Financial Performance For Q1FY13

• Central airconditioning and commercial refrigeration major Blue Star Limited reported Total Operating Income of Rs 731.42 crores for the quarter ended June 30, 2012, as compared to Rs 704.03 crores in Q1FY12, representing an increase of 4%.
• Operating Profit (PBIDT excluding Other Income) for the quarter increased 22% to Rs 33.53 crores from Rs 27.53 crores in Q1FY12.
• During the quarter, Other Income grew to Rs 7.01 crores from Rs 0.73 crores during the same period last year. This was mainly on account of income tax refunds and foreign exchange gains.
• Financial Expenses for the quarter increased to Rs 12.53 crores from Rs 8.17 crores in Q1FY12, due to higher interest costs and hedging/foreign exchange losses.
• Provision for taxation for the quarter was nil compared to Rs 3.17 crores during the same period last year. Although the Company is required to make a provision for MAT, due to the set-off of the carried forward business loss of the previous year, there is no taxable income for the year and hence no provision was required for tax.
• Consequently, Net Profit grew 110% from Rs 9.79 crores in Q1FY12 to Rs 20.54 crores during the quarter.
• Earnings per share for the quarter (Face value of Rs 2.00) stood at Rs 2.28 vis-à-vis Rs 1.09 in the corresponding quarter of the previous year.
• The Electro Mechanical Projects and Packaged Airconditioning Systems business, accounting for 50% of the total revenues in the quarter, increased 7% while segment results increased to Rs 12.37 crores as compared to a loss of Rs 8.87 crores during Q1FY12, mainly due to better gross margin.
• Cooling Products revenue registered a marginal increase of 2% in the quarter, while segment results declined by 15% to Rs 37.55 crores. A relatively mild summer across the country in April and May, coupled with cost pressures due to the appreciation of the dollar, resulted in the decline.
• The Professional Electronics and Industrial Systems business revenues reduced by 8%, while segment results declined 10% to Rs 7.18 crores, owing to the unfavourable business climate.
• Carry Forward Order Book as on June 30, 2012 reduced to Rs 1848 crores compared to Rs 2019 crores as at June 30, 2011, due to slower new order bookings as well as a concerted effort to improve the quality of new orders won.

Outlook

The corrective steps taken by the Company in the previous year including price increases, value engineering and cost control have begun to show results with the Company showing significant profit improvement in Q1. The Company hopes to sustain the turnaround for the rest of the year in spite of the continuing economic slowdown, high inflation and weak rupee.

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: 09821078098.