India's Blue Star posts jump in Q4 adjusted profit on robust air conditioner demand

Voltas

02/05/2024 12:45

BENGALURU, May 2 (Reuters) - Indian air-conditioner (AC)
maker Blue Star's  BLUS.NS  fourth-quarter adjusted profit
jumped more than 46% on Thursday, buoyed by heavy demand for its
ACs as consumers prepared for a hotter-than-usual summer.
    
    WHY IT'S IMPORTANT
    India is currently experiencing a blistering summer, which
has driven up sales of products such as ACs and coolers.
    In March, Blue Star said it launched dozens of new home AC
products, targeting a 25% jump in revenue from that business
this summer, compared with a 5% rise last year.
    Peer Havells India  HVEL.NS  also posted a higher quarterly
profit on strong demand for room ACs and fans. Voltas  VOLT.NS 
is expected to release its results next week.
    
    BY THE NUMBERS
    Mumbai-based Blue Star's consolidated profit before
exceptional items and tax jumped to 2.14 billion rupees ($25.6
million) in the quarter, from 1.46 billion rupees a year ago.
    Its net profit, however, fell nearly 29% due to the year-ago
quarter recording a one-time gain of 1.71 billion rupees from
the sale of land.
    Blue Star's revenue from operations rose nearly 27%. Revenue
in its business that makes ACs and commercial refrigerators
jumped 35%.
    
    KEY QUOTE
    "The summer season has also begun well and we anticipate
significant demand for room air conditioners and commercial
refrigeration products to continue," Chairman and Managing
Director Vir S. Advani said. 

    GRAPHIC 
 
** All values in the graphic are expressed in percentages (%)
 
 ($1 = 83.4485 Indian rupees)

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Jan-March stock performance_Blue Star    https://tmsnrt.rs/3UKQq6Y
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 (Reporting by Navamya Ganesh Acharya in Bengaluru; Editing by
Savio D'Souza)
 ((Navamya.GaneshAcharya@thomsonreuters.com; +91 8805175330 ;))