Latest news with #BlueStarLtd
Mint
14 hours ago
- Business
- Mint
Blue Star faces the heat in Q1 from a milder summer season
Blue Star Ltd's shares are down as much as 35% from their 52-week high of ₹2,417 in January as a weak summer season is expected to hurt room air-conditioner (RAC) demand, and in turn, sales. Despite the significant underperformance vis-à-vis the Nifty 500 index so far in 2025, the stock's sharp rally of about 125% in 2024 means valuations don't bring a lot of comfort. Blue Star's shares still trade at almost 47 times FY26 estimated earnings, as per Bloomberg data, which is not particularly cheap. The company ended FY25 with a 32% consolidated Ebitda growth to ₹876 crore, and a 45-basis points (bps) expansion in margin to 7.3%. However, FY26 has begun on a softer note, thanks to a milder summer season and the early arrival of the monsoon. This means the seasonally strong June quarter (Q1 of FY26) now appears less exciting than initial expectations. Also Read | As temperatures soar, consumers rush for air conditioners, coolers to beat the heat Blue Star executives told analysts recently that they expect a 25-30% year-on-year decline in volume during Q1 for the RAC industry (and Blue Star) on the high base of Q1FY25's growth. Plus, elevated channel inventory remains a concern. 'But management is still optimistic on FY26 full year RAC growth of 10-15% banking on stronger festive season (second summer), pre-buying in Q3 (energy label change w.e.f. January 2026) and healthy underlying structural demand for AC," IIFL Securities said in a report. On the other hand, the commercial refrigeration sub-segment could perform relatively better due to a favourable base and the limited impact of unseasonal rains. With overall unitary product segment revenue poised to take a hit in Q1, investors should watch out for the impact on the Ebit (earnings before interest and tax) margin even as the management told analysts that it plans to increase its focus on controlling variable costs. Total revenue Revenue from Blue Star's unitary products segment, which includes RACs and commercial refrigeration, was up 22% to ₹5,621 crore in FY25, contributing 47% of the company's total revenue. The segment's FY25 Ebit margin rose 54 bps to 8.4%. Blue Star's FY25 RAC market share was close to 14% and it now aims to reach 15%. Half of the company's FY25 revenue came from electro-mechanical projects and commercial air-conditioning systems, which grew 27%. The electro-mechanical projects business delivered a strong performance in FY25, aided by robust demand across factories and data centres, while demand was muted in the commercial real estate and infrastructure sectors. Also Read | Hot summer forecast to boost consumer durables, beverage sales in India The remaining small portion of Blue Star's revenue comes from professional electronics and industrial systems. Thus, Blue Star's total FY25 revenue was up 23.5% to ₹11,968 crore. It should be noted that rival Voltas Ltd's shares, too, have underperformed in 2025, declining by about 30%. In recent months, FY26 earnings estimates have largely been cut for both companies, but analysts are generally not losing sleep over this. Emkay Global Financial Services' 15-year analysis suggests three similar periods of weak summers (2012-13, 2015, and 2018), where unitary cooling products (UCP) revenue growth was soft, while stocks fell about 30-40%. Also Read | Voltas rides the summer wave. But is the stock still a cool bet? 'Notably, each weak summer was followed by a sharp rebound, with UCP revenue rising about 15-20% amid structural tailwinds like premiumization, low penetration, and improving affordability driving stock rallies of about 40-160% over the next 12-18 months," Emkay's analysts said in a report on 28 May. Against this backdrop, from a near-term perspective, investors are likely to wait for meaningful clues on demand conditions from the Q1 results and management commentaries before getting enthused about the anticipated rebound later on.
Business Standard
21-05-2025
- Business
- Business Standard
Whirlpool of India Ltd Surges 6.93%
Whirlpool of India Ltd has added 26.62% over last one month compared to 2.29% gain in BSE Consumer Durables index and 2.42% rise in the SENSEX Whirlpool of India Ltd gained 6.93% today to trade at Rs 1385.3. The BSE Consumer Durables index is up 0.36% to quote at 59235.23. The index is up 2.29 % over last one month. Among the other constituents of the index, Blue Star Ltd increased 1.75% and Havells India Ltd added 0.52% on the day. The BSE Consumer Durables index went up 7.08 % over last one year compared to the 9.97% surge in benchmark SENSEX. Whirlpool of India Ltd has added 26.62% over last one month compared to 2.29% gain in BSE Consumer Durables index and 2.42% rise in the SENSEX. On the BSE, 15222 shares were traded in the counter so far compared with average daily volumes of 27926 shares in the past one month. The stock hit a record high of Rs 2450 on 22 Oct 2024. The stock hit a 52-week low of Rs 899 on 03 Mar 2025.
