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Blue Star H1FY15 Net Profit grows 32% to Rs 40.06 crores

Place: Mumbai
Date: October 21, 2014.

Financial Performance for Q2FY15

  • Airconditioning and commercial refrigeration major, Blue Star Limited reported Total Operating Income of Rs 637.97 crores for the quarter ended September 30, 2014, as compared to Rs 584.98 crores in Q2FY14, representing a growth of 9%.
  • Operating Profit (PBIDT excluding Other Non Operating Income) for the quarter declined 20% to Rs 20.61 crores from Rs 25.76 crores in the same period last year mainly due to an increase in marketing, advertising and sales promotion expenses.
  • Other Income for the quarter grew from Rs 2.91 crores to Rs 8.16 crores due to write-back of provisions.
  • Financial Expenses for the quarter declined by 17% to Rs 10.57 crores from Rs 12.80 crores in Q2FY14.
  • Consequently, Net Profit grew by 20% from Rs 7.52 crores in Q2FY14 to Rs 9.05 crores during the quarter.
  • Earnings per share for the quarter (Face value of Rs 2.00) stood at Rs 1.01 vis-à-vis Rs 0.84 in the corresponding quarter of the previous year.
  • The Electro Mechanical Projects and Packaged Airconditioning Systems business, accounting for 62% of the total revenues in the quarter, increased marginally by 3%, while segment results registered a decline of 5% to Rs 19.74 crores, mainly due to higher input costs. The erosion in profitability of this business is now under control since legacy orders now form only a small portion of the order book.
  • The revenue of Cooling Products during the quarter increased by 21%, while segment results grew an impressive 74% to Rs 14.17 crores over the same period. Though Q2 is typically a lean season for this line of business, an extended summer coupled with stable foreign exchange and commodity prices resulted in enhanced profitability.
  • The Professional Electronics and Industrial Systems business revenues increased by 25%, while segment results registered a growth of 16% to Rs 8.76 crores due to enhanced demand.
  • Carry Forward Order Book as on September 30, 2014 declined by 14% to Rs 1492 crores compared to Rs 1744 crores as at September 30, 2013. The Company was selective in pursuing orders which offered healthy margins and better commercial terms.

Financial Performance for the half-year ended September 30, 2014 (H1FY15)

  • For the half-year ended September 30, 2014, the Company reported Total Operating Income of Rs 1483.45 crores, as compared to Rs 1355.80 crores over the same period in the previous year, a growth of 9%.
  • Operating Profit (PBIDT excluding Other Non Operating Income) increased by 14% from Rs 64.38 crores to Rs 73.69 crores.
  • Net Profit grew 32% from Rs 30.29 crores to Rs 40.06 crores in H1FY15.

Outlook

The electro mechanical projects business was adversely affected as the closure of specific legacy orders in its last phase is taking longer than expected. Further, the commercial construction industry is yet to revive. However, considering the imminent improvement in the economic climate, this business is likely to improve in the long term. The cooling products business is expected to drive growth considering that Blue Star enjoys a strong brand perception in a low penetrated market thereby offering significant potential. The Company will continue its pursuit of prudent fiscal management in order to sustain this performance for the balance half of the year.

Blue Star decides not to pursue further the proposed Scheme of Amalgamation

Place: Mumbai
Date: October 9, 2014.

It will be recalled that the Board of Directors of the Company had approved on May 30, 2014, a Scheme of Amalgamation of the Company and its subsidiaries, viz. Blue Star Design & Engineering Limited (BSDEL) and Blue Star Electro Mechanical Limited (BSEML) under the provisions of Sections 391 to 394 of the Companies Act, 1956.

At its meeting held today (October 9, 2014), the Board of Directors reviewed the above Scheme of Amalgamation in light of certain amendments to the Income Tax Act in August 2014 under the Finance Act, 2014.

While the business rationale for integration of the Company and its two subsidiaries still holds good and justified, in view of the changes in the tax laws and regulatory changes and the fact that the Scheme had been envisaged under the erstwhile tax and regulatory regime, the proposed Scheme to achieve the integration in the current context appears inappropriate.

Under the circumstances, the Board has decided not to proceed with the same and not to pursue the Scheme any further.

Since the original appointed date of the Scheme was October 1, 2014, there will not be any material implications of this decision on financials of the Company.

Blue Star Q1 Net Profit grows 36% to Rs 31 crores

Place: Mumbai
Date: July 28, 2014.

Financial Performance for Q1FY15

  • Airconditioning and commercial refrigeration major, Blue Star Limited reported Total Operating Income of Rs 845.48 crores for the quarter ended June 30, 2014, as compared to Rs 770.82 crores in Q1FY14, representing an increase of 10%.
  • Operating Profit (PBIDT excluding Other Non Operating Income) for the quarter increased 37% to Rs 53.08 crores from Rs 38.62 crores in Q1FY14.
  • During the quarter, Other Income declined 15% to Rs 3.54 crores as compared to Rs 4.18 crores during the same period last year.
  • Financial Expenses for the quarter declined marginally by 6% to Rs 11.04 crores from Rs 11.70 crores in Q1FY14.
  • Tax expense for the quarter was Rs 5.16 crores as compared to no expense in the same period last year.
  • Consequently, Net Profit grew 36% from Rs 22.77 crores in Q1FY14 to Rs 31.01 crores during the quarter.
  • Earnings per share for the quarter (Face value of Rs 2.00) stood at Rs 3.45 vis-à-vis Rs 2.53 in the corresponding quarter of the previous year.
  • The Electro Mechanical Projects and Packaged Airconditioning Systems business, accounting for 40% of the total revenues in the quarter, declined 4% while segment results registered a sharp decline of 70% to Rs 5.42 crores. The decrease in profitability was mainly due to slower execution of projects resulting in lower billings coupled with cost overruns in specific legacy projects. However, such legacy projects now form a small base of the total order book and the margin of this business is likely to improve over the next few quarters since the rest of the order book comprises projects with healthy margins.
  • Cooling Products revenue comprised 57% of the total revenues of the Company during the quarter. The segment registered a growth of 22% driven by enhanced sales of room airconditioners and refrigeration products due to an extended summer and superior brand perception. Segment results grew significantly by 67% to Rs 70.59 crores over the same period mainly due to higher manufacturing capacity utilisation due to indigenisation, stable foreign exchange and higher price realisation.
  • The Professional Electronics and Industrial Systems segment revenues increased by a marginal 2%, while segment results declined 24% to Rs 4.27 crores, owing to the unfavourable business climate.
  • Carry Forward Order Book as on June 30, 2014 increased by 9% to Rs 1572 crores as compared to Rs 1438 crores as at June 30, 2013.

Outlook

The economic environment is showing signs of improvement with the formation of a stable Government. While the electro mechanical projects business continues to be adversely impacted mainly due to significant correction in project estimates of specific legacy orders, the performance is likely to improve in the medium term with the revival of the commercial construction segment. The cooling products business, driven by the residential segment, has been performing better than the industry owing to superior brand equity, wider distribution reach and impressive product range. The Company intends to continue to focus on prudent cost control and fiscal management in order to sustain this performance for the rest of the year.

Shobana Kamineni appointed to the Board of Blue Star Limited

Place: Mumbai
Date: June 10, 2014.

Airconditioning and commercial refrigeration major, Blue Star Limited has announced the appointment of Shobana Kamineni as an Additional Director of the Company, with effect from May 30, 2014.

Shobana Kamineni holds a Bachelors Degree in Economics, and has an Accelerated Diploma in Hospital Administration from Columbia University, New York. As a member of the founding family of the Apollo Hospital Group, she has been instrumental in catalysing several of the Group's ambitious projects, right from their early days.

