Financial Performance

Blue Star Limited India's leading Central Air conditioning company has reported a net profit of Rs.23.24 crores for the year ended 31.3.2000 as against Rs.16.27 crores in the previous year registering a jump of 43%. Consequent to the planned phasing out of the unrelated Industrial Projects business, net sales/income from operations grew marginally to Rs.479.30 crores as against Rs.474.82 crores in 1998-99. The impressive growth in net profit has been achieved through a multi pronged strategy focussing on material cost reduction through R & D, value engineering and efficient procurement; addition of high value activities to the business mix and minimization of low margin businesses. Earnings per share have increased to Rs.8.58 compared to Rs.6.01 in the previous year.

Higher Dividend

The Directors have declared a final dividend of Rs.0.50 per equity share which together with the interim dividend of Rs.4.50 per share paid on 15.5.2000 makes a total dividend of Rs.5/- per share. The dividend is payable on the reduced share capital pursuant to the spin off of the international Software Division to Blue Star Infotech Limited.

Air conditioning And Commercial Refrigeration Business Grows

With the revival of overall business activity, Blue Star has acquired several prestigious orders for central air conditioning projects and continues to be the leader in this segment. The Company recorded a growth of 30% in the room and split air conditioners segments during the year, despite the market growth of only 8%. Sales of water coolers grew by 47% in the last financial year, making Blue Star the leader in this product category too. The commercial refrigeration business which includes deep freezers and refrigerated cold rooms has also increased by 25%. With its wide range of products and ongoing R & D activity, Blue Star expects continued growth in all the above segments.

Blue Star Infotech Limited

The order of the Bombay High Court approving the scheme of arrangement between Blue Star Limited and Blue Star Infotech Limited has already been filed with the Registrar of Companies, and necessary formalities are being completed in order to get Blue Star Infotech Limited's shares listed on the stock exchange by June 30, 2000.

The net sales/income from operations and profit before tax of Blue Star for the accounting year ended 31.3.2000 include Rs.3713.92 Lakhs and Rs.810.18 Lakhs respectively of the International Software Division (ISD). Pursuant to the scheme of arrangement as stated above, the said profit before tax amounting to Rs.810.18 Lakhs together with profit before tax for the period 1.10.98 to 31.3.99 of Rs.399.62 Lakhs of ISD have been transferred to Blue Star Infotech Limited.