Post-summer demand surge boosts Blue Star’s business in Q2

Air-conditioning major Blue Star reported a 58 per cent jump in its consolidated net profit for the July-September quarter as demand for cooling products post-summer season boosted its finances. During the quarter, the company’s net profit grew to Rs 71 crore, up from Rs 42.6 crore in the corresponding quarter previous year.

Its operating revenue jumped 19.5 per cent to Rs 1,890 crore in Q2FY24 from Rs 1,582 crore in the year-ago period. Blue Star benefited from falling raw material prices. Its operating profit (PBIDTA excluding other income) for the quarter improved significantly to Rs 122.69 crores (6.5 per cent of its revenue) as compared to Rs 85.59 crore in Q2FY23 (5.4 per cent of revenue).

According to Vir S Advani, Vice Chairman & Managing Director, Blue Star, despite being a lean quarter, the company performed well in almost all the segments that it operates in and enhanced its profitability due to scale and higher gross margins.

“This quarter marked the completion of our 80 years of existence on September 27, 2023. Born during World War II, Blue Star’s ability to survive and prosper through these eight decades can be attributed to its customer focus and the trust it has earned as a dependable brand, its agility and ability to adapt to changing circumstances, and to its deep technical expertise in cooling.While the occasion marks our entry into an elite league of Indian companies that have achieved this milestone, we will now focus on the next phase of our journey. With the infusion of Rs 1000 crores equity from the recently concluded QIP, we intend to accelerate our growth plans and make prudent investments in several developmental areas that will help the Company scale further.Given the continued robust demand from the corporate, commercial, and residential segments, I remain optimistic about our prospects in H2,” he said in a post-earnings statement.

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