Shobana spearheads Apollo Pharmacy - India's largest pharma retailer. In 2008, she was at the helm of Apollo's foray into Health Insurance in collaboration with Munich Re, named Apollo Munich Health Insurance. She has also nurtured Apollo Health Education and Research Foundation's emergence as a milestone institution in clinical research in the South. Shobana is the Vice Chairperson of the KEI Group, a Member of the Executive Council and Finance Committee of Osmania University, Hyderabad as well as a Member on the Advisory Committee of NCC. She is the Chairperson of CII National Public Health Committee, and a past Chairperson of CII- Southern Region.

Shobana Kamineni, with her brilliant professional accomplishments, proudly assumes the position of the first-ever woman Director on the Board of Blue Star.

Blue Star FY14 Net Profit grows 47% to Rs 75.90 crores

Place: Mumbai
Date: May 30, 2014.

Standalone Financial Performance for 2013-14

  • Airconditioning and commercial refrigeration major, Blue Star Limited reported Total Operating Income of Rs 2770.38 crores for the year ended March 31, 2014, compared to Rs 2767.06 crores earned last year.
  • Operating Profit (PBIDT excluding Other Income) for the year increased by 7% to Rs 105.72 crores from Rs 98.82 crores in the previous year.
  • Other income increased 49% to 54.51 crores from Rs 36.53 crores, mainly on account of enhanced interest and dividend income on investments.
  • Financial Expenses for the year were about the same as last year at Rs 49.64 crores as compared to Rs 49.86 crores in FY13.
  • Consequently, Net Profit grew 47% to Rs 75.90 crores as compared to a Net Profit of Rs 51.73 crores last year.
  • Earnings per share for the year (Face value of Rs 2.00) stood at Rs 8.44 vis-à-vis Rs 5.75 in the previous year.
  • The Electro Mechanical Projects and Packaged Airconditioning Systems business, accounting for 55% of the total revenues, declined 6% while segment results decreased 7% to Rs 67.15 crores mainly due to correction in the estimates of project revenues and costs based on revised quantity estimates and slower execution of projects.
  • Cooling Products revenue registered an increase of 11% in the year, while segment results increased by 18% to Rs 94.77 crores. Despite the sharp depreciation of the rupee, the Company managed to enhance profitability in room airconditioners as well as deep freezers through a concerted effort on value addition and value engineering as well as better price realization. The increase in capacity utilization of the manufacturing plants also aided in the increase in profitability.
  • The Professional Electronics and Industrial Systems business revenues reduced by 3%, while segment results were about the same as last year at Rs 29.83 crores, owing to the decrease in demand in the capital goods sector and the challenging economic environment.
  • Carry Forward Order Book as on March 31, 2014 increased by 5% to Rs 1478 crores compared to the order book of Rs 1412 crores as at March 31, 2013.

Dividend

  • The Directors have recommended a Dividend of Rs 4.00 per equity share of Rs 2.00 each (Previous Year Rs 3.00 per equity share which included a special dividend of Re 1.00 per equity share)

Consolidated Financial Performance for 2013-14

  • On a consolidated basis, Total Operating Income stood at Rs 2914.88 crores for the year ended March 31, 2014 as compared to Rs 2924.01 crores in FY13. The consolidated financial results include the results of the Company's wholly owned subsidiary Blue Star Electro Mechanical Limited and Blue Star Design & Engineering Limited, joint ventures namely, Blue Star M& E Engineering SDN BHD, Malaysia and Blue Star Qatar (WLL) and the share of profit in the associate company Blue Star Infotech Limited.
  • Operating Profit (PBIDT excluding Other Non-Operating Income) for the year was Rs 105.26 crores as compared to Rs 90.40 crores in FY13.
  • Net Profit for the year grew 98% to Rs 77.54 crores as compared to Rs 39.07 crores registered last year.

Standalone Performance for Q4FY14

  • Total Operating Income at Rs 868.68 crores increased by 1% over the same period last year.
  • Operating Profit for the quarter increased 50% to Rs 29.80 crores as compared to Rs 19.92 crores in Q4FY13.
  • Net Profit for the quarter increased 131% to Rs 42.79 crores as compared to Rs 18.55 crores registered during the same period last year.

Scheme of Amalgamation

The Board of Directors has approved integration of the Company and its subsidiaries, Blue Star Design Engineering Ltd and Blue Star Electro Mechanical Ltd, through a scheme of amalgamation (the scheme) as per the provisions of Sec 391 and Sec 394 of the Companies Act 1956. The Appointed Date of the amalgamation is October 1, 2014 and the scheme is subject to necessary approval of shareholders, creditors, statutory authorities and the Hon'ble High Court of Bombay.

Outlook

With the formation of a stable Government, the Company is hopeful of a revival in the investment climate of the country. Enhanced capital investments as well as a recovery in the commercial construction segment will benefit the electro mechanical projects as well as the professional electronics and industrial systems businesses.

The cooling products business continues to perform well mainly due to the superior brand image that the Company enjoys. Blue Star, which was traditionally strong in the corporate and commercial segment, forayed into the residential segment a few years ago with its room airconditioners. Thereafter, the business has grown considerably, outperforming the market year on year. Considering the low penetration levels in the country and the Company’s premium brand perception, the cooling products business offers significant potential in the long-term.

For additional information, please contact: B Thiagarajan, Executive Director & President, AC&R Products Business, Blue Star Limited, Bandbox House, 254D, Dr Annie Besant Road, Worli, Mumbai – 400 030 email: bthiagarajan@bluestarindia.com Telephone: 09600034725.

Blue Star launches a new line-up of Inverter Split ACs on the Green platform; targets a major market share in the premium segment.

Place: Bengaluru
Date: April 09, 2014.

Airconditioning and commercial refrigeration major, Blue Star Limited, has announced the launch of a new range of highly intelligent and eco-friendly inverter split airconditioners for the residential segment. These airconditioners, apart from contemporary features and sophisticated technology, offer high energy efficiency resulting in significant power savings.

Blue Star, which has over seven decades of experience in providing expert cooling solutions, has been traditionally strong in the corporate and commercial segment such as offices, restaurants, showrooms, boutiques and ATMs. Three years ago, the Company forayed into the retail channel to cater to the residential segment and made significant changes to its marketing mix. This initiative met with resounding success and Blue Star's airconditioner sales have grown considerably, outperforming the market year on year. In fact, in the current year, the residential segment now contributes to over half of its overall airconditioner sales signifying the tremendous response that the Company has received from the home segment. The Company plans to continue its thrust in both the corporate & commercial segment and residential segment with its new line up of inverter split airconditioners as well as star-rated split airconditioners on the Green platform.

This summer, the Company intends to aggressively promote its new and comprehensive range of inverter split airconditioners. Inverters save upto 30% power over the 5-star rated split airconditioners. The inverter compressor in these units varies its speed depending on the ambient load, resulting in perfect cooling, apart from significant energy savings. Considering the technological advantages that inverter split airconditioners offer and the fact that the price difference between the 5-star rated split airconditioners and inverter-split airconditioners has reduced significantly, inverters are anticipated to grow exponentially over the next few years. Though inverter split airconditioners comprise over half the market in countries such as China, inverters are only about 5% of the Indian market and this share is likely to triple over the next couple of years.

The inverter split airconditioner range will is being offered in capacities of 0.75 TR, 1.0 TR, 1.5 TR and 2.0 TR. In addition to the regular 'cool' models, a full range of the same is being offered with 'heating & cooling' functions, especially meant for locations which need winter heating. In the entire inverter range of airconditioners, the refrigerant used is the eco-friendly R410 which minimises the emission of ozone depleting substances.

