Financial Press Releases
Blue Star’s consolidated Q3FY19 revenue grows 18% to Rs 1098.97 crores

Consolidated Financial Performance for Q3FY19

• The Company has reported Revenue from Operations of Rs 1098.97 crores for the quarter ended December 31, 2018 on a consolidated basis, compared to Rs 932.04 crores during the same period in the previous year, representing a growth of 18%.

• The Operating Profit (PBIDTA excluding Other Income and Finance Income) for the quarter was Rs 42.34 crores compared to Rs 42.43 crores in Q3FY18.

• The Company reported a net loss of Rs 0.94 crores for the quarter due to one-time expenses on the Company’s Platinum Jubilee celebrations of Rs 7.17 crores and provision of Rs 14.46 crores towards exposure in its joint venture in Oman. In view of cost overruns in the projects executed by the joint venture and the unattractive business potential in Oman, the Company has decided to exit the joint venture. Accordingly, as a prudent measure, the entire residual exposure has been provided for.

• Other Income (including finance income) for Q3FY19 increased to Rs 10.37 crores compared to Rs 3.56 crores in Q3FY18, mainly on account of interest earned on income tax refunds.

• Financial Expenses for the quarter increased to Rs 13.10 crores from Rs 7.35 crores in Q3FY18 due to enhanced working capital requirements and the increased cost of funding amidst tighter liquidity conditions.

• The tax expense for the quarter was Rs 0.99 crores compared to Rs 5.83 crores in Q3FY18.

• The Carried Forward Order Book as on December 31, 2018 grew by 5% to Rs 2277 crores, compared to Rs 2163 crores as on December 31, 2017.

Consolidated Segment Performance for Q3FY19

• Revenue of the Electro-Mechanical Projects and Packaged Air Conditioning Systems business for the quarter increased by 16% to Rs 655.47 crores from Rs 566.11 crores in Q3FY18, while Segment Results remained almost flat at Rs 30.11 crores in Q3FY19 compared to Rs 30.47 crores in Q3FY18. Revenue growth during the quarter was driven by the increased pace of execution of projects, and a pick-up in the central air conditioning business, especially chillers and VRF systems. Profitability was impacted due to increase in material and input costs.

• Unitary Products revenues increased by 22% to Rs 391.52 crores from Rs 320.95 crores, driven by enhanced demand for deep freezers and storage water coolers in the commercial refrigeration business, and by growth in the air coolers and water purifiers businesses. However, Segment Results declined to Rs 9.39 crores compared to Rs 15.79 crores during the same period in the previous year, on account of pricing pressures in the room air conditioners business, owing to a build-up of inventory across the industry.

• Professional Electronics and Industrial Systems Business revenues increased by 16% from Rs 44.98 crores in Q3FY18 to Rs 51.98 crores, while Segment Results increased to Rs 6.86 crores from Rs 4.44 crores in Q3FY18. The growth in revenues and profitability was driven by increased revenues from the supply of CT scanners to the Government of Uttar Pradesh, and enhanced sales of non-destructive testing and data security solution products.

Consolidated Financial Performance for the 9 months ended December 31, 2018

• For the 9 months ended December 31, 2018, the Company reported Revenue from Operations of Rs 3639.00 crores compared to Rs 3301.80 crores over the same period in the previous year, a growth of 10%.

• Operating Profit (PBIDTA excluding Other Income and Finance Income) increased by 17% to Rs 237.07 crores from Rs 201.96 crores during the same period last year.

• Net Profit remained almost flat at Rs 110.19 crores compared to Rs 112.25 crores for the same period in the previous year, due to one-time expenses on Platinum Jubilee celebrations of Rs 9.89 crores, and a provision of Rs 24.28 crores towards exposure in the Company’s joint venture in Oman.

Effective April 1, 2018, Blue Star Limited has adopted Ind AS 115 and accordingly, has realigned its revenue recognition policies appropriately. The accounting changes have been applied with retrospective effect to each of the prior reporting periods presented.

Outlook

Suneel M Advani, Chairman of the Board, Blue Star Limited adds, “Despite this being a challenging quarter, revenues across segments moved upwards. We maintained our leadership position in all our businesses, and continued to grow faster than the market. I am confident that the continuing value engineering initiatives, rejigging of the product portfolio and several cost correction measures will yield improvement in profitability in the months ahead.”

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