India's Blue Star says Q4 profit triples on strong AC demand

Blue Star

04/05/2023 12:19

BENGALURU, May 4 (Reuters) - Indian air conditioner maker Blue Star Ltd  BLUS.NS  said on Thursday
that its fourth-quarter profit nearly tripled, as an early summer and soaring temperatures spurred AC sales.
    Consolidated net profit rose to 2.25 billion rupees ($27.5 million) in the quarter ended March 31, from
761.6 million rupees a year earlier. Total revenue from operations rose 16.4% to 26.24 billion rupees.
    Blue Star also said it will issue one bonus share for every share held.
    For further results highlights, click  urn:newsml:reuters.com:*:nL8N3714H5
        
  
        WHY IT MATTERS
  
    Blue Star's order inflows have risen nearly 71% over the past two years after a revamp of its product
portfolio and its expansion in the railway electrifications sector.
    The Indian air-conditioning industry has also gained significantly from the early arrival of summer this
year. Room AC sales saw a sharp uptick in March amid healthy consumer sentiment. Rising infrastructure
development in the country could drive up demand for cooling appliances even further, according to industry
watchers.
        
  
        PEER COMPARISON    
                                Valuation     Estimates (next 12      Analysts' sentiment      
                                (next 12           months)                                     
                                 months)                                                       
                     RIC      PE     EV/EBI  Revenue    profit     Mean     # of     Stock to  Div
                                     TDA     growth     growth     rating*  analyst  price     yield
                                                                            s        target**  (%)
 Blue Star Ltd                                                                               
 Voltas Ltd                                                                                  
 Havells India Ltd                                                                           
 Crompton Greaves                                                                            
 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

        JAN-MARCH STOCK PERFORMANCE
  
    
   
    -- All data from Refinitiv
    -- $1 = 81.7420 Indian rupees


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 (Reporting by Priya Sagar in Bengaluru; Editing by Savio D'Souza)
 ((Priya.Sagar@thomsonreuters.com;))