India's Blue Star misses profit estimates as costs rise

Blue Star

07/05/2025 12:14

May 7 (Reuters) - India's Blue Star BLUS.NS reported a smaller-than-expected fourth-quarter profit on Wednesday, hurt by rising expenses, particularly for raw materials.

The cooling appliances maker's consolidated net profit rose 20.6% to 1.94 billion rupees ($22.9 million) in the three months ended March 31, but missed analysts' expectations of 2.16 billion rupees, as per data compiled by LSEG.

A spike in the air conditioner maker's raw materials costs pushed up its expenses by 21.4%.

Total revenue from operations rose 20.8% to 40.19 billion rupees, but fell short of analysts' expectations of 40.86 billion rupees.

KEY CONTEXT

Consumer durable makers, including Blue Star, saw a rise in prices of raw materials, such as copper and aluminium, during the quarter.

Its peers Havells India HVEL.NS and Orient Electric ONTE.NS also reported higher costs, but posted upbeat results, supported by strong demand for cooling appliances ahead of the summer season.

PEER COMPARISON

Valuation (next 12 months)
Estimates (next 12 months)
Analysts' sentiment
RIC
PE
EV/EBITDA
Revenue growth(%)
Profit growth(%)
Mean rating*
# of analysts
Stock to price target
Div yield(%)
Blue Star
BLUS.NS
44.80
29.25
18.97
32.94
BUY
16
0.87
0.42
V Guard Industries
VGUA.NS
39.08
24.88
13.73
25.16
BUY
15
0.85
0.37
Voltas
VOLT.NS
37.14
28.68
13.49
23.43
BUY
33
0.80
0.44
Havells India
HVEL.NS
54.85
37.13
13.96
20.24
Buy
24
0.89
0.62

* The mean of analyst ratings standardised to a scale of Strong Buy, Buy, Hold, Sell, and Strong Sell

** The ratio of the stock's last close to analysts' mean price target; a ratio above 1 means the stock is trading above the PT

JANUARY-MARCH STOCK PERFORMANCE

-- All data from LSEG

($1 = 84.7340 Indian rupees)

BLUS https://tmsnrt.rs/43jyunS

 (Reporting by Aleef Jahan)

 ((aleefjahan.cs@thomsonreuters.com))