Apart from one-on-one inverter airconditioners, Blue Star also offers a break-through product called the Multi-Inverter Split AC, wherein an inverter-technology based outdoor unit can be coupled to three indoor units to aircondition upto three rooms simultaneously. This product range appeals to consumers who want to aircondition their entire house and at the same time would like to dramatically save on power bills making it ideal for large villas, big row houses and other multi-room applications. This futuristic range helps in reducing the number of outdoor units from three to just one unit, thereby maintaining the look of the façade of the building. The indoor units also have a state-of-the art sleek design with a diamond sparkle to appeal to interior designers and architects.

The HCFC ozone-depleting refrigerant phase-out plan is being implemented by the industry and the Blue Star has taken steps to comply with the programme. This year, Blue Star has launched the largest range of 16 models with the green R10A eco-friendly refrigerant. This range is available in 3 Star and 5 Star variants. It is also available in white and red colour models in 5 star split airconditioners. With effect from January 2014, BEE has upgraded the energy standards of room airconditioners to a higher level, in line with the Energy Conservation programme. All the star-rated units this year have a higher Energy Efficiency Ratio (EER) as compared to the same star units last year, translating to savings in power bills. Blue Star's new line-up of room airconditioners comprising over 63 models adheres to the new energy standards prescribed by the Bureau of Energy Efficiency (BEE).

The Company also plans to enhance investments on new product development and research and design initiatives in order to continue to develop modern and sophisticated products competing with the best in the world.

Distribution

As regards to distribution, in 2014, Blue Star's room airconditioners will be available in 3000 outlets in around 500 locations spread across the length and breadth of the country, vide exclusive and multi-brand sales and service airconditioning dealers, retail showrooms and modern trade. The Company has also built up a strong installation and service franchise network to support the retailers. The expansion of the Company's presence in Tier 3, 4 and 5 markets has contributed immensely to its growth. Around 50% of the Company's sales are from smaller towns since consumers in these markets are aspirational and prefer premium brands.

Advertising and Brand Communication

In terms of advertising and brand communication, the Company has plans to invest about Rs 25 crores in the forthcoming summer season with a set of TV commercials supported by ads in mainline dailies, cinema and hoardings. It also intends to enhance its digital marketing efforts in social media as well as the internet, considering that most Blue Star buyers belong to the highest socio-economic category (SEC A), who are active on the internet. The differentiated value proposition to the residential audience will continue to be 'Get office-like cooling at home' which leverages Blue Star's expertise in cooling offices and communicates that one can get the very same expertise at home.

Blue Star has also been recognized as a 'Consumer and Industrial Superbrand' by Superbrands, a global agency which selects strong and powerful brands from across the world. It acknowledges that the brands to win this laurel are those with high product integrity and brand development, thus succeeding to win consumer trust. Blue Star is one of the very few brands to be accorded the Superbrands status in both, the business as well as the consumer segments.

Targeted Growth for FY15

Speaking to the Press at a conference held at Bengaluru, B Thiagarajan, Executive Director & President – AC&R Products Business, Blue Star Limited said, "The room airconditioners market in India grew by about 8% during 2013, while Blue Star outperformed the market growing 13%. We find that the room airconditioner segment is becoming more brand-conscious preferring specialist airconditioning players. This trend is helping us since Blue Star is perceived to be a premium and aspirational brand and our pedigree, product range as well as pricing is in conjunction with this image. Blue Star is a strong contender in the consideration set of the discerning consumer, and several home consumers have instilled their faith in us. In addition, Blue Star continues to be a strong player in the corporate and commercial segment which comprises 25% of the overall size. The market for room airconditioners is expected to grow by around 15% in FY15 and considering our 3-year track record of outperforming the market coupled with our impressive new energy-efficient product range, we hope to achieve growth of 25% from the residential segment."

The new iconic Terminal 2 at Mumbai. Airconditioning and Plumbing by Blue Star.

Place: Mumbai
Date: February 12, 2014.

Central airconditioning and commercial refrigeration major, Blue Star Limited has successfully executed the airconditioning as well as plumbing works of the integrated Terminal Building, Terminal 2 of the Chhatrapati Shivaji International Airport (CSIA), Mumbai. Terminal 2, also known as T2 has commenced operations today.

CSIA is one of India's busiest airports with passenger traffic of over 30 million per year. CSIA has three domestic terminals at Santa Cruz and two international terminals at Sahar in operation.

Mumbai International Airport Pvt. Ltd. (MIAL), a joint venture between the GVK led consortium (74%) and Airports Authority of India (26%), was awarded the mandate of modernising and upgrading Mumbai's Chhatrapati Shivaji International Airport (CSIA) in 2006.

MIAL's master plan was to build the integrated terminal with a vision and framework to modernise this airport as one of the best airports in the world. The separate international and domestic facilities have been merged into the new integrated terminal building, T2. T2 is spread across 4.4 million sq feet and is equipped to cater to 40 million passengers per annum.

The works of the new integrated Terminal Building was split into two phases. While Blue Star was awarded the contract to aircondition the South West Pier in early 2010, it later won the contract to execute airconditioning as well as plumbing works of T2 valued at about Rs 150 crores.

Blue Star's scope of work comprised supply, installation, testing, commissioning, handover, training, maintenance and warranty of all airconditioning as well as the plumbing services. The equipment supplied included air handling units, cooling towers, pumps, ducting, piping, insulation, ventilation fans, electrical panels and building management systems.

Vir S Advani, Executive Director & President- Electro Mechanical Projects Business adds, "Blue Star is proud to be part of this momentous occasion wherein the Company has played a role in the transformation of CSIA to one of the best airports in the world. Blue Star's seamless turnkey MEP solutions, superior project management skills and impressive track-record of on-time completion have been the key to this achievement."

The other airport projects that Blue Star has airconditioned till date include Aurangabad, Ahmedabad, Thiruvananthapuram, Mangalore, Nagpur, Jaipur, Amritsar, Madurai, Dehradun, Varanasi, Raipur, Goa and Pune."

For additional information, please contact: B Thiagarajan, Executive Director & President, AC&R Products Business, Blue Star Limited, Bandbox House, 254D, Dr Annie Besant Road, Worli, Mumbai – 400 030 email: bthiagarajan@bluestarindia.com Telephone: 09821078098.

Blue Star 9-month Net Profit at Rs 33.10 crores

Place: Mumbai
Date: January 23, 2014.

Financial Performance for Q3FY14

  • Airconditioning and commercial refrigeration major, Blue Star Limited reported Total Operating Income of Rs 545.90 crores for the quarter ended December 31, 2013, as compared to Rs 598.80 crores in Q3FY13.
  • Operating Profit (PBIDT excluding Other Non Operating Income) for the quarter reduced to Rs 14.89 crores from Rs 25.43 crores in the same period last year.
  • Financial Expenses for the quarter decreased to Rs 12.60 crores from Rs 13.72 crores in Q3FY13.
  • Consequently, Net Profit declined to Rs 2.81 crores during the quarter from Rs 5.37 crores in Q3FY13.
  • Earnings per share for the quarter (Face value of Rs 2.00) stood at Rs 0.31 vis-à-vis Rs 0.60 in the corresponding quarter of the previous year.
  • The Electro Mechanical Projects and Packaged Airconditioning Systems business, accounting for 64% of the total revenues in the quarter, declined by 12%, while segment results registered a decline of 21% to Rs 18.11 crores, mainly due to slower execution of projects as well as correction in the estimates of project revenues and costs based on revised quantity estimates.
  • The revenue of Cooling Products in the quarter was same as Q3FY13, while segment results grew 21% to Rs 4.58 crores over the same period. Better market penetration, proactive revision in selling prices as well as a higher mix of in-house manufactured products resulted in the increase in profitability.
  • The Professional Electronics and Industrial Systems business revenues declined by 11%, while segment results registered a decrease of 10% to Rs 8.61 crores due to the unfavourable business climate.
  • Carry Forward Order Book as on December 31, 2013 increased to Rs 1737 crores compared to Rs 1628 crores as at December 31, 2012.

