Leading airconditioner manufacturer Blue Star sees a recovery in business activity going forward. The company had incurred a net loss of Rs 89 crore in the previous fiscal, the first annual loss in last several years.
“The company is on track to make a modest profit this year. However, I must caution you that the global economy and India, in particular, continue to slow down and face a difficult, uncertain future. A full recovery of Blue Star’s growth and profitability is likely to take some time due to the challenging business environment,” chairman Ashok M Advani told shareholders in the annual general meeting held on July 31. The company shared the update from the meeting with the stock exchanges today. Its stock price at the Bomnbay Stock Exchange closed at Rs 176.40, up 3.46% from the previous day.
In the first quarter ended June 30, the company had reported net profit of Rs 20.54 crore on an income of Rs 731 crore.
Referring to the challenging business environment, Advani said it is now important for the company to reinvent itself in a new paradigm and build on the core values and rich heritage of the company.
According to Advani, the immediate short-term prospects for the business appear to be muted, but considering the huge penetration gap in airconditioning and refrigeration, the opportunities ahead are attractive and exciting.