Haier

Blue Star’s consolidated Q1FY19 net profit grows 20 percent

Effective April 1, 2018, Blue Star Limited has adopted Ind AS 115 and accordingly, has realigned its revenue recognition policies appropriately. The accounting changes have been applied with retrospective effect to each of the prior reporting periods presented.

Consolidated financial performance for Q1FY19. The company has reported revenue from operations of Rs. 1507.83 crore for the quarter ended June 30, 2018 on a consolidated basis, compared to Rs. 1519.94 crore during the same period in the previous year. Prior to GST going live on July 1, 2017, the revenue reported for previous periods included excise duty. On a comparable basis, the company’s revenue from operations for Q1FY18 was Rs. 1405.05 crore, a growth of 7 percent. The operating profit (PBIDTA excluding other income and finance income) for the quarter was Rs. 136.66 crore compared to Rs. 110.60 crore in Q1FY18, a growth of 24 percent. Net profit for the quarter increased by 20 percent to Rs. 91.58 crore compared to Rs. 76.15 crore in Q1FY18. Other income (including finance income) for Q1FY19 was Rs. 3.34 crore compared to Rs. 8.62 crore in Q1FY18. Other income in Q1FY18 was higher on account of net forex gain and interest on income tax refunds. There was an exceptional income of Rs. 15.18 crore during the quarter on account of profit on sale of property, plant, and equipment. Earnings per share for Q1FY19 (face value of Rs. 2) rose to Rs. 9.53 vis-à-vis Rs. 7.96 in Q1FY18. The carried forward order book as on June 30, 2018 grew by 8 percent to Rs. 2121.63 crore.

Consolidated segment performance for Q1FY19. Unitary products revenues declined by 4 percent to Rs. 830.76 crore from Rs. 861.33 crore primarily due to soft summer conditions and unseasonal rains which reduced demand. However, segment results were flat at Rs. 95.01 crore compared to Rs. 95.29 crore during the same period in the previous year due to a better product mix and cost rationalization measures.

“I am happy to see evidence of demand revival in the corporate, institutional and industrial sectors, while consumer spending continues to be robust. We expect the forthcoming festival season to be good for the cooling products segment, and order finalization in electro-mechanical projects and the professional electronics and industrial systems businesses are both looking healthy. Overall, I am optimistic about our business prospects for the rest of the financial year.”

Suneel M Advani
Chairman of the Board,
Blue Star Limited

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