Blue Star reports modest performance despite COVID-19 impact

Air conditioning and commercial refrigeration major Blue Star Limited reported its financial performance for the quarter and year-ended March 2020.

Revenue from operations maintained impressive growth momentum in-line with the company's plans until the end of the third quarter of the financial year. The fourth quarter also started on track; however, the rapid spread of COVID-19 pandemic across the globe resulted in the significant demand and supply chain disruptions across India, in the month of March.

The company has reported revenue from operations of Rs 5,360.19 crore for the year ended March 31, 2020, on a consolidated basis as compared to Rs 5,234.84 crore during FY19, representing modest growth of 2.4 per cent. The operating profit for the year was Rs 282.78 crore, compared to Rs 346.54 crore in FY19. Net profit for the year was Rs 143.25 crore as compared to Rs 190.06 crore in FY19.

For the quarter-ended March 31, 2020, the company reported revenue from operations to Rs 1,299.36 crore, compared to Rs 1,595.84 crore in the same period of the previous year. Operating profit decreased to Rs 37.33 crore from Rs 109.44 crore in the same period last year primarily, due to the lower profits resulting from significantly reduced sales in the month of March 2020.

Speaking on the announcement, Vir Advani, Vice Chairman & Managing Director of Blue Star Limited stated that while the demand had taken a hit due to the nationwide lockdown, the company is hopeful that a gradual recovery might be seen from May 2020 onwards. He further added that with tier 3, 4 & 5 towns, which are comparatively less impacted, accounting for close to 60 per cent of the revenue for unitary products, the company may partially make up for the lost summer season sales.

At 10 am on Wednesday, the stock was trading at Rs 479.20, up by 0.65 per cent or Rs 3.10 per share. The 52-week high is recorded at Rs 887 and the 52-week low is Rs 425 on BSE.