Financial Performance For Q1FY14

• Airconditioning and commercial refrigeration major, Blue Star Limited reported Total Operating Income of Rs 770.82 crores for the quarter ended June 30, 2013, as compared to Rs 731.42 crores in Q1FY13, representing an increase of 5%.
• Operating Profit (PBIDT excluding Other Non Operating Income) for the quarter increased 15% to Rs 38.42 crores from Rs 33.53 crores in Q1FY13.
• During the quarter, Other Income declined 38% to Rs 4.38 crores as compared to Rs 7.01 crores during the same period last year, due to lower foreign exchange gains.
• Financial Expenses for the quarter declined marginally by 7% to Rs 11.70 crores from Rs 12.53 crores in Q1FY13.
• Consequently, Net Profit grew 11% from Rs 20.54 crores in Q1FY13 to Rs 22.77 crores during the quarter.
• Earnings per share for the quarter (Face value of Rs 2.00) stood at Rs 2.53 vis-à-vis Rs 2.28 in the corresponding quarter of the previous year.
• The Electro Mechanical Projects and Packaged Airconditioning Systems business, accounting for 44% of the total revenues in the quarter, declined 7% while segment results registered a significant increase of 63% to Rs 20.16 crores. The increase in profitability was mainly due to better gross margin and enhanced quality of new orders booked.
• Cooling Products revenue registered a growth of 19% in the quarter driven by significant increase in sales of room airconditioners. Segment results grew 13% to Rs 42.31 crores over the same period.
• The Professional Electronics and Industrial Systems business revenues increased by a modest 4%, while segment results declined 53% to Rs 3.37 crores, owing to the unfavourable business climate.
• Carry Forward Order Book as on June 30, 2013 declined 22% to Rs 1438 crores compared to Rs 1848 crores as at June 30, 2012, mainly due to a concerted effort to improve the quality of new orders won.

Outlook

The Company returned to profitability in FY13 and this momentum continued in the first quarter of FY14 as well. The Company’s strategy of focusing on profitable market segments, entering new markets and geographies through wider distribution and effective cost control initiatives contributed immensely in enhancing margins. While, the electro mechanical projects business continues to be under pressure due to the challenging business environment, the cooling products business has been performing well, driven by the room airconditioners business. The sharp depreciation of the Rupee coupled with the difficult economic outlook are concern areas. The Company intends to continue to focus on the initiatives taken with regards to cost control and prudent financial management in order to sustain this performance for the rest of the year.

For additional information, please contact: B Thiagarajan, Executive Director & President, AC&R Products Business, Blue Star Limited, Bandbox House, 254D, Dr Annie Besant Road, Worli, Mumbai – 400 030 email: btn@bluestarindia.com Telephone: 09821078098.