Financial Performance for the 9-month period ended December 31, 2013 (Cumulative Q3FY14)

  • For the 9-month period ended December 31, 2013, the Company reported Total Operating Income of Rs 1901.70 crores, as compared to Rs 1908.82 crores over the same period in the previous year.
  • Operating Profit (PBIDT excluding Other Non Operating Income) reduced to Rs 75.92 crores from Rs 79.11 crores.
  • Net Profit at Rs 33.10 crores was about the same as the previous year.

Outlook

The dull business environment continues to dampen capital investment decisions as well as commercial construction, resulting in adverse impact on the profitability of the Company. However, over the 9-month period of the current financial year, the Company has managed to maintain its overall performance due to prudent financial management, cost control measures and enhanced distribution reach, and will work towards sustaining this performance in the last quarter of the financial year.

For additional information, please contact: B Thiagarajan, Executive Director & President, AC&R Products Business, Blue Star Limited, Bandbox House, 254D, Dr Annie Besant Road, Worli, Mumbai – 400 030 email: bthiagarajan@bluestarindia.com Telephone: 09821078098.

Blue Star makes deep inroads in the residential segment;
targets 25% growth in Room AC sales in FY15

Place: Chennai
Date: December 11, 2013.

Airconditioning and commercial refrigeration major, Blue Star Limited, has announced the launch of a new range of stylish, smart, eco-friendly and modern room airconditioners for the residential segment. These airconditioners, apart from contemporary features, choice of colours and sophisticated technology, offer high energy efficiency resulting in significant power savings.

Blue Star, which has seven decades of experience in providing expert cooling solutions, has been traditionally strong in the corporate and commercial segment such as offices, restaurants, showrooms, boutiques and ATMs for its room airconditioners. However, three years ago, the Company forayed into the retail channel to cater to the residential segment and made significant changes to its marketing mix. This initiative met with resounding success and Blue Star's room airconditioner sales have grown considerably, outperforming the market year on year. In fact, in the current year, the residential segment now contributes to over half of its overall room airconditioner sales signifying the tremendous response that the Company has received from the home segment. The Company plans to continue its thrust in this segment with its new line-up for 2014.

New line-up of energy-efficient products

Blue Star's new line-up of room airconditioners comprising over 60 models adheres to the new energy standards prescribed by the Bureau of Energy Efficiency (BEE). With effect from January 2014, BEE has upgraded the energy standards of room airconditioners to a higher level, in line with the Energy Conservation programme. All the star-rated units this year will have a higher Energy Efficiency Ratio (EER) as compared to the same star units last year, translating to savings in power bills. Further, within the range of EER specified for each star-rating, Blue Star has opted for a higher EER within each band, in order to maximize energy efficiency.

Apart from being super efficient, the new range of split airconditioners have a contemporary and stylish look with multi-colour options in the 3-star and 5-star models such as pearl white, two-tone silver, champagne gold and wine red to appeal to home consumers. Several markets in the country have shown their preference for coloured models rather than the traditional white ones, and colour models now comprise about 15% of Blue Star's split airconditioner sales. In addition, the new range boasts of several features including i-feel for comfort where one sits, seven filters for ultra-pure air, turbo operation, hidden display, long distance piping, auto mode, dry mode, sleep mode, blow/self clean function, elegant remote control, rust-resistant construction, self diagnosis, scroll compressor and acoustic insulation on compressor, amongst others.

The HCFC ozone-depleting refrigerant phase-out plan is being implemented by the industry and the Company has taken steps to comply with the programme. This year, the Company has launched a range of 16 models with R410A eco-friendly refrigerant and plans to further enhance this range in the future.

Also being launched is a unique 0.75 ton 5-star split airconditioner, which consumes just 740 W of power when the compressor is on, making it perhaps the lowest power consuming airconditioner in the country.

The Company also plans to aggressively promote its inverter range of residential split airconditioners for the benefit of upwardly mobile customers. The inverter compressor in these units varies its speed depending on the ambient load, resulting in perfect cooling, apart from significant energy savings. Inverters save upto 30% power over the 5-star rated split airconditioners. Considering the technological advantages that inverters offer and the fact that the price difference between the 5-star rated split airconditioners and inverter-based airconditioners has reduced significantly, inverters are anticipated to grow exponentially over the next few years. Though inverters comprise over half the market in countries such as China, inverters are only about 3% of the Indian market and this share is likely to triple over the next couple of years.

The Company also plans to enhance investments on new product development and research and design initiatives in order to continue to develop modern and sophisticated products competing with the best in the world.

Distribution

As regards to distribution, in 2014, Blue Star's room airconditioners will be available in 3000 outlets in around 500 locations spread across the length and breadth of the country, vide exclusive and multi-brand sales and service airconditioning dealers, retail showrooms and modern trade. The Company has also built up a strong installation and service franchise network to support the retailers. The expansion of the Company's presence in Tier 3, 4 and 5 markets has contributed immensely to its growth. Around 50% of the Company's sales are from smaller towns since consumers in these markets are aspirational and prefer premium brands.

Advertising and Brand Communication

In terms of advertising and brand communication, the Company has plans to invest about Rs 25 crores in the forthcoming summer season with a set of TV commercials supported by ads in mainline dailies, cinema and hoardings. It also intends to enhance its digital marketing efforts in social media as well as the internet, considering that most Blue Star buyers belong to the highest socio-economic category (SEC A), who are active on the internet. The differentiated value proposition to the residential audience will continue to be 'Get office-like cooling at home' which leverages Blue Star's expertise in cooling offices and communicates that one can get the very same expertise at home.

Blue Star has also been recognized as a 'Consumer and Industrial Superbrand' by Superbrands, a global agency which selects strong and powerful brands from across the world. It acknowledges that the brands to win this laurel are those with high product integrity and brand development, thus succeeding to win consumer trust. Blue Star is one of the very few brands to be accorded the Superbrands status in both, the business as well as the consumer segments.

Targeted Growth for FY15

Speaking to the Press at a conference held at Chennai, B Thiagarajan, Executive Director & President – AC&R Products Business, Blue Star Limited said, "The room airconditioners market in India grew by about 9% during 2013, while Blue Star outperformed the market growing 18%. We find that the room airconditioner segment is becoming more brand-conscious preferring specialist airconditioning players. This trend is helping us since Blue Star is perceived to be a premium and aspirational brand and our pedigree, product range as well as pricing is in conjunction with this image. Blue Star is a strong contender in the consideration set of the discerning consumer, and several home consumers have instilled their faith in us. In addition, Blue Star continues to be a strong player in the corporate and commercial segment which comprises 25% of the overall size. The market for room airconditioners is expected to grow by around 15% in FY15 and considering our 3-year track record of outperforming the market coupled with our impressive new energy-efficient product range, we hope to achieve growth of 25% from the residential segment."


For additional information, please contact: B Thiagarajan, Executive Director & President, AC&R Products Business, Blue Star Limited, Bandbox House, 254D, Dr Annie Besant Road, Worli, Mumbai – 400 030 email: bthiagarajan@bluestarindia.com Telephone: 09821078098.

