Blue Star records net profit of Rs 12.69 crore in Q1 FY22

Blue Star reported a consolidated net profit of Rs 12.69 crore in Q1 FY22 as against a net loss of Rs 19.66 crore in Q1 FY21.

Revenue from operations increased by 68.1% to Rs 1,052.04 crores in Q1 FY22 from Rs 626.02 crore in Q1 FY21.

On the segmental front, revenue of the electro-mechanical projects and commercial air conditioning systems grew by 61.7% YoY to Rs 505.24 crore in Q1 FY22. While inflow of orders from the factories and light industrial sector were encouraging, the order inflows from the commercial buildings sector continued to be impacted by challenges faced by that sector. Muted government expenditure continued to affect the order inflows from the infrastructure sector. Healthy traction from the industrial, healthcare, and pharma segments led to the commercial air conditioning systems business registering good growth.

Unitary products revenue grew by 83.9% YoY to Rs 505.37 crore in Q1 FY22. Despite the business disruption witnessed in Q1 FY22, expansion of conventional channels and increase in share of business from e-commerce portals coupled with favorable summer conditions in the northern region, enabled revenue growth in the room ACs business. Increased demand from the healthcare, pharma, food processing, and food delivery segments enabled growth in revenue for the commercial refrigeration business during the quarter.

The professional electronics and industrial systems business revenue grew by 7% YoY to Rs 41.43 crore in Q1 FY22, on the back of continued opportunities from the BFSI sector for data security solutions and order inflow for medical diagnostic equipment from the healthcare sector. The testing machines business also witnessed growth with a revival of investments in the manufacturing sector.

Operating profit (PBIDTA excluding other income and finance income) for the quarter came at Rs 42.23 crore compared to Rs 1.36 crore in Q1 FY21. The company reported a pre-tax profit of Rs 19.40 crore in Q1 FY22 as compared with a pre-tax loss of Rs 29.47 crore in Q1 FY21.

Tax expense for the quarter was Rs 6.52 crore as compared to a tax credit of Rs 9.52 crore in Q1 FY21.

Carried forward order book as on 30 June 2021 grew by 8% to Rs 3,152.30 crore as compared to Rs 2,918.66 crore as on 30 June 2020.

Despite short-term challenges to the operating cash flows during the quarter, net borrowing as on 30 June 2021, reduced to Rs 68.47 crore (debt equity ratio of 0.08) as compared to Rs 428.53 crore as on 30 June 2020 (debt equity ratio of 0.56) on account of prudent working capital management and other continuing capital preservation measures.

Vir S. Advani, vice chairman & managing director, Blue Star, said: With the capital investment cycle playing out in a significant manner, the demand for our products and services is expected to be robust. Consumer spending has resumed and we expect to witness healthy growth in demand. We will continue to focus on controlling operating costs and improving working capital efficiencies and operating cash flows.

Blue Star is an air-conditioning and commercial refrigeration company. The company conducts various activities, such as electrical, plumbing and fire-fighting services. Its segments include electro-mechanical projects and packaged air conditioning systems, and unitary products.

The scrip shed 0.08% to end at Rs 838.45 on the BSE. On the BSE, over 0.18 lakh shares were traded in the counter compared with average daily volumes of 4,672 shares in the past two weeks.

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