Blue Star chills after strong Q4 outcome

Blue Star rose 0.9% to Rs 711.90 at 11:21 IST on BSE after consolidated net profit surged 147.63% to Rs 37.17 crore on 18.56% growth in net sales to Rs 1371.79 crore in Q4 March 2017 over Q4 March 2016.

The result was announced after market hours yesterday, 9 May 2017.

Meanwhile, the S&P BSE Sensex was up 252.21 points or 0.84% at 30,185.46. The S&P BSE Mid-Cap index was up 133.72 points or 0.9% at 14,954.85

On BSE, so far 14,000 shares were traded in the counter as against average daily volume of 19,301 shares in the past one quarter. The stock hit a high of Rs 722.60 and a low of Rs 706 so far during the day. The stock had hit a record high of Rs 723.95 on 5 April 2017. The stock had hit a 52-week low of Rs 407.65 on 24 June 2016.

The stock had outperformed the market over the past one month till 9 May 2017, rising 5.47% compared with 1.21% rise in the Sensex. The scrip had also outperformed the market in past one quarter, rising 29.65% as against Sensex's 5.81% rise.

The mid-cap company has equity capital of Rs 19.11 crore. Face value per share is Rs 2.

Blue Star's consolidated net profit rose 17.44% to Rs 123.05 crore on 15.53% growth in net sales to Rs 4,387.73 crore in the year ended 31 March 2017 (FY 2017) over FY 2016. Blue Star said that consequent to the corporate restructuring implemented in FY 2016, previous year's numbers have been restated wherever required under IND AS and also to give effect to the restructuring. Therefore, the FY 2017 performance is not directly comparable with the previous year's numbers.

The company's consolidated total operating income rose 22% to Rs 4424.72 crore for FY 2017 over FY 2016 (excluding BSIL's operating income of Rs 205.09 crore). Operating Profit (PBIDTA excluding other non operating income) rose 20% Rs 256.99 crore in FY 2017 over FY 2016 (excluding BSIL's PBIDTA of Rs 31.16 crores).

Other income (including finance income) rose 45.97% to Rs 34.58 crores in FY 2017 over FY 2016 (excluding BSIL's other income of Rs 5.98 crore) mainly on account of higher interest on income tax refunds and net forex gain. There were no exceptional items during FY 2017 as compared to an exceptional expense of Rs 11.89 crore in FY 2016.

Carry forward order book as on 31 March 2017 grew by 21% to Rs 1940 crore in FY 2017 over FY 2016.

In its outlook, Blue Star said that while the electro-mechanical projects business continues to be adversely affected due to the slowdown in commercial construction, government-funded infrastructure projects have been witnessing some growth resulting in some traction in this segment. The unitary products business has been performing impressively driven by the company's strong brand equity and enhanced distribution footprint. Given the early onset of summer and the forecast of a normal monsoon coupled with addition of new product lines such as water purifiers and air purifiers, the prospects of this business look promising. Overall, the company is confident of sustaining its growth momentum in FY 2018 as well.

Blue Star is India's leading central airconditioning company. The company fulfils the airconditioning needs of a large number of corporate, commercial and residential customers and has also established leadership in the field of commercial refrigeration.

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