India's Blue Star posts rise in Q1 profit on robust sales

Blue Star

03/08/2023 10:19

BENGALURU, Aug 3 (Reuters) - Indian air conditioner maker Blue Star  BLUS.NS  on Thursday reported an
over-12% rise in first-quarter profit, as a warmer summer led to a rise in sale of air conditioners.
    Consolidated net profit rose to 833.5 million rupees ($10 million) for the quarter ended June 30, from
742.5 million rupees a year ago.
    Revenue from operations was up 12.6% at 22.26 billion rupees.
    For further results highlights, click  urn:newsml:reuters.com:*:nFWN39K04H.
    
    KEY CONTEXT
    India's air-conditioning industry has gained significantly from the early arrival of summer this year. Room
AC sales saw a sharp uptick during the quarter amid healthy consumer sentiment.
    Easing inflation and a thrust on in-house manufacturing are likely to boost domestic consumption, industry
watchers say. 
    Blue Star's order inflows have risen nearly 71% over the past two years after a revamp of its product
portfolio and its foray into the railway electrification sector.
    Rival Havells India  HVEL.NS  last month posted an 18.5% rise in its first-quarter profit.
    
    
    PEER COMPARISON
                                  Valuation (next    Estimates (next 12   Analysts' sentiment          
                                    12 months)            months)                                      
                      RIC         PE     EV/EBITDA  Revenue     Profit    Mean     # of      Stock to  Div
                                                    growth      growth    rating*  analysts  price     yield
                                                                                             target**  (%)
 Blue Star Ltd         BLUS.NS    36.98      21.60    18.43      45.11    Buy            19    0.97        0.77
 Voltas Ltd            VOLT.NS    39.22      28.69    14.73      45.15    Hold           40    0.91        0.53
 Havells India Ltd     HVEL.NS    51.73      34.45    15.00      29.57    Buy            23    0.92        0.57
 Crompton Greaves      CROP.NS    29.05      19.90    11.06      21.70    Buy            36    0.85        1.03
 Consumer                                                                                              
 Electricals Ltd                                                                                       
 
    * 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
    
    APRIL-JUNE STOCK PERFORMANCE
    
    
    -- All data from Refinitiv
    -- $1 = 82.7470 Indian rupees
    



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Blue Star Q1 Profit    https://tmsnrt.rs/3q8jbho
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 (Reporting by Biplob Kumar Das and Kashish Tandon in Bengaluru; Editing by Varun H K)
 ((Biplobkumar.das@thomsonreuters.com; 9101861583;))