Blue Star Q1 net profit up two fold to Rs 168.76 cr, revenue up 28.7% to Rs 2,865.37 cr

New Delhi: Air condition and commercial refrigeration system maker Blue Star Ltd has reported a two-fold increase in consolidated net profit at Rs 168.76 crore in the first quarter ended June 2024, helped by a robust demand of cooling products and cost management efforts.

The company had posted a net profit of Rs 83.37 crore in the April-June quarter of the previous fiscal, Blue Star said in a regulatory filing.

Its revenue from operations was up 28.72 per cent to Rs 2,865.37 crore in the June quarter. It was at Rs 2,222.60 crore in the year-ago period.

Blue Star's total expenses increased 25.51 per cent to Rs 2,663.20 crore in the June quarter.

Its total income in the June quarter was at Rs 2,889.14 crore, up 29.24 per cent.

Blue Star delivered an "exceptional business performance" in the first quarter of FY25," according to an earnings statement by the company on Tuesday.

"During the quarter, the company's revenue and profit growth were driven by robust demand for its diverse product portfolio across various segments, complemented by its focused cost management efforts. The quarter also ended with a healthy carried forward order book," it said.

Blue Star's revenue from the electro-mechanical projects and commercial air conditioning systems segment was up 9.46 per cent to Rs 1,038.99 crore in the June quarter of FY25.

"Despite limited traction in the commercial building sector, the company experienced robust bookings from segments such as factories and data centres, primarily driven by ongoing efforts of the Government to encourage manufacturing investments through PLI initiatives. There was also an uptick in enquiries from the healthcare and retail sectors," it said.

The Commercial Air Conditioning business witnessed enhanced demand from education, manufacturing and retail segments, driving revenue growth during the quarter.

Its revenue from unitary products, under which its room AC business comes, registered a 44.31 per cent rise to Rs 1,729.52 crore in the December quarter.

"With most parts of the country witnessing extremely high temperatures and an overall harsh summer, the increase in demand led to an unprecedented growth in the room air conditioners business," it said.

During the quarter, demand exceeded inventory plans of the business and while the company met most of the excess requirements through an increase in production at its plants, it still lost some opportunity to cater to the entire demand that the season offered, Blue Star said.

Its revenue from professional electronics and industrial systems business revenue grew by 23.5 per cent to Rs 96.86 crore.

Meanwhile, in a separate filing, Blue Star informed that its board in a meeting held on Tuesday appointed P V Rao as a Working Director designated as Executive Director- Projects, Solutions & International.

Over the outlook, Chairman & Managing Director Vir S Advani said: "We expect sustained growth driven by good demand, from the introduction of new products across all product categories and a strong carried forward order book." Shares of Blue Star Ltd on Wednesday were trading at Rs 1,602.50 on BSE, up 1.07 per cent from the previous close.