Haier

Blue Star Is Counting On Summer To Beat FY19 Market Growth

Blue Star Ltd. expects its volume growth for the current fiscal to beat that of the market if the summer season turns out to be good for the air conditioner maker, according to its Executive Director B Thiagarajan.

The air conditioner maker aims to close the ongoing financial year with a 15 percent volume growth, Thiagarajan said, adding that he expects the overall market to grow at 10 percent.

“Between March and June, we see a 25 percent growth if the summer turns out to be good,” he told Bloomberg Quint in an interview. “The weather forecast indicates a reasonably good summer season.”

The company’s margin had contracted by 60 basis points to 3.9 percent in the December-ended quarter owing to a high inventory base. “Three-quarters of poor margin cannot be made up (for) in one quarter or month,” he said, adding that he expects the margin to “bounce back” in the fourth quarter. “Moving forward to the first quarter (of next fiscal), it should be normal, as we have been delivering in the past.”―Bloomberg Quint

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