Time of India
08-05-2025
- Business
- Time of India
Blue Star Q4 profit up 21.5 pc to Rs 194 cr; revenue up 20.7 pc to 4,018.96 cr
New Delhi: Air condition and commercial refrigeration system maker Blue Star Ltd on Wednesday reported an increase of 21.47 per cent in consolidated net profit at Rs 194 crore in the March quarter, led by its room air-conditioner and project business. The company had posted a net profit of Rs 159.71 crore in the January-March quarter a year ago, according to a regulatory filing from Blue Star Ltd. Its revenue from operations grew 20.77 per cent to Rs 4,018.96 crore in the March quarter. It was Rs 3,327.77 crore in the year-ago period. Total expenses of the homegrown cooling products maker increased 21.34 per cent to Rs 3,793.73 crore in the March quarter. Blue Star's revenue from the electro-mechanical projects and commercial air conditioning systems segment stood at Rs 1,968.17 crore in the January-March quarter, up 30.6 per cent. Its revenue from unitary products, under which its room AC business comes, was Rs 1,960.23 crore in the March quarter. However, its revenue from the professional electronics and industrial systems business was down 19.18 per cent to Rs 90.56 crore. The company's total income increased to Rs 4,042.95 crore in the fourth quarter from Rs 3,340.16 crore in the same period a year ago. For the entire FY25, the net profit increased to Rs 591.28 crore from Rs 414.31 crore in FY24. Blue Star's total consolidated income was up 23.73 per cent to Rs 12,042.65 crore for the financial year, which ended on March 31, 2025. The company "sustained its growth momentum in FY25, driven by strong demand across key businesses. Notably, the Room AC business achieved exceptional growth during the year due to demand fuelled by an intense summer and stocking by channel partners to tackle potential supply chain uncertainties," Blue Star said in its earnings statement. Meanwhile, in a separate filing, Blue Star informed its board in a meeting held on Wednesday also recommended a final dividend of Rs 9 per equity share of Rs 2 each for the financial year ended March 31, 2025. It further approved the re-appointment of Vir S Advani as the company's Chairman & Managing Director for a further period of five years commencing from April 1, 2026. The approval is based on the recommendations of the Nomination and Remuneration Committee and is subject to the approval of members of the company. Shares of Blue Star Ltd on Wednesday settled at Rs 1,679.95 apiece on the BSE, down 0.65 per cent from the previous close.>
Time of India
07-05-2025
- Business
- Time of India
Blue Star Q4 Results: Profit jumps 21% to Rs 194 crore; revenue up 20%
Live Events (You can now subscribe to our (You can now subscribe to our ETMarkets WhatsApp channel New Delhi, Air condition and commercial refrigeration system maker Blue Star Ltd on Wednesday reported an increase of 21.47 per cent in consolidated net profit at Rs 194 crore in the March quarter, led by its room air-conditioner and project business. The company had posted a net profit of Rs 159.71 crore in the January-March quarter a year ago, according to a regulatory filing from Blue Star revenue from operations grew 20.77 per cent to Rs 4,018.96 crore in the March quarter. It was Rs 3,327.77 crore in the year-ago expenses of the homegrown cooling products maker increased 21.34 per cent to Rs 3,793.73 crore in the March Star's revenue from the electro-mechanical projects and commercial air conditioning systems segment stood at Rs 1,968.17 crore in the January-March quarter, up 30.6 per revenue from unitary products, under which its room AC business comes, was Rs 1,960.23 crore in the March its revenue from the professional electronics and industrial systems business was down 19.18 per cent to Rs 90.56 company's total income increased to Rs 4,042.95 crore in the fourth quarter from Rs 3,340.16 crore in the same period a year the entire FY25, the net profit increased to Rs 591.28 crore from Rs 414.31 crore in Star's total consolidated income was up 23.73 per cent to Rs 12,042.65 crore for the financial year, which ended on March 31, company "sustained its growth momentum in FY25, driven by strong demand across key businesses. Notably, the Room AC business achieved exceptional growth during the year due to demand fuelled by an intense summer and stocking by channel partners to tackle potential supply chain uncertainties," Blue Star said in its earnings in a separate filing, Blue Star informed its board in a meeting held on Wednesday also recommended a final dividend of Rs 9 per equity share of Rs 2 each for the financial year ended March 31, further approved the re-appointment of Vir S Advani as the company's Chairman & Managing Director for a further period of five years commencing from April 1, approval is based on the recommendations of the Nomination and Remuneration Committee and is subject to the approval of members of the of Blue Star Ltd on Wednesday settled at Rs 1,679.95 apiece on the BSE, down 0.65 per cent from the previous close.
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Business Standard
07-05-2025
- Business
- Business Standard
Blue Star Q4 results: Net profit rises 21% to ₹194 cr on higher revenue
The company's total income increased to Rs 4,042.95 crore in the fourth quarter from Rs 3,340.16 crore in the same period a year ago Press Trust of India New Delhi Homegrown cooling products maker Blue Star Ltd on Wednesday reported a 21 per cent rise in consolidated net profit to Rs 194 crore in the March quarter, driven by higher revenues. It had posted a net profit of Rs 159.71 crore in the January-March period of the preceding 2023-24 financial year, the company said in a regulatory filing. The company's total income increased to Rs 4,042.95 crore in the fourth quarter from Rs 3,340.16 crore in the same period a year ago. Expenses also rose to Rs 3,793.73 crore during the quarter against Rs 3,126.38 crore in the March quarter of FY24. For the entire FY25, the net profit increased to Rs 591.28 crore from Rs 414.31 crore in FY24. The board also recommended a final dividend of Rs 9 per equity share of Rs 2 each for the financial year ended March 31, 2025. It further approved the re-appointment of Vir S Advani as the company's Chairman & Managing Director for a further period of five years commencing from April 1, 2026. The approval is based on the recommendations of the Nomination and Remuneration Committee and is subject to the approval of members of the company. Advani, after a two-year working stint in private equity in New York, joined Blue Star Infotech Ltd in 2000 and later founded Blue Star Design and Engineering Ltd in 2003, serving as its Chief Executive Officer. In 2007, he moved to Blue Star as Vice President of Corporate Affairs and became Executive Director in 2010. In April 2016, he was appointed as the Managing Director of the Company, and in April 2019, he was elevated to Vice Chairman and redesignated as Vice Chairman & Managing Director. In April 2024, he assumed the position of Chairman & Managing Director at Blue Star. (Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
