Blue Star, which manufactures air conditioners and commercial refrigeration systems, recorded a 72 per cent increase in total net profit to Rs 100.46 crore in the third quarter that ended December 2023, boosted by strong sales over the Christmas season.
According to a regulatory filing from Blue Star, the business had a net profit of Rs 58.41 crore in the previous fiscal’s October-December quarter.
Its revenue from operations rose 25 per cent to Rs 2,241.19 crore during the quarter under review. It was at Rs 1,794.17 crore in the year-ago period.
“The company witnessed robust demand for its room air conditioners and commercial refrigeration products during the festive season. The growth momentum during the quarter was also evident in its commercial air conditioning as well as the electromechanical projects business. This resulted in the company registering a record Q3 in terms of revenue,” said an earning statement.
Furthermore, operational margins improved as a result of the company’s sustained focus on total cost control, product portfolio optimisation, and increased scale.
Blue Star’s overall costs increased 23.3 per cent to Rs 2,119.57 crore in the December quarter.
Its overall income for the December quarter was Rs 2,253.86 crore, up 25.26 per cent.
Blue Star’s sales from the electro-mechanical projects and commercial air conditioning systems sector increased 17.87 per cent to Rs 1,182.30 crore in the December quarter of FY 24.
“In the Electro-Mechanical Projects business, order finalisations from factories and data centres remained healthy, it said.
The firm saw a slowdown in order finalisations as well as an increase in bids in both the commercial buildings and infrastructure segments.
Similarly, unitary product sales increased by 35.51 per cent to Rs 955.38 crore in the December quarter. This was aided by a successful Christmas season, during which the room air conditioner industry experienced significant growth.
“Driven by enhanced demand for deep freezers and modular cold rooms, the commercial refrigeration business also witnessed significant growth during the quarter,” it said, adding stable raw material prices, exchange rates helped in profitability.
Its sales from the professional electronics and industrial systems businesses increased by 20.06 percent to Rs 103.51 crore.
Meanwhile, in a separate filing, Blue Star said its board authorised the nomination of G Murlidhar and Vipin Sondhi as the company’s Independent Directors for five years beginning 30 January 2024.
