Financial Performance For The Quarter Ended December 31, 2010 (Q3FY11)

Blue Star Limited reported Total Operating Income of Rs. 606.83 crore for the quarter ended December 31, 2010, a growth of 4% over the same period last year.

Operating Profit (PBIDT excluding Other Income) for the quarter declined by 18% to Rs. 47.28 crore.

Net Profit was lower by 47% at Rs. 22.36 crore compared to Rs. 42.34 crore in the same period last year mainly because of marginal topline growth, higher operating expenses and increase in interest costs. Moreover, Q3FY10 had an exceptional earning of Rs. 8.73 crore while there was no exceptional item in Q3FY11.

Earnings per share for the quarter (Face value of Rs. 2.00) stood at Rs. 2.49 vis-à-vis Rs. 4.71 in the corresponding quarter of the previous year.

In the Electro Mechanical Projects and Packaged Airconditioning segment, revenues declined by 5% in the quarter, and results by 41%. Cooling Products revenue registered a healthy increase of 35% in the quarter, driven mainly by higher room airconditioner sales. Segment results, increased by 23%. The Professional Electronics and Industrial Systems business revenues grew by 29%, while segment results registered a significant increase of 33%.

Carry Forward Order Book as on December 31, 2010 increased to Rs. 2073 crore compared to Rs. 1890 crore as at December 31, 2009, representing a growth of 10%.

Financial Performance For The Nine-Month Period Ended December 31, 2010

For the nine-month period ended December 31, 2010, the Company reported Total Operating Income of Rs. 1973.00 crore, as compared to Rs. 1674.71 crore over the same period in the previous year, representing growth of 18%.

Operating Profit (PBIDT excluding Other Income) declined marginally to Rs. 175.69 crore compared to Rs. 187.21 crore in the same period last year.

Net Profit at Rs. 98.15 crore was lower by 26% compared to Rs. 132.95 crore in the same period last year.

Outlook

Ashok M. Advani, Executive Chairman, says, “After 2 quarters of reasonable revenue growth, the Q3 slowdown is somewhat unexpected, largely due to sluggish progress on airconditioning projects and the slump in telecom airconditioning. This has impacted profits and cash flow to some extent. Looking ahead to the main summer season, the picture looks much better. Sales of airconditioners and refrigeration products have been healthy and continue to show robust growth prospects. The chief areas of concern are rising input costs due to high inflation of key raw materials which keep profit margins under pressure.”

For additional information, please contact: B Thiagarajan, President, Airconditioning & Refrigeration Products Group, Blue Star Limited, Bandbox House, 254D, Dr Annie Besant Road, Worli, Mumbai - 400 030 email: btn@bluestarindia.com Telephone: 66544000.