Blue Star H1 Net Profit at Rs 30.29 crores

Place: Mumbai
Date: October 28, 2013

Financial Performance for Q2FY14

  • Airconditioning and commercial refrigeration major, Blue Star Limited reported Total Operating Income of Rs 584.98 crores for the quarter ended September 30, 2013, as compared to Rs 578.60 crores in Q2FY13.
  • Operating Profit (PBIDT excluding Other Non Operating Income) for the quarter increased 12% to Rs 22.60 crores from Rs 20.15 crores in the same period last year.
  • Financial Expenses for the quarter increased by 14% to Rs 12.80 crores from Rs 11.20 crores in Q2FY13.
  • Consequently, Net Profit grew marginally by 3% from Rs 7.27 crores in Q2FY13 to Rs 7.52 crores during the quarter.
  • Earnings per share for the quarter (Face value of Rs 2.00) stood at Rs 0.84 vis-à-vis Rs 0.81 in the corresponding quarter of the previous year.
  • The Electro Mechanical Projects and Packaged Airconditioning Systems business, accounting for 64% of the total revenues in the quarter, declined marginally by 1%, while segment results registered a decline of 24% to Rs 20.00 crores, mainly due to higher input costs.
  • The revenue of Cooling Products in the quarter was same as Q2FY13, while segment results grew 3% to Rs 8.15 crores over the same period. Q2 is typically a lean season for this line of business, due to monsoons in most parts of the country. Further, the appreciation of foreign exchange also had a significant adverse impact.
  • The Professional Electronics and Industrial Systems business revenues increased by 25%, while segment results registered a significant growth of 216% to Rs 8.32 crores. This sharp increase was mainly due to a revival in some segments addressed, coupled with enhanced business mix from high-margin segments.
  • Carry Forward Order Book as on September 30, 2013 increased marginally by 4% to Rs 1744 crores compared to Rs 1676 crores as at September 30, 2012.

Financial Performance for the half-year ended September 30, 2013 (H1FY14)

  • For the half-year ended September 30, 2013, the Company reported Total Operating Income of Rs 1355.80 crores, as compared to Rs 1310.02 crores over the same period in the previous year, a marginal growth of 3%.
  • Operating Profit (PBIDT excluding Other Non Operating Income) increased by 14% from Rs 53.68 crores to Rs 61.02 crores.
  • Net Profit grew 9% from Rs 27.81 crores to Rs 30.29 crores in H1 FY14.

Outlook

The devaluation of the rupee coupled with the slow business environment has put pressure on revenues and margins. Despite this, the Company managed to maintain its financial performance by widening its distribution reach as well as localization, strict cost control and prudent cash flow management. The Company expects to sustain this performance for the balance half of the year.


For additional information, please contact: B Thiagarajan, Executive Director & President, AC&R Products Business, Blue Star Limited, Bandbox House, 254D, Dr Annie Besant Road, Worli, Mumbai – 400 030 email: bthiagarajan@bluestarindia.com Telephone: 09821078098.

Blue Star Q1 Net Profit at Rs 22.77 crores

Place: Mumbai
Date: July 22, 2013

Financial Performance for Q1FY14

  • Airconditioning and commercial refrigeration major, Blue Star Limited reported Total Operating Income of Rs 770.82 crores for the quarter ended June 30, 2013, as compared to Rs 731.42 crores in Q1FY13, representing an increase of 5%.
  • Operating Profit (PBIDT excluding Other Non Operating Income) for the quarter increased 15% to Rs 38.42 crores from Rs 33.53 crores in Q1FY13.
  • During the quarter, Other Income declined 38% to Rs 4.38 crores as compared to Rs 7.01 crores during the same period last year, due to lower foreign exchange gains.
  • Financial Expenses for the quarter declined marginally by 7% to Rs 11.70 crores from Rs 12.53 crores in Q1FY13.
  • Consequently, Net Profit grew 11% from Rs 20.54 crores in Q1FY13 to Rs 22.77 crores during the quarter.
  • Earnings per share for the quarter (Face value of Rs 2.00) stood at Rs 2.53 vis-à-vis Rs 2.28 in the corresponding quarter of the previous year.
  • The Electro Mechanical Projects and Packaged Airconditioning Systems business, accounting for 44% of the total revenues in the quarter, declined 7% while segment results registered a significant increase of 63% to Rs 20.16 crores. The increase in profitability was mainly due to better gross margin and enhanced quality of new orders booked.
  • Cooling Products revenue registered a growth of 19% in the quarter driven by significant increase in sales of room airconditioners. Segment results grew 13% to Rs 42.31 crores over the same period.
  • The Professional Electronics and Industrial Systems business revenues increased by a modest 4%, while segment results declined 53% to Rs 3.37 crores, owing to the unfavourable business climate.
  • Carry Forward Order Book as on June 30, 2013 declined 22% to Rs 1438 crores compared to Rs 1848 crores as at June 30, 2012, mainly due to a concerted effort to improve the quality of new orders won.

Outlook

The Company returned to profitability in FY13 and this momentum continued in the first quarter of FY14 as well. The Company’s strategy of focusing on profitable market segments, entering new markets and geographies through wider distribution and effective cost control initiatives contributed immensely in enhancing margins. While, the electro mechanical projects business continues to be under pressure due to the challenging business environment, the cooling products business has been performing well, driven by the room airconditioners business. The sharp depreciation of the Rupee coupled with the difficult economic outlook are concern areas. The Company intends to continue to focus on the initiatives taken with regards to cost control and prudent financial management in order to sustain this performance for the rest of the year.


For additional information, please contact: B Thiagarajan, Executive Director & President, AC&R Products Business, Blue Star Limited, Bandbox House, 254D, Dr Annie Besant Road, Worli, Mumbai – 400 030 email: bthiagarajan@bluestarindia.com Telephone: 09821078098.

M K Sharma appointed to the Board of Blue Star Limited

Place: Mumbai
Date: May 29, 2013

Central airconditioning and commercial refrigeration major, Blue Star Limited has announced the appointment of M K Sharma as an Additional Director of the Company with effect from May 13, 2013.

M K Sharma is a Bachelor of Arts and Law, and holds Post Graduate Diplomas in Personnel Management and Labour Laws. He has also completed the Advanced Management Programme at the Harvard Business School. He has 35 years of diverse corporate experience to his credit across fields of law, human resources, corporate communications and corporate affairs in India as well as abroad.

M K Sharma started his illustrious corporate career in 1968 with DCM Limited. Thereafter, in 1974, he joined Hindustan Lever, beginning his managerial career in the legal and secretarial arena here. He grew rapidly in the Company, eventually joining the Board of Hindustan Unilever as a Wholetime Director in 1995. He retired from the Company in 2007 as the Vice Chairman, having assumed this position for seven years.

Presently, Sharma runs his own legal practice, M K Sharma & Associates. He is a Director on the Boards of several major companies. He is also actively involved with several industry associations and respected academic institutions.

M K Sharma, with his impressive list of professional accomplishments and firm belief in the highest standards of Corporate Governance, will bring rich experience and wise counsel to the Board of Blue Star.

B Thiagarajan elevated to the Board of Blue Star Limited

Place: Mumbai
Date: May 21, 2013

Central airconditioning and commercial refrigeration major, Blue Star Limited has announced the elevation of B Thiagarajan as a Wholetime Director of the Company with effect from May 13, 2013.

B Thiagarajan (55) earned a Bachelor of Engineering in Electrical and Electronics degree from Madurai University, India. He completed a Senior Executive Program at the London Business School in 2006. He has over three decades of experience, having worked for L&T, BPL and Voltas prior to joining Blue Star.

Thiagarajan joined Blue Star in 1998 to manage the Marketing Support Services and Customer Service functions. He soon assumed responsibility for Corporate Communications and Marketing where he played a significant role in building the image and brand equity of Blue Star. Over the years Thiagarajan took additional charge of the Service Business operations of Blue Star, and then of Corporate Affairs & Planning. He was elevated to President of the Airconditioning & Refrigeration Products Group in 2009. Under his leadership, the AC&R products business of the Company has grown significantly in terms of volumes and profitability.

