Standalone Financial Performance For 2010-11

Blue Star Limited reported Total Operating Income of Rs. 2888.57 crore for the year ended March 31, 2011, compared to Rs. 2537.23 crore earned last year, representing a growth of 14%.

Operating profit (PBIDT excluding Other Non-Operating Income) for the year at Rs. 278.33 crore declined by 7% mainly on account of inflationary increase in input costs and higher operating expenses.

Profit Before Tax (excluding exceptional items) declined 14% to Rs. 226.57 crore.

Net Profit declined significantly to Rs. 155 crore compared to Rs. 211.49 crore in FY10, owing to higher tax provision. Moreover, FY10 had an exceptional earning of Rs. 13.97 crore while the exceptional income in FY11 was only Rs. 0.43 crore.

Earnings per share for FY11 (Face value of Rs 2.00) stood at Rs. 17.23 vis-à-vis Rs. 23.52 in the previous year.

The Electro Mechanical projects and Packaged Airconditioners business accounting for 65% of the total revenues, grew a modest 4% during the year, while segment results declined by 18%. Billings and cash flow were adversely impacted due to slowdown in the completion of large projects. Cooling Products revenue registered a healthy increase of 36% in the year driven by enhanced demand for room airconditioners and refrigeration products. However, Segment results grew only 12%, due to a significant rise in input costs. The Professional Electronics and Industrial Systems business continued to contribute to the profitability of the Company. While the segment revenues grew 40%, segment results grew 20%.

Carry Forward Order Book as on March 31, 2011 grew by 16% to Rs. 1968 crore compared to the order book of Rs. 1699 crore as at March 31, 2010.

Dividend

The Board of Directors have proposed a dividend of Rs. 7.00 per equity share (Face value of Rs. 2.00), as compared to Rs. 8.00 last year.

Consolidated Financial Performance For 2010-11

On a consolidated basis, Total Operating Income stood at Rs. 3008.24 crore for the year ended March 31, 2011. The consolidated financial results include the results of the Company's wholly owned subsidiary Blue Star Electro Mechanical Limited, joint ventures namely, Blue Star M& E Engineering SDN BHD, Malaysia, Blue Star Qatar (WLL) and Blue Star Design & Engineering Limited and the share of profit in the associate company Blue Star Infotech Limited.

Operating profit (PBIDT excluding Other Non-Operating Income) for the year was Rs. 286.58 crore.

Profit Before Tax (excluding exceptional items) stood at Rs. 230.70 crore, while Net Profit was Rs. 160.97 crore.

Performance For Q4FY11

Total Operating Income at Rs. 915.56 crore registered a growth of 6% over the same period last year.

Operating profit for the quarter at Rs. 102.64 crore declined by 8% compared to PBDIT of Rs. 111.84 crore earned in Q4FY10.

Net Profit at Rs. 56.85 showed a 27% decline due to higher interest and tax expenses.

Outlook

Ashok M Advani, Executive Chairman, says "The general economic outlook for the Indian Economy for FY12 indicates a slower rate of GDP growth than FY11. Inflation remains stubbornly high which will continue to squeeze margins. Rising interest rates and slow down in cash flow will also affect business growth. We are tackling these challenges by tough cost control measures and a focus on cash collections with control of working capital."

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.