Blue star releases its financial report for Q2FY22

Blue Star’s quarter commenced on a strong note with an extended summer in the northern parts of the country. The company witnessed healthy demand and robust volume growth for room air conditioners and refrigeration products in Q2FY22 compared to Q2FY21. This was on account of the ebbing of the second wave of the pandemic and the consequent easing of restrictions combined with improvement in consumer sentiment. Commercial, manufacturing and other Institutional segments also revived. Most importantly, collections were healthy resulting in substantial reduction in borrowings. Escalation in commodity prices, logistics costs and depreciation of the rupee exerted margin pressure, which was partially offset by price increases, cost reduction initiatives and improvement in operational efficiency.

The company’s revenue from operations increased by 37.4 per cent to Rs 1239.74 crores for the quarter ended September 30, 2021, on a consolidated basis, compared to rupees 902.12 crore during the same period in the previous year. The Net Profit for the quarter stood at rupees 31.45 crore compared to Rs 15.40 crore in Q2FY21.

Revenue of the electro-mechanical projects and commercial air conditioning systems grew by 33.8 per cent to Rs 723.40 crore in Q2FY22 compared to Rs 540.83 crore in Q2FY21. The segment result for Q2FY22 was Rs 46.54 crores compared to Rs 34.41 crore in Q2FY21. Overall pace of execution of projects and order finalisations improved compared to the previous quarter.

For the half-year ended September 30, 2021, the company reported revenue from operations of Rs 2291.78 crore compared to Rs 1528.14 crores over the same period in the previous year, a growth of 50.0 per cent. Operating profit (PBIDTA excluding other income and finance income) was rupees 112.93 crore compared to Rs 56.44 crore during the same period last year. Net profit for the half-year was Rs 44.16 crore compared to Net Loss of Rs 4.20 crore in H1FY21.

“With the revenue reaching pre-COVID level in Q2FY22, we expect the growth momentum to continue through Q3 and Q4 leading up to the next summer season. The pricing corrections will continue, depending on movement in input costs. At the same time, product cost rationalization through value engineering and alternate designs, as well as operating cost reduction will be undertaken to counter the margin pressure,” said Vir S Advani, Vice Chairman and Managing Director, Blue Star Limited