Blue Star net profit jumps two-fold to Rs 31.45 crore in September qtr

Air conditioning and commercial refrigeration firm Blue Star on Thursday reported over two-fold jump in consolidated net profit to Rs 31.45 crore for the second quarter ended September 30.

The company had posted a consolidated net profit of Rs 15.40 crore in the July-September quarter last fiscal, Blue Star said in a regulatory filing.

Its revenue from operations in the quarter rose 37.42 per cent to Rs 1,239.74 crore, against Rs 902.12 crore a year ago, the company said.

Blue Star's total expenses increased 35.58 per cent to Rs 1,200.65 crore, from Rs 885.52 crore.

"The quarter commenced on a strong note with an extended summer in the northern parts of the country. The Company witnessed healthy demand and robust volume growth for room air conditioners and refrigeration products in Q2FY22 compared to Q2FY21.

This was on account of the ebbing of the second wave of the pandemic and the consequent easing of restrictions combined with improvement in consumer sentiment," it said in a post earning statement.

Commercial, Manufacturing and other Institutional segments also revived.

"Most importantly, collections were healthy resulting in a substantial reduction in borrowings. Escalation in commodity prices, logistics costs and depreciation of the rupee exerted margin pressure, which was partially offset by price increases, cost reduction initiatives and improvement in operational efficiency," it added.

Its revenue from Electro-Mechanical Projects and Commercial Air Conditioning Systems was up 33.75 per cent at Rs 723.40 crore as against Rs 540.83 crore in Q2/FY2020-21.

Similarly, revenue from Unitary Products, which have a business of residential AC, was up 42.69 per cent at Rs 454.71 crore. It was Rs 318.65 crore in the corresponding quarter last fiscal.

Professional Electronics and Industrial Systems revenue was Rs 61.63 crore, up 44.53 per cent. It was Rs 42.64 crore in Q2 FY2020-21.

Over the Outlook, Blue Star Vice Chairman & Managing Director Vir S Advani said: "With the revenue reaching a pre-COVID level in Q2FY22, we expect the growth momentum to continue through Q3 and Q4 leading up to the next summer season".

"The pricing corrections will continue, depending on movement in input costs. At the same time, product cost rationalisation through value engineering and alternate designs, as well as operating cost reduction will be undertaken to counter the margin pressure, he added.

Shares of Blue Star Ltd on Thursday settled at Rs 935.90 on BSE, down 0.66 per cent from its previous close.