Blue Star has long been committed to promotion from within its ranks, all the way up to the Managing Director position. The Company has had a series of professional employees on its Board of Directors for the last four or five decades, and this has motivated a very large number of high performers to stay on in the company for a large part of their careers. Thiagarajan is one more member of this elite group which also lists the current Managing Director in its ranks.

In his new assignment, Thiagarajan will oversee all manufacturing, marketing, after-sales service and supply chain activities of Packaged and Room Airconditioners, Refrigeration Products and Cold Storages. In addition, he will continue to be responsible for Corporate Communications & Marketing and Public Relations.

Thiagarajan plays an active role in the affairs of various industry forums, and is currently President of the Refrigeration and Airconditioning Manufacturers’ Association (RAMA). He is also a Member of National Council of Agriculture of CII, Chairman of the CII National Task Force on Cold Chain Development, and Executive Committee Member of the Indian Green Building Council.


Blue Star FY13 Net Profit at Rs 51.73 crores

Place: Mumbai
Date: May 13, 2013

Standalone Financial Performance for 2012-13

  • Airconditioning and commercial refrigeration major, Blue Star Limited reported Total Operating Income of Rs 2767.06 crores for the year ended March 31, 2013, compared to Rs 2700.83 crores earned last year, representing a marginal increase of 2%.
  • Operating Profit (PBIDT excluding Other Income) for the year increased to Rs 99.04 crores from a loss of Rs 10.51 crores in the previous year.
  • Financial Expenses for the year declined by 29% from Rs 70.25 crores to Rs 49.86 crores, due to prudent financial management and hedging of foreign exchange.
  • Consequently, Net Profit grew to Rs 51.73 crores as compared to a Net Loss of Rs 89.15 crores last year.
  • Earnings per share for the year (Face value of Rs 2.00) stood at Rs 5.75 vis-à-vis a negative of Rs 9.91 in the previous year.
  • The Electro Mechanical Projects and Packaged Airconditioning Systems business, accounting for 59% of the total revenues, increased 4% while segment results increased to Rs 72.33 crores as compared to a loss of Rs 85.09 crores in the previous year. Minimization of cost overruns, faster closure of jobs and a concerted effort to focus on more profitable segments helped the business get back to profitability.
  • Cooling Products revenue registered an increase of 3% in the year, while segment results declined by 8% to Rs 80.35 crores. Erosion of margins in sourcing and selling of installation accessories such as copper pipes caused the decline in profitability.
  • The Professional Electronics and Industrial Systems business revenues reduced by 14%, while segment results declined 43% to Rs 29.84 crores, owing to the decrease in demand in the capital goods sector and challenging economic environment.
  • Carry Forward Order Book as on March 31, 2013 reduced by 12% to Rs 1418 crores compared to the order book of Rs 1613 crores as at March 31, 2012.

Dividend

  • The Directors have recommended a Dividend of Rs 2.00 per equity share (Previous Year Re 1.00 per equity share). In addition, a special dividend of Re 1.00 per equity share has been recommended to commemorate the birth centenary of the founder Chairman of the Company, Mr Mohan T Advani, as well as the 70th anniversary of the founding of Blue Star.

Consolidated Financial Performance for 2012-13

  • On a consolidated basis, Total Operating Income stood at Rs 2924.01 crores for the year ended March 31, 2013. The consolidated financial results include the results of the Company's wholly owned subsidiary Blue Star Electro Mechanical Limited, joint ventures namely, Blue Star M& E Engineering SDN BHD, Malaysia, Blue Star Qatar (WLL) and Blue Star Design & Engineering Limited and the share of profit in the associate company Blue Star Infotech Limited.
  • Operating Profit (PBIDT excluding Other Non-Operating Income) for the year was Rs 90.40 crores as compared to an Operating Loss of Rs 22.18 crores in FY12.
  • Net Profit stood at Rs 39.07 crores for the year as compared to a Net Loss of Rs 105.10 crores registered last year.

Performance for Q4FY13

  • Total Operating Income at Rs 858.24 crores increased by 5% over the same period last year.
  • Operating Profit for the quarter was Rs 19.92 crores compared to an Operating Loss of Rs 37.40 crores in Q4FY12.
  • Net Profit for the quarter was Rs 18.55 crores as compared to a Net Loss of Rs 45.37 crores registered during the same period last year.

Outlook

The corrective steps taken in the previous year are showing results. The Company's effort to drive margins through price increases, value engineering, prudent working capital management and cost control coupled with a focus on improving the quality of new orders, helped it return to profitability during the year. While the electro mechanical projects business will continue to be under pressure over the next few quarters due to the challenging and uncertain business environment, the cooling products business is likely to perform well during the summer season. The Company intends to further enhance these efforts in order to sustain this performance over the current year as well.


For additional information, please contact: B Thiagarajan, President, Airconditioning & Refrigeration Products Group, Blue Star Limited, Bandbox House, 254D, Dr Annie Besant Road, Worli, Mumbai – 400 030 email: bthiagarajan@bluestarindia.com Telephone: 09821078098.

Blue Star expands its presence to 500 locations and 2500 outlets to aggressively
target the home segment

Place: Hyderabad
Date: January 25, 2013

Launches wide range of stylish room airconditioners with emphasis on energy efficiency.

Airconditioning and commercial refrigeration major, Blue Star Limited, has announced the launch of a new range of contemporary and stylish room airconditioners for the residential segment which will be available in 2500 outlets in about 500 cities and towns across the country. These airconditioners, apart from modern features, choice of colours and sophisticated technology, offer high energy efficiency resulting in significant power savings.

Blue Star is India's largest central airconditioning company with an experience of nearly seven decades in providing expert cooling solutions. Blue Star was erstwhile mainly targeting the corporate and commercial segment such as offices, restaurants, showrooms, boutiques and ATMs for its room airconditioners. However, the Company witnessed a significant increase in sales from the residential segment, mainly from consumers who believe that a specialist is better than a generalist and a conviction that if Blue Star is a leader in cooling large spaces, its room airconditioners must be good. To leverage on this trend, the Company forayed into the retail channel to cater to the residential segment, more aggressively from 2011, and made significant changes to its marketing mix. This initiative met with resounding success and Blue Star's room airconditioner sales have grown considerably, despite a decline in sales in the overall room airconditioners industry over the last couple of years. The Company plans to continue to aggressively target the residential segment in 2013.

New line-up of energy-efficient products

On the product front, Blue Star has launched an impressive new range of room airconditioners which adhere to the energy standards prescribed by the Bureau of Energy Efficiency (BEE). Further, within the range of Energy Efficiency Ratio (EER) specified for each star-rating, Blue Star has opted for a higher EER within each band, in order to maximize energy efficiency.

Apart from being energy efficient, the new range of split airconditioners have a new contemporary and stylish look with multi-colour options in the 3-star and 5-star models such as pearl white, two-tone silver, champagne gold and wine red to appeal to home consumers. They boast of several features including i-feel for comfort where one sits, six filters for ultra-pure air, turbo operation, long distance piping, auto mode, dry mode, sleep mode, blow/self clean function, elegant remote control, rust-resistant construction, self diagnosis, scroll compressor, acoustic insulation on compressor and R410A ecofriendly refrigerant, amongst others.

The Company also plans to promote its inverter line-up of residential split airconditioners for the benefit of energy conscious customers. These units are highly intelligent as they know when, where and how much to cool. The inverter compressor in these units varies its speed depending on the ambient load, resulting in perfect cooling apart from significant energy savings. In addition to one-on-one inverter airconditioners, Blue Star also offers a break-through product called the Multi-Inverter Split AC, wherein an inverter-technology based outdoor unit can be coupled to three indoor units to aircondition upto three rooms simultaneously. This product range appeals to consumers who want to aircondition their entire house and at the same time would like to dramatically save on power bills. This futuristic range helps in reducing the number of outdoor units from three to just one unit, thereby maintaining the look of the façade of the building. The indoor units also have a state-of-the art sleek design with a diamond sparkle to appeal to interior designers and architects.

