Blue Star Limited , a leading air conditioning and commercial refrigeration company, is anticipating stronger demand during the upcoming holiday season, despite facing challenges in the first quarter.

Q1 Performance

The company reported a consolidated revenue growth of 4.10% to Rs 2,982.25 crores, compared to Rs 2,865.37 crores in the same period last year. However, the quarter began on a softer note due to unseasonal rains across the country, resulting in a weak summer that adversely impacted the Room Air Conditioners business.

Segment-wise Performance

Electro-Mechanical Projects and Commercial Air Conditioning Systems

This segment saw robust growth, with revenue increasing by 35.90% to Rs 1,412.46 crores. The company witnessed strong order bookings, particularly from factories, data centers, and healthcare sectors.

Unitary Products

The Unitary Products segment, which includes Room Air Conditioners and Commercial Refrigeration, experienced a revenue decline of 13.30% to Rs 1,499.37 crores. This was primarily due to the early onset of monsoon and an overall mild summer, leading to subdued demand for room air conditioners.

Professional Electronics and Industrial Systems

This segment faced challenges, with revenue declining by 27.30% to Rs 70.42 crores.

Looking Ahead

Despite the challenges in Q1, Blue Star remains optimistic about the future. The company anticipates a stronger demand revival during the festive season, particularly for its Room Air Conditioners business.

Vir S. Advani, Chairman & Managing Director of Blue Star Limited, commented on the outlook: "We anticipate the demand to revive during the upcoming festive season. Further, our well-diversified portfolio of B2B products and solutions comprising Electro-Mechanical Projects, Commercial Air Conditioning, and Commercial Refrigeration should help us partly offset the shortfall during the rest of the financial year."

Strategic Focus

Blue Star is committed to its long-term vision for growth and innovation. The company plans to make strategic investments in manufacturing, R&D, and digitalization while ensuring sustainable value creation for stakeholders.

As the holiday season approaches, Blue Star is poised to capitalize on the expected increase in demand, leveraging its diverse product portfolio and strong market presence.

Financial Highlights

With a robust order book and strategic initiatives in place, Blue Star is well-positioned to navigate the challenges and capitalize on the anticipated demand uptick in the coming months.

Blue Star Limited , a leading air conditioning and commercial refrigeration company, reported a mixed set of financial results for the first quarter. The company's consolidated revenue grew by 4.1% year-over-year, despite facing headwinds in its room air conditioner business due to unseasonal rains.

Revenue Growth and Profitability

Blue Star's consolidated revenue from operations increased to ₹2,982.25 crore, up from ₹2,865.37 crore in the same period last year. However, the company experienced a decline in profitability:

• Operating Profit (EBITDA) decreased to ₹199.99 crore (6.7% of revenue) from ₹237.83 crore (8.3% of revenue).
• Profit Before Tax (PBT) fell by 27.8% to ₹163.23 crore, compared to ₹226.02 crore.
• Net Profit for the quarter stood at ₹120.82 crore, down from ₹168.76 crore in the previous year.

Segment Performance

1. Electro-Mechanical Projects and Commercial Air Conditioning Systems

• Revenue grew by 35.9% to ₹1,412.46 crore
• Segment result was ₹111.62 crore (7.9% of revenue)
• Strong order bookings from factories, data centers, and healthcare sectors

2. Unitary Products (Room ACs and Commercial Refrigeration)

• Revenue declined by 13.3% to ₹1,499.37 crore
• Segment result was ₹87.47 crore (5.8% of revenue)
• Room AC business impacted by early monsoon and mild summer
• Commercial Refrigeration business showed strong growth

3. Professional Electronics and Industrial Systems

• Revenue declined by 27.3% to ₹70.42 crore
• Segment result was ₹7.62 crore (10.8% of revenue)
• Challenges in Med Tech and Data Security businesses

Financial Position

• The company maintained a net cash position of ₹370.92 crore.
• Carried Forward Order Book grew by 12.5% to ₹6,843.04 crore.

Management Commentary

Vir S. Advani, Chairman & Managing Director of Blue Star Limited, commented on the results: "The first quarter was impacted due to unseasonal rains during the summer season, resulting in a decline of Room Air Conditioners sales. We anticipate the demand to revive during the upcoming festive season. Further, our well-diversified portfolio of B2B products and solutions comprising, Electro-Mechanical Projects, Commercial Air Conditioning and Commercial Refrigeration, should help us partly offset the shortfall during the rest of the financial year."

Outlook

Despite the challenges in the Room AC segment, Blue Star remains optimistic about its prospects. The company expects a stronger demand revival during the festive season and continues to focus on strategic investments in manufacturing, R&D, and digitalization to drive long-term growth and innovation.

Blue Star's diversified portfolio and strong performance in B2B segments have helped the company navigate through the challenging market conditions. As it looks ahead, the company is well-positioned to capitalize on the expected recovery in demand and its robust order book.