Financial Performance For The Quarter Ended September 30, 2010 (Q2FY11)

• Central airconditioning and commercial refrigeration major Blue Star Limited reported Total Operating Income of Rs. 694.75 crore for the quarter ended September 30, 2010, a growth of 25% over the same period last year.
• Operating Profit (PBIDT excluding Other Income) for the quarter increased by 2% to Rs. 67.22 crore.
• Net Profit was lower by 22% at Rs. 38.63 crore compared to Rs. 49.45 crore in Q2FY10 mainly because of lower gross margin, and higher interest costs and taxes.
• Earnings per share for the quarter (Face value of Rs. 2.00) stood at Rs. 4.29 vis-à-vis Rs. 5.50 in the corresponding quarter of the previous year.
• The Electro Mechanical Projects and Packaged Airconditioning business accounting for 69% of the total revenues in the quarter, grew 15% though segment results declined by 5%. Cooling Products revenue registered a healthy increase of 29% in the quarter, driven mainly by higher room airconditioner and deep freezer sales. Segment results, increased by 2%. The Professional Electronics and Industrial Systems business revenues grew significantly by 100%, while segment results registered a substantial increase of 63%.
• Carry Forward Order Book as on September 30, 2010 increased to Rs. 1998 crore compared to Rs. 1815 crore as at September 30, 2009, representing a growth of 10%.

Financial Performance For The Half-Year Ended September 30, 2010 (H1FY11)

• For the half-year ended September 30, 2010, the Company reported Total Operating Income of Rs. 1359.58 crore, as compared to Rs. 1085.97 crore over the same period in the previous year, representing growth of 25%.
• Operating Profit (PBIDT excluding Other Income) was virtually flat at Rs. 128.10 crore versus Rs. 129.44 crore in the same period last year.
• Net Profit at Rs. 75.78 crore was lower by 16% compared to Rs. 90.61 crore in H1FY10.

Outlook

Ashok M. Advani, Executive Chairman, says, “The trend of positive revenue growth registered in the first quarter was sustained in this quarter as well. However, margins and profits continue to be adversely impacted. The Management is taking steps to mitigate the rise in input material costs. Given a reasonable carry-forward order book, I am hopeful that better margins and continuing sales growth will result in better profitability in the second half of the year.”

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: 66544000.