India's Blue Star doubles Q1 profit, beats view as new launches drive demand

Voltas

06/08/2024 11:14

BENGALURU, Aug 6 - 
    India's Blue Star  BLUS.NS  beat first-quarter profit estimates on Tuesday as the 
    launch of dozens of new
     air conditioner models helped the appliance maker tap into customer demand during the summer's unprecedented
heatwaves.
  
    Blue Star's consolidated net profit rose 102.6% to 1.69 billion rupees ($20.14 million) for the three months ended
June 30, surpassing analysts' expectations of 1.41 billion rupees, according to LSEG data.
    Revenue from its segment that makes ACs and commercial refrigerators jumped 44%, boosting its total revenue from
operations by 28.7% to 28.65 billion rupees.
    For further results highlights, click  USN 
        
  
    KEY CONTEXT
    Indians battled extreme heat during this summer from March to May, leading to a surge in demand for air-conditioners.
    Analysts had previously said they expect AC and cooler makers' sales to grow during the quarter, as more people sought
ways to cool down.
    They also flagged elevated prices of raw materials such as copper and aluminium.
    Last month, peer Crompton Greaves  CROP.NS  beat quarterly profit estimates, helped by higher demand for fans and
coolers, although Havells India  HVEL.NS  missed estimates, weighed by increased costs.
    
    PEER COMPARISON
                                        Valuation (next 12       Estimates (next 12            Analysts' sentiment
                                             months)                  months)          
                            RIC      PE      EV/EBIT  Price/S  Revenue      Profit     Mean      # of      Stock to  Div
                                             DA       ales     growth(%)    growth(%)  rating*   analysts  price     yield
                                                                                                           target**  (%)
 Blue Star Ltd              BLUS.NS   57.30    37.77  NULL        20.72       35.24    Buy             19    1.21     0.40
 Voltas Ltd                 VOLT.NS   58.68    43.97     2.58     16.43      100.80    Hold            34    1.12     0.36
 Havells India Ltd          HVEL.NS   64.92    44.08     5.02     20.28       26.76    Buy             21    0.97     0.49
 Crompton Greaves Consumer  CROP.NS   45.31    29.86     2.82     12.79       31.38    Buy             31    0.96     0.67
 Electricals Ltd                                                                                                     
 * Mean of analysts' ratings standardised to a scale of Strong Buy, Buy, Hold, Sell, and Strong Sell
 ** 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 LSEG

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Blue Star    https://tmsnrt.rs/4dcVtDY
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 (Reporting by Aleef Jahan; Editing by Janane Venkatraman
)
 ((aleefjahan.cs@thomsonreuters.com))