The range of window airconditioners has also been enhanced with addition of models specifically for the north India market. The Company plans to invest about Rs 30 crores on new product development and R&D initiatives, and has added 50 more people to its existing R&D team of 125 people, in order to continue to develop modern and sophisticated products competing with the best in the world.

Distribution

As regards to distribution, in 2013, Blue Star's room airconditioners will be available in 2500 outlets in around 500 locations spread across the length and breadth of the country, vide exclusive and multi-brand sales and service airconditioning dealers, retail showrooms and modern trade. The Company has also built up a strong installation and service franchise network to support the retailers.

Advertising and Brand Communication

In terms of advertising and brand communication, the Company has plans to invest about Rs 25 crores in the forthcoming summer season with a new set of TV commercials supported by ads in mainline dailies, cinema and hoardings. It also intends to enhance its digital marketing efforts on the internet including social media, considering that about 45% of its buyers are between 26 to 35 years. Moreover, about 98% of Blue Star buyers belong to the highest socio-economic category (SEC A) who are active on the internet. The differentiated value proposition to the residential audience will continue to be 'Get office-like cooling at home' which leverages Blue Star's expertise in cooling offices and communicates that one can get the very same expertise at home.

Blue Star has also been recognized as a 'Consumer Superbrand' by Superbrands, a global agency which selects strong and powerful brands from across the world. It acknowledges that the brands to win this laurel are those with high product integrity and brand development, thus succeeding to win consumer trust. Blue Star was recognized as a 'Business Superbrand' last year and this year, has been awarded the 'Consumer Superbrand' status. The Company will use this accolade in its mass media communication during the forthcoming summer season.

The Company recently undertook an extensive research in Tier 3 and 4 towns to understand its brand saliency in these markets, and given the high aspirations of consumers in non-metros and the recent success of the Company in these markets, the Company intends to enhance advertising and brand promotional activities in these towns.

Speaking to the Press at a conference held at Hyderabad, B Thiagarajan, President, Airconditioning & Refrigeration Products Group, Blue Star Limited said, "The room airconditioners market in India declined by about 5% due to a soft and erratic summer coupled with pessimistic consumer sentiments during 2012. While these adverse conditions also impacted Blue Star's room airconditioners business, it still garnered 6% growth in value terms, and held on to its market share. While most players in this business resorted to cutting prices putting their margins under pressure, we maintained our prices and premium image focusing on profitability with an enhanced range of products. We find that Blue Star is a strong contender in the consideration set of the discerning consumer, and several home consumers have instilled their faith in us and believe that we offer contemporary and modern products due to our airconditioning pedigree. Considering our impressive new energy-efficient product range, our aggressive distribution strategy and our commitment to continue to make investments in enhancing brand equity, I am confident that we will continue to perform well in the residential segment."


For additional information, please contact: B Thiagarajan, President, Airconditioning & Refrigeration Products Group, Blue Star Limited, Bandbox House, 254D, Dr Annie Besant Road, Worli, Mumbai – 400 030 email: bthiagarajan@bluestarindia.com Telephone: 09821078098.

Blue Star 9-month Net Profit at Rs 33.18 crores

Place: Mumbai
Date: January 18, 2013

Financial Performance for Q3FY13

  • Central airconditioning and commercial refrigeration major Blue Star Limited reported Total Operating Income of Rs 598.80 crores for the quarter ended December 31, 2012, as compared to Rs 584.01 crores in Q3FY12, representing an increase of 3%.
  • Operating Profit (PBIDT excluding Other Income) for the quarter increased to Rs 25.43 crores from a loss of Rs 8.81 crores in Q3FY12.
  • Financial Expenses for the quarter decreased by 38% to Rs 13.72 crores from Rs 22.10 crores in Q3FY12.
  • Provision for taxation for the quarter was nil, same as that of Q3FY12. Although the Company is required to make a provision for MAT, due to the set-off of the carried forward business loss of the previous year, there is no taxable income for the year and hence no provision was required for tax.
  • Consequently, Net Profit grew to Rs 5.37 crores as compared to a Net Loss of Rs 32.76 crores during the same quarter of the previous year.
  • Earnings per share for the quarter (Face value of Rs 2.00) stood at Rs 0.60 vis-à-vis a negative of Rs 3.64 in the corresponding quarter of the previous year.
  • The Electro Mechanical Projects and Packaged Airconditioning Systems business, accounting for 66% of the total revenues in the quarter, increased 8% while segment results increased to Rs 22.94 crores as compared to a loss of Rs 15.18 crores during Q3FY12, mainly due to better gross margins and focus on business from more profitable segments.
  • Cooling Products revenue registered a decline of 5% in the quarter, while segment results declined by 47% to Rs 3.78 crores. Q3 is generally a lean season for this business. However, due to a change in the Bureau of Energy Efficiency norms which came into effect from Jan 1, 2013, there was a significant off-take in primary sales in Q3FY12, which was not applicable in the quarter during review. Further, the erosion of margins in sourcing and selling of installation accessories such as copper pipes and insulation material, which had adversely affected this segment in the previous quarter, had some impact in this quarter as well.
  • The Professional Electronics and Industrial Systems business revenues reduced by 9%, while segment results declined 18% to Rs 9.56 crores, owing to the unfavourable business climate and declining demand in the capital goods sector.
  • Carry Forward Order Book as on December 31, 2012 reduced to Rs 1628 crores compared to Rs 2160 crores as at December 31, 2011, due to slower new order bookings as well as a concerted effort to improve the quality of new orders won.

Financial Performance for the nine-month period ended December 31, 2012 (Cumulative Q3FY13)

  • For the nine-month period ended December 31, 2012, the Company reported a Total Operating Income of Rs 1908.82 crores, as compared to Rs 1887.23 crores over the same period in the previous year representing a marginal growth of 1%.
  • Operating Profit (PBIDT excluding Other Income) increased 194% to Rs 79.11 crores as compared to Rs 26.90 crores during the same period last year.
  • Net Profit grew to Rs 33.18 crores as compared to a Net Loss of Rs 43.77 crores during the same period of the previous year.

Outlook

While the external market environment continues to be challenging, businesses such packaged airconditioning, room airconditioners, refrigeration products and after-sales service have a positive outlook. However, the electro mechanical projects business is likely to continue to be negatively impacted for the next couple of quarters, mainly due to the slowdown in the commercial construction sector. The Company will focus on leveraging on the opportunities available in certain segments as well as in improving profitability over the next few quarters.


For additional information, please contact: B Thiagarajan, President, Airconditioning & Refrigeration Products Group, Blue Star Limited, Bandbox House, 254D, Dr Annie Besant Road, Worli, Mumbai – 400 030 email: bthiagarajan@bluestarindia.com Telephone: 09821078098.

Blue Star H1 Net Profit at Rs. 27.81 cr.

