Blue Star Ltd. has reported revenue from operations of Rs 1235.91 crore for the quarter ended December 31, 2019, on a consolidated basis, compared to Rs 1098.97 crore during the same period in the previous year – a growth of 12.5 percent. The operating profit (PBIDTA excluding other income and finance income) for the quarter was Rs 57.03 crore compared to Rs 42.37 crore in 3QFY19 – a growth of 34.6 percent.
Net profit after tax for the quarter was Rs 19.70 crore compared to Rs 13.23 crore in 3QFY19. Other income (including finance income) was Rs 6.09 crore in 3QFY20 compared to Rs 10.37 crore in 3QFY19. Other income was higher in 3QFY19 on account of interest on income tax refunds.
Tax expense for 3QFY20 was Rs 11.97 crore, compared to Rs 0.99 crore in 3QFY19. Effective tax rate in 3QFY20 was 37.8 percent as against 7 percent in 3QFY19 due to reversal of Deferred Tax Asset created in FY19, arising from higher profitability in Blue Star Engineering and Electronics. Earnings per share for 3QFY20 (face value of Rs 2) was Rs 2.03 vis-à-vis Rs (0.10) in 3QFY19.
Consolidated segment performance for 3QFY20. Revenue of the Electro-mechanical Projects and Commercial Air Conditioning Systems Segment for the quarter grew by 15.8 percent to Rs 758.80 crore compared to Rs 655.47 crore in 3QFY19, while the segment results grew to Rs 39 crore in 3QFY20 from Rs 30.11 crore in 3QFY19 driven by the margin profile of jobs executed in the Electro-mechanical Projects Business and cost optimization measures in the Commercial Air Conditioning Systems Business. Unitary Products revenues increased 7.3 percent to Rs 420.23 crore in 3QFY20 from Rs 391.52 crore in 3QFY19 driven by a pick-up in demand in the latter half of the quarter. However, the segment results declined to Rs 7.65 crores compared to Rs 9.39 crore in 3QFY19 due to pressure on price realization in a competitive market and higher spends on advertising. The Professional Electronics and Industrial Systems Business registered a revenue growth of 9.4 percent in 3QFY20 to Rs 56.88 crore from Rs 51.98 crore in 3QFY19. Regulatory requirements on data localization and increased thrust on digital payment solutions created good short term opportunities for the Data Security Solutions Business and drove revenue growth in the segment. The segment results improved significantly due to certain high margin orders executed during the quarter.
Consolidated financial performance for the nine months ended December 31, 2019. For the nine months ended December 31, 2019, the company reported revenue from operations of Rs 4060.83 crore, compared to Rs 3639 crore over the same period in the previous year – a growth of 11.6 percent. Operating profit increased to Rs 245.46 crore from Rs 237.10 crore during the same period last year. Net profit after tax for the period was Rs 132.30 crore, compared to Rs 131.60 crore for the same period in the previous year.
Vice Chairman and Managing Director,
Blue Star Limited
“Though the order book is healthy, order inflow slowed down from the real estate and infrastructure sectors due to continued challenges on flow of credit to these sectors. Low penetration coupled with increasing demand from Tier-III, Tier-IV, and Tier-V towns will continue to support growth in the products business. We will continue to stay focused on driving revenue growth and profitability with a close watch on margins, cash flow, and capital employed.”