Financial Performance

Central airconditioning and commercial refrigeration major Blue Star has reported a Net Profit of Rs. 31.04 crores for the year ended March 31, 2003 from a Total Income of Rs. 601.06 crores. While Total Income grew by 16%, Profit Before Tax grew by 47%, in comparison with the corresponding figures for the previous year. The provision for taxation was higher, consequent to the reduction in Income Tax exemption on the profits of the manufacturing plant at Dadra. The Company managed its capital well, and achieved 60% reduction in Interest.

Earnings per share increased to Rs.16.79 from Rs.13.52.

Dividend

The Directors have recommended a normal dividend of Rs. 6.50 plus a special Diamond Jubilee dividend of Rs. 2.50, totaling to Rs.9.00 per equity share as against Rs. 6.50 paid in the previous year. Blue Star has paid attractive dividends for the past 33 years, ever since it went public in 1969. Shares of Blue Star are one of the high dividend yielding stocks, and have been attractive for long-term investors looking for consistent returns.

60 Years Of Leadership

Blue Star is the market leader in central airconditioning and commercial refrigeration. It also markets a wide range of products, systems and services in the field of professional electronics. Blue Star will complete 60 years in September 2003, and the company is celebrating FY 2003-04 as its Diamond Jubilee year. During its 60 years of existence, the company has reinvented itself again and again in line with the market environment, and has emerged as the company of choice for its customers, employees and business partners. With the objective to achieve aggressive growth, the Company is implementing several strategic initiatives in the areas of product innovations, information technology, channel development and brand building.

Ashok M Advani, Chairman & Chief Executive Officer adds, "Our continued focus on our core businesses, and efficient use of resources resulted in improved sales and profitability. Shareholders will be happy to note that the return on capital employed (ROCE) improved to 33% from 27%, while the return on shareholder's funds (RONW) increased to 27% from 25%. As I have stated in the past, Blue Star's value proposition to investors is to earn 'real' profits to generate positive cash flows, comfortably fund the capital required for growth, pay a generous dividend and still leave a substantial cash surplus. I am confident that Blue Star will continue to grow as the respected leader of the airconditioning and refrigeration industry in India."

For additional information, please contact: B Thiagarajan, Vice President, Corporate Affairs and Communications, Blue Star Limited, Kasturi Buildings, Mohan T Advani Chowk, J Tata Road, Mumbai - 400 020, email: btn@bluestarindia.com, Telephone: 56654000