net borrowing of Rs 392.62 crore as of 30 September 2022.
Revenue from the electro-mechanical projects and commercial air conditioning systems segment grew by 12.1 per cent to reach Rs 1,077.21 crore during the quarter, compared to Rs 961.22 crore in the same quarter of the previous year. Unitary Products revenue experienced substantial growth, rising by 38.0 per cent to Rs 729.49 crore in Q2 FY24, compared to Rs 528.69 crore in Q2 FY23.
However, the professional electronics and industrial systems segment witnessed a 9.4 per cent decline in revenue, reaching Rs 83.70 crore in the quarter, compared to Rs 92.38 crore in Q2 FY23, due to a slowdown in the data security business.
Blue Star reported renewed demand for its room air conditioners after an impact from unseasonal rains during the summer season. The corporate and commercial businesses continued to grow at a healthy pace. Margins improved across business segments due to the company’s focus on Total Cost Management and stability in commodity prices and exchange rates. The company also experienced a healthy order inflow, resulting in a record carried forward order book for the quarter.
Looking ahead, Vir S. Advani, Vice Chairman & Managing Director of Blue Star, expressed optimism about the company’s prospects in the second half of the year. The company recently raised Rs 1,000 crore in equity through a Qualified Institutional Placement (QIP) to support its growth plans and investments in developmental areas, given the robust demand from the corporate, commercial, and residential segments.
Blue Star is an Indian multinational company specialising in air conditioning, commercial refrigeration and mechanical, electrical, plumbing and firefighting (MEP).
