India's Blue Star misses Q2 profit view on weakness in refrigeration appliances segment

Blue Star

06/11/2024 14:28

Nov 6 (Reuters) - Blue Star  BLUS.NS  on Wednesday
reported second-quarter profit that missed estimates as it
struggled to increase sales of commercial refrigeration
appliances such as water coolers and deep freezers.
    The company's consolidated net profit rose 36% to 961.9
million rupees ($11.4 million) in the three months ended Sept.
30, but missed analysts' expectations of 965.6 million rupees,
according to estimates compiled by LSEG.
    Revenue from its segment which makes water coolers and deep
freezers rose just 5% as new quality control regulations crimped
sales. The segment contributes about a third to the
total revenue. 
    Delays in ramping up production of a new range of deep
freezers also slowed revenue growth, the company said.
    "The commercial refrigeration business faced setbacks in the
first half of the year due to regulatory changes and we expect
this impact to be temporary," said Chairman and MD Vir Advani.
    Still, Blue Star's overall revenue jumped to 22.76 billion
rupees, beating expectations of 22.2 billion rupees, helped by a
32% growth in the segment that makes commercial air conditioning
systems.

    <^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
Blue star    https://tmsnrt.rs/3CdmMjK
    ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>
 (Reporting by Aleef Jahan and Chris Thomas; Editing by Eileen
Soreng)
 ((aleefjahan.cs@thomsonreuters.com))