Blue Star Q2 profit up 36% to Rs 96 crore

New Delhi: Air conditioning and commercial refrigeration systems maker Blue Star Ltd on Wednesday reported 35.73 per cent rise in consolidated net profit at Rs 96.06 crore for the second quarter ended September 2024 led by its project business.

The company had logged a net profit of Rs 70.77 crore in July-September FY24, according to a regulatory filing from Blue Star Ltd.

Revenue from operations was up 20.39 per cent to Rs 2,275.96 crore in the September quarter as against Rs 1,890.40 crore in the year-ago period.

“During the quarter, the company maintained the growth momentum established in the first quarter. A strong performance across all major segments, supported by a robust order book, reflects increasing demand for its diverse product portfolio,” said an earnings statement from Blue Star.

Total expenses increased 19.61 per cent to Rs 2,163.08 crore in the quarter. Total income, which includes other income, was at Rs 2,294.47 crore, up 20.54 per cent year-on-year.

Blue Star's revenue from the electro-mechanical projects and commercial air conditioning systems segment was up 32.60 per cent to Rs 1,428.42 crore in September quarter.

“Scale economies, better profile mix as well as cost reengineering contributed to a 220 basis points improvement in segment margins,” it said.

In the Electro-Mechanical Projects business, manufacturing and data centre segments continued to drive growth. While the execution of infrastructure projects is gaining momentum, enhanced order finalisations are being witnessed in the commercial real estate sector, it added.

Revenue from unitary products, which also include room AC business, registered 5.14 per cent growth to Rs 767 crore in the quarter.

“Though this is typically a lean quarter for this segment, the demand for room air conditioners remained strong and the company recorded healthy growth and maintained its market share through a comprehensive product portfolio and enhanced distribution network. Dealers began stocking up in anticipation of the festival season,” it said.

However, the segment also have challenges in the Commercial Refrigeration business arising from regulatory changes related to BIS and Quality Control Order (QCO). It also faced delays in ramping up production of the new range of glass top deep freezers , which moderated the overall revenue growth of this segment, it said.

However, revenue from professional electronics and industrial systems business was down marginally to Rs 80.54 crore.

Meanwhile, in a separate filing, Blue Star said its board in a meeting held on Wednesday 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 overall prospects for all businesses continue to look promising as room AC and Commercial Air conditioning businesses are doing well, both in terms of revenue and profit.

“We expect FY25 to be another milestone year for the company and remain optimistic for the balance half of the year,” he said.

Shares of Blue Star Ltd on Wednesday settled at Rs 1,878 apiece on BSE, up 1.18 per cent from the previous close.