Blue Star: The Cooling Solutions Company Posts Cool Numbers For Q1FY14

The cooling solutions company Blue Star has posted decent results for the first quarter of FY 2013-14. The company reported growth of 11% in its bottomline on a YoY basis to stand at Rs 22.77 crore for Q1FY14 as compared to Rs 20.54 crore for the same quarter of the last fiscal. The total operating income of the company stood at Rs 770.82 crore in the April-June quarter 2013, compared to Rs 731.42 crore during the same period of the previous fiscal, which shows growth of 5%.

On the segmental front, the company’s Electro Mechanical Projects segment has seen some slowdown as the revenues from this division witnessed a decline of 6.69% on a YoY basis for Q1FY14 to stand at Rs 342.49 crore. However, the Cooling Products witnessed strong growth of 18.77% for Q1FY14 and the revenues from this segment stood at Rs 396.26 crore. Revenues from the third and the last segment - Professional Electronics and Industrial Systems - stood at Rs 32.07 crore for Q1FY14, witnessing gains of 4.26%.

The company has announced focusing on profitable market segments and venturing into new markets and geographies through wider distribution and effective cost control initiatives, thus enhancing margins. The electro mechanical projects business continues to be under pressure due to the challenging business environment. The cooling products business has however been performing well, driven by the room air conditioners business.

The company, after witnessing gains of more than 2% in yesterday’s trade, is currently trading at Rs 160 (+0.70%) on the BSE.