Blue Star Q4 Results: Revenue Rises 26.8%, In Line With Estimates

Blue Star Ltd.'s net profit, excluding exceptional items, rose in the fourth quarter of fiscal 2024, in line with analysts' estimates.

The air conditioner-maker's net profit, excluding exceptional items, increased 85.6% year-on-year to Rs 159.7 crore in the quarter-ended March 2024, according to an exchange filing issued on Thursday. This compares with the Rs 152-crore consensus estimate of analysts polled by Bloomberg.

Revenue from operations rose 26.8% to Rs 3,328 crore during the period.

• Revenue up 26.8% at Rs 3,328 crore (Bloomberg estimate: Rs 3,213 crore).

• Ebitda rose 35% to Rs 242 crore (Bloomberg estimate: Rs 220 crore).

• Ebitda margin expanded 44 basis points to 7.26% (Bloomberg estimate: 7%).

• Net profit, excluding exceptional items, up 85.6% at Rs 159.7 crore (Bloomberg estimate: Rs 152 crore).

• Blue Star also recommended a final dividend of Rs 7 per equity share of Rs 2 per each for FY24.

Net profit, after exceptional items, stood at Rs 159.7 crore. This is in comparison with the Rs 225.3-crore figure from Q4 FY23.

The net profit dipped by 29%, but during FY23, Blue Star realised an exceptional gain of Rs 170.8 crore on sale of a land parcel at Thane. During fiscal 2024, no such exceptional income has been accounted for in the book of accounts.

The net profit figure, including exceptional items, are thus not comparable.

• Electro-mechanical projects business excelled with strong demand and enhanced margin.

• Commercial air conditioning saw growth in key sectors, boosted by new products and channel expansion.

• Unitary products maintained strong Q3 momentum into Q4, with high demand and successful launches of affordable ACs leading the room AC business to exceed 1 million units sold.

• Commercial refrigeration business grew significantly due to increased consumption of perishables and retail expansion.

• Professional electronics and industrial systems business saw growth in non-destructive testing, driven by expanded manufacturing and higher quality standards.

• Healthcare sector benefits from the expansion of semi-rural infrastructure and increased investments.

The qualified institutional placement of Rs 1,000 crore raised during FY24 has strengthened the company's balance sheet and enabled it to fund growth, said Vir S Advani, chairman and managing director of the company. The carried-forward order book for other businesses is healthy and Blue Star will sustain the momentum in FY25 as well, he said.

Blue Star's shares closed 1.35% lower, as compared with a 0.19% rise in the NSE Nifty 50.