Exclusive: In chat with Anil Singhvi, Blue Star VC and MD Vir Advani talks about results, Budget 2021 and business outlook
Blue Star VC and MD Vir Advani said that there will be a lot of benefit from the budget as the government spending will increase. There will be spending in health, infra and PLI scheme which will be beneficial for the project business of the company
In 1943, with three people Blue Star started operations and now has over 30 offices with 3000 strong work force. The company exports in 18 countries. It has business interest in air conditioners and commercial refrigeration segments. The company was listed in 1969. In chat with Zee Business Managing Editor Anil Singhvi, Vice Chairman (VC) and Managing Director (MD) Vir Advani talks about quarterly results, business and much more. (#NewsParViews)
The EBIDTA is up by 43 per cent while the margins are up by over 7.5 per cent. Though the income has reduced by 9 per cent, the company has reported strong operational profits. Advani said that the Q3 FY21 was a good quarter for Blue Star. The revenue at Rs 1100 cr is 90 per cent of the recovery from the pre-Covid levels. He further said that the recovery in Q1 and Q2 was very less.
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He said that it will increase in Q4. He also said that the growth in EBIDTA is because the company has been able to maintain its gross margins. The company has reduced the cost of its products. Blue Star has also brought a lot of efficiency in its operating expenses. This has helped in growing the profits and this cost-cutting will continue in Q4 as well, he further said.
The company has also reduced its net debt.
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Budget 2021 takeaways
He said that there will be a lot of benefit from the budget as the government spending will increase. There will be spending in health, infra and PLI scheme which will be beneficial for the project business of the company.
On Prices
The company has announced price increases of 5-8 per cent from 1 January. The price has been increased because of the increase in raw material cost. He said the company will have to see how much of that could be passed on to the customers as the market is very competitive.
Road Ahead
There will be a greater recovery in Q4 and there will be good growth in the next financial year, Advani said.
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