Blue Star`s Consolidated Revenue for Q3FY25 grows by 25% and Operating Profit by 35%
Building on the exceptional growth in the first half of this financial year, the Room AC business continued its strong upward trajectory during the quarter. Fueled by a strong festive season demand, the Room AC segment was an outlier amongst all consumer durables. Other key businesses also showed robust growth, driven by demand from several sectors. The increase in revenue and profit can be attributed to the Company’s continued investments in expanding distribution channels, innovation, R&D, digital transformation, and strategic supply chain planning.
Consolidated Financial Performance for Q3FY25
* The Company’s Revenue from Operations increased by 25.3% to Rs 2807.36 crores for the quarter ended Dec 31, 2024, compared to Rs 2241.19 crores during the same period the previous year.
* The Operating Profit (PBIDTA excluding Other Income) for the quarter improved significantly to Rs 209.38 crores (7.5% of Revenue) compared to Rs 155.35 crores in Q3FY24 (6.9% of Revenue).
* Other Income including treasury income for Q3FY25 was Rs 8.73 crores compared to Rs 12.67 crores in Q3FY24.
* Tax expense for the quarter was Rs 46.53 crores compared to Rs 33.93 crores in Q3FY24.
* Profit Before Exceptional Items and Tax grew by a significant 24.5% to Rs 167.2 crores during the quarter compared to Rs 134.29 crores in the same period of the previous year.
* Consequently, Net Profit for the quarter (after Exceptional Income) grew a significant 32% to Rs 132.46 crores compared to Rs 100.46 crores in the same quarter last year.
* Earnings per share (Face value of Rs 2.00) for Q3FY25 stood at Rs 6.44 as compared to Rs 4.89 for Q3FY24.
* Carried-forward order book as of December 31, 2024, is at a record high of Rs 6809.99 crores, as compared to Rs 6038.53 crores as of December 31, 2023, representing a growth of 12.8%.
* Capital Employed as of December 31, 2024, stood at Rs 2763.44 crores as compared to Rs 2298.88 crores as of December 31, 2023.
* The Company ended the quarter with a net cash position of Rs 102 crores as compared to a net cash position of Rs 157 crores as of December 31, 2023.
Consolidated Segment Performance for Q3FY25
* Revenue from the Electro-Mechanical Projects and Commercial Air Conditioning Systems segment grew by 32.2% to Rs 1562.41 crores during the quarter compared to Rs 1182.3 crores in the same quarter of the previous year. The Segment Result was Rs 118.73 crores (7.6% of Revenue) compared to Rs 96.66 crores (8.2% of Revenue) in Q3FY24. During the quarter, the Electro-Mechanical Projects business saw strong progress in order finalisations within the factories and data centre segments, while demand from the commercial real estate and infrastructure sectors was subdued. The Company continues to prioritise faster project execution while maintaining a healthy cash flow. The Commercial Air Conditioning business achieved moderate growth driven by demand from the manufacturing, educational, retail, and auditorium sectors. While the market potential for this business remains promising, the Company is witnessing liquidity challenges in certain segments, resulting in delays in order finalisations. The focus here continues to be on delivering innovative and customised solutions to meet evolving needs of customers.
* Unitary Products revenue grew by 21.9% to Rs 1164.36 crores in Q3FY25 compared to Rs 955.38 crores in Q3FY24. The Segment Result grew to Rs 94.78 crores (8.1% of Revenue) in Q3FY25 compared to Rs 67.93 crores (7.1% of Revenue) during the same period last year. The Room AC business, driven by a successful festive season, maintained its exceptional growth trajectory during this quarter as well. In the Commercial Refrigeration business, regulatory challenges in water coolers and deep freezers have been resolved, and the Company’s focus is now on preparing for the forthcoming summer season. The quick commerce and food delivery sectors are fueling growth in modular cold rooms, while the visi cooler market is expanding as retailers nationwide invest in upgrading stores.
* The Professional Electronics and Industrial Systems segment revenue declined by 22.1% to Rs 80.59 crores in the quarter compared to Rs 103.51 crores in Q3FY24. The Segment Result was Rs 6.2 crores in Q3FY25 (7.7% of Revenue) compared to Rs 15.21 crores (14.7% of Revenue) in Q3FY24. During the quarter, the Industrial Solutions business maintained strong momentum and growth, while both the Med-Tech and Data Security businesses experienced subdued performance. The operating cycle in these businesses is yet to revive, which is impacting order inflow.
Consolidated Financial Performance for the nine months ended December 31, 2024
* For the nine months ended December 31, 2024, the Company reported Revenue from Operations of Rs 7948.69 crores compared to Rs 6357.59 crores over the same period in the previous year, a growth of 25%.
* Operating Profit (PBIDTA excluding Other Income) was Rs 596.52 crores (7.5% of Revenue) compared to Rs 423.04 crores (6.7% of Revenue) during the same period last year, reflecting a growth of 41%.
* Net Profit was Rs 397.28 crores compared to Rs 254.6 crores during the same period in the previous year, representing a significant growth of 56%.
Outlook
Vir S. Advani, Chairman & Managing Director, Blue Star Limited adds, “As we conclude yet another quarter on a strong note, we are hopeful that the growth momentum shall continue owing to the key drivers such as the forthcoming summer season, record carried- forward order book, a potential revival in government spending, and increased capex from the private sector. However, challenges such as the depreciation of the Indian Rupee, rising commodity prices, and potential supply chain disruptions may pose obstacles. We have implemented strong mitigation strategies to address these challenges and are confident of continuing to deliver value to our stakeholders. We remain optimistic about FY25 being yet another remarkable year for the Company.”
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