Financial Performance For 2008-09

Central airconditioning and commercial refrigeration major Blue Star Limited reported Total Operating Income of Rs 2569.09 crore for the year ended March 31, 2009, representing 15% growth over previous year.

Operating profit (PBIDT excluding Other Income) for the year grew 16% to Rs 272.71 crore. Operating Margin was maintained at 10.6% compared to 10.5% in FY 08.

Profit Before Tax (excluding exceptional items) grew 15% to Rs 238.22 crore.

Net Profit at Rs 180.29 crore registered a marginal increase of 4% because last year included a non-recurring boost due to exceptional income of Rs 35.32 crore.

Earnings per share for FY09 (Face value of Rs 2.00) stood at Rs 20.04 vis-à-vis Rs 19.36 in the previous year.

The electro mechanical projects and packaged airconditioners business accounting for 69% of the total revenues, grew 15% during FY09. Segment results increased by 12% over the previous year. The cooling products segment also registered modest growth of 13% in the year. Segment results increased by 29% in the year. The Professional Electronics and Industrial Systems business continued to contribute significantly to the profitability of the Company. The business grew 21% during FY09, with segment results registering increase of 25%.

Carry Forward Order Book as on March 31, 2009 grew to Rs 1339 crore compared to the order book of Rs. 1135 crore as at March 31, 2008.

Dividend

The Board of Directors maintained the dividend at Rs 7.00 per equity share (Face value of Rs 2.00)

Performance For Q4FY09

Operating Profit for the quarter at Rs 94.31 crore grew 30%, though Total income at Rs 724.71 crore grew only marginally by 2%.

Operating Margin climbed to 13.0% compared to 10.2% in Q4FY08.

Owing to a tight control on employee and operating costs as well as lower interest costs, Profit Before Tax (excluding exceptional items) at Rs 87.54 crore registered healthy growth of 35% for the quarter.

Owing to the softening of raw material prices, tight cost control measures and enhanced price realizations, all three segments recorded significant growth in profitability during the quarter. The segment results of the electro mechanical projects and packaged airconditioning systems business registered a healthy growth of 28%, though the revenues grew only 2%. Further, the segment results of the cooling products business increased by 27%, despite a marginal decline in the segment revenues. The professional electronics and industrial systems business grew significantly by 32% during Q4FY09, with segment results registering growth of 41%.

Outlook

Ashok M Advani, Chairman and Managing Director says "Despite a challenging year, the Company performed reasonably well, thanks to our initiatives in value engineering coupled with tight control on operating costs and efficient working capital management. While the economic outlook for the next few quarters is uncertain, I am confident that the Company's lean cost structure, healthy margins, good cash flow and solid balance sheet will see us through this difficult period and improve our prospects for the future."

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