Blue Star's Q1 profit falls over 15 pc to Rs 102 crore
Mumbai, Aug 6
Blue Star Limited on Thursday reported a 15.3 per cent year-on-year decline in net profit for the June quarter, as margin pressure and lower operating profitability offset healthy growth in revenue.
The cooling products and refrigeration major posted profit of Rs 102.5 crore for the quarter despite reporting a one-time gain.
In the corresponding quarter of the previous financial year (Q1 FY26), the firm reported a profit of Rs 121 crore, according to its stock exchange filing.
The air-conditioning and commercial refrigeration company registered strong revenue growth during the quarter, with revenue rising 13.3 per cent year-on-year to Rs 3,378 crore from Rs 2,982 crore.
However, operating performance weakened during the period. Earnings before interest, taxes, depreciation and amortisation (EBITDA) declined 12.3 per cent to Rs 175 crore from Rs 200 crore a year earlier.
EBITDA margin contracted to 5.2 per cent from 6.7 per cent in the year-ago quarter, as per its regulatory filing.
The company said the quarter's earnings included a one-time gain of Rs 9.2 crore, as per its filing.
Meanwhile, tax expenses declined to Rs 32.1 crore from Rs 42.4 crore in the corresponding quarter last financial year.
Following the announcements, the shares of the company were trading at Rs 1,565.40, down by 5.98 per cent or Rs 99.60.
Founded in 1943, Blue Star is among India's leading air-conditioning and commercial refrigeration companies.
The company manufactures and markets a broad range of cooling solutions, including room air conditioners, commercial air-conditioning systems, refrigeration products and cold-chain equipment.
Apart from its product business, Blue Star also undertakes mechanical, electrical and plumbing (MEP) as well as electro-mechanical projects across commercial, industrial and infrastructure sectors.
With manufacturing facilities located across India and operations spanning multiple international markets, the company caters to residential, commercial and institutional customers through a diversified portfolio of cooling and engineering solutions.
— IANS
Reader Comments
The stock fell 6% - that's a big correction. But honestly, this is a good buying opportunity for long-term investors. Blue Star has strong fundamentals and the cold-chain segment has huge growth potential in India. The one-time gain of Rs 9.2 crore shows they're making smart moves. Short-term pain, long-term gain! 📈
I wonder how much of this decline is due to increased raw material costs. Copper and aluminium prices have been high. Plus, with the global supply chain issues, component costs must be hurting. The management needs to explain their strategy for improving margins. Otherwise, small investors like us are left guessing.
Revenue up 13% but profit down 15% - something is fundamentally wrong with their cost structure. Either they're spending too much on marketing or their operational efficiency has dropped. As someone who tracks this sector, even Voltas and LG are facing margin pressure but not this badly. Blue Star needs to go back to the drawing board.
Actually aap logo ko ek baat samajhni chahiye - this is just one quarter. Blue Star has been around since 1943, they know how to weather storms. The government's PLI scheme for air conditioners should help them in the long run. Patience is key in stock market. I'm holding my shares. 👍
Just started researching Indian cooling companies as part of my emerging markets portfolio. Interesting that revenue grew so strongly despite the profit dip. The MEP and electro-mechanical projects segment could be a differentiator. Need
We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.