Blue Star Q3 results: Net profit up 72% to Rs 100.5 crore; revenue up 25% to Rs 2,241 crore

Air condition and commercial refrigeration system maker Blue Star Ltd on Tuesday reported a 72 per cent increase in consolidated net profit at Rs 100.46 crore in the third quarter ended December 2023, helped by robust sales in the festive season.

The company had posted a net profit of Rs 58.41 crore in the October-December quarter of the previous fiscal, according to a regulatory filing from Blue Star Ltd. Its revenue from operations was up 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.

Further, an improvement in operating margins was made due to the company's continued focus on total cost management, product portfolio optimisation and higher scale. Blue Star's total expenses were up 23.3 per cent to Rs 2,119.57 crore in the December quarter. Its total income in the December quarter was at Rs 2,253.86 crore, up 25.26 per cent.

Blue Star's revenue from the electro-mechanical projects and commercial air conditioning systems segment was up 17.87 per cent to Rs 1,182.30 crore in the December quarter of FY24. "In the Electro-Mechanical Projects business, order finalisations from factories and data centres remained healthy, it said.

The business witnessed a slowdown in order finalisations as well as inflow of tenders both in the commercial buildings segment and in the infrastructure segment, respectively.

Similarly, unitary product revenue grew by 35.51 per cent to Rs 955.38 crore in the December quarter. This was helped by a good festive season, in which the room air conditioner business registered a strong 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 revenue from professional electronics and industrial systems business revenue grew by 20.06 per cent to Rs 103.51 crore.

Meanwhile, in a separate filing Blue Star said its board in a meeting held on Tuesday approved the appointment of G Murlidhar and Vipin Sondhi as Independent Directors of the company for a term of five consecutive years effective from January 30, 2024.

Besides, it also approved the elevation of Vir S Advani as the Chairman of the Board and his re-designation as "Chairman & Managing Director" with effect from April 1, 2024. Shares of Blue Star Ltd on Tuesday closed at Rs 1,098.95 on BSE, up 1.66 per cent from the previous close.

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