Place: Mumbai
Date: October 19, 2012

Financial Performance for Q2FY13

  • Central airconditioning and commercial refrigeration major Blue Star Limited reported Total Operating Income of Rs 578.60 crores for the quarter ended September 30, 2012, as compared to Rs 599.19 crores in Q2FY12, representing a decrease of 3%.
  • Operating Profit (PBIDT excluding Other Income) for the quarter increased 152% to Rs 20.15 crores from Rs 8.02 crores in Q2FY12.
  • Financial Expenses for the quarter decreased significantly to Rs 11.20 crores from Rs 30.56 crores in Q2FY12.
  • Provision for taxation for the quarter is nil as compared to reversal of Rs 3.17 crores during the same period last year. Although the Company is required to make a provision for MAT, due to the set-off of the carried forward business loss of the previous year, there is no taxable income for the year and hence no provision is required for tax.
  • Consequently, Net Profit grew to Rs. 7.27 cr in Q2FY13 from a loss of Rs 20.80 crores in Q2FY12.
  • Earnings per share for the quarter (Face value of Rs 2.00) stood at Rs 0.81 vis-à-vis a negative of Rs 2.31 in the corresponding quarter of the previous year.
  • The revenues of Electro Mechanical Projects and Packaged Airconditioning Systems business, accounting for 65% of the total revenues in the quarter decreased by 2%, while segment results increased to Rs 26.42 crores as compared to a loss of Rs 3.41 crores during Q2FY12, due to the focus on: (1) business from more profitable segments and at better gross margins and (2) the benefit of lower cost increases in ongoing projects in the current year.
  • Cooling Products revenue registered a modest increase of 7% in the quarter, while segment results declined by 7% to Rs 7.91 crores. The decline was mainly due to increase in input costs owing to foreign exchange rates and erosion of margins in sourcing and selling of installation accessories such as copper pipes.
  • The Professional Electronics and Industrial Systems business revenues reduced significantly by 43%, while segment results declined 85% to Rs 2.63 crores, owing to the unfavourable industrial projects business and declining demand in capital goods sector, and delay in finalization of a few significant new orders.
  • Carry Forward Order Book as on September 30, 2012 reduced to Rs 1678.6 crores compared to Rs 2162 crores as at September 30, 2011, due to slower new order bookings as well as a concerted effort to improve the quality of new order bookings both in terms of margins and capital employed.

Financial Performance for the half-year ended September 30, 2012 (H1FY13)

  • For the half-year ended September 30, 2012, the Company reported a Total Operating Income of Rs 1310.02 crores, as compared to Rs 1303.22 crores over the same period in the previous year, a flat growth of 0.5%.
  • Operating Profit (PBIDT excluding Other Income) increased by 50.37% from Rs. 35.70 crores to Rs 53.68 crores.
  • There was a Net Profit of Rs 27.81 crores in the half-year period as compared to a Net Loss of Rs 11.02 crores in the corresponding period last year.

Outlook

After having returned to profitability in the last two consecutive quarters, the Company intends to build on the gains and consolidate its position. The external market environment continues to be challenging and the focus will be to improve operational efficiency and bottomline.


For additional information, please contact: B Thiagarajan, President, Airconditioning & Refrigeration Products Group, Blue Star Limited, Bandbox House, 254D, Dr Annie Besant Road, Worli, Mumbai – 400 030 email: bthiagarajan@bluestarindia.com Telephone: 09821078098.

Blue Star Q1 Net Profit up 110%

Place: Mumbai
Date: July 31, 2012

Financial Performance for Q1FY13

  • Central airconditioning and commercial refrigeration major Blue Star Limited reported Total Operating Income of Rs 731.42 crores for the quarter ended June 30, 2012, as compared to Rs 704.03 crores in Q1FY12, representing an increase of 4%.
  • Operating Profit (PBIDT excluding Other Income) for the quarter increased 22% to Rs 33.53 crores from Rs 27.53 crores in Q1FY12.
  • During the quarter, Other Income grew to Rs 7.01 crores from Rs 0.73 crores during the same period last year. This was mainly on account of income tax refunds and foreign exchange gains.
  • Financial Expenses for the quarter increased to Rs 12.53 crores from Rs 8.17 crores in Q1FY12, due to higher interest costs and hedging/foreign exchange losses.
  • Provision for taxation for the quarter was nil compared to Rs 3.17 crores during the same period last year. Although the Company is required to make a provision for MAT, due to the set-off of the carried forward business loss of the previous year, there is no taxable income for the year and hence no provision was required for tax.
  • Consequently, Net Profit grew 110% from Rs 9.79 crores in Q1FY12 to Rs 20.54 crores during the quarter.
  • Earnings per share for the quarter (Face value of Rs 2.00) stood at Rs 2.28 vis-à-vis Rs 1.09 in the corresponding quarter of the previous year.
  • The Electro Mechanical Projects and Packaged Airconditioning Systems business, accounting for 50% of the total revenues in the quarter, increased 7% while segment results increased to Rs 12.37 crores as compared to a loss of Rs 8.87 crores during Q1FY12, mainly due to better gross margin.
  • Cooling Products revenue registered a marginal increase of 2% in the quarter, while segment results declined by 15% to Rs 37.55 crores. A relatively mild summer across the country in April and May, coupled with cost pressures due to the appreciation of the dollar, resulted in the decline.
  • The Professional Electronics and Industrial Systems business revenues reduced by 8%, while segment results declined 10% to Rs 7.18 crores, owing to the unfavourable business climate.
  • Carry Forward Order Book as on June 30, 2012 reduced to Rs 1848 crores compared to Rs 2019 crores as at June 30, 2011, due to slower new order bookings as well as a concerted effort to improve the quality of new orders won.

Outlook

The corrective steps taken by the Company in the previous year including price increases, value engineering and cost control have begun to show results with the Company showing significant profit improvement in Q1. The Company hopes to sustain the turnaround for the rest of the year in spite of the continuing economic slowdown, high inflation and weak rupee.


For additional information, please contact: B Thiagarajan, President, Airconditioning & Refrigeration Products Group, Blue Star Limited, Bandbox House, 254D, Dr Annie Besant Road, Worli, Mumbai – 400 030 email: bthiagarajan@bluestarindia.com Telephone: 09821078098.

Blue Star Total Income declines 6% in FY12

Place: Mumbai
Date: May 16, 2012

Standalone Financial Performance for 2011-12

  • Blue Star Limited reported Total Operating Income of Rs 2700.28 crores for the year ended March 31, 2012, compared to Rs 2858.92 crores earned last year, representing a decline of 6%.
  • Operating loss (PBIDT excluding Other Non-Operating Income) for the year stood at Rs 11.06 crores as compared to the Operating Profit of Rs 248.58 crores in FY11. The unfavourable economic climate, cost overruns in electro mechanical projects, liquidity crunch and higher input costs were responsible for the significant decline in profitability.
  • Financial Expenses for the year increased from Rs 24.36 crores to Rs 70.25 crores due to higher interest costs and foreign exchange losses on account of strengthening of the dollar.
  • Consequently, there was a Net Loss of Rs 89.15 crores as compared to a Net Profit of Rs 155.00 crores last year.
  • The Electro Mechanical projects and Packaged Airconditioners business accounting for 58% of the Company's total revenues, declined 17% during the year, while segment results fell sharply to a loss of Rs 85.09 crores as compared to a profit of Rs 175.87 crores in FY11. Cooling Products revenue registered an increase of 18% in the year. However, Segment results declined by 3%. The revenues of the Professional Electronics and Industrial Systems business grew marginally by 3%, while segment results declined 4%.
  • Carry Forward Order Book as on March 31, 2012 declined marginally by 2% to Rs 1917 crores compared to the order book of Rs 1960 crores as at March 31, 2011.

Dividend

  • The Board of Directors have proposed a dividend of Rs 1.00 per equity share (Face value of Rs 2.00).

Consolidated Financial Performance for 2011-12

  • On a consolidated basis, Total Operating Income stood at Rs 2819.86 crores for the year ended March 31, 2012. The consolidated financial results include the results of the Company's wholly owned subsidiary Blue Star Electro Mechanical Limited, joint ventures namely, Blue Star M& E Engineering SDN BHD, Malaysia, Blue Star Qatar (WLL) and Blue Star Design & Engineering Limited and the share of profit in the associate company Blue Star Infotech Limited.
  • Operating loss (PBIDT excluding Other Non-Operating Income) for the year was Rs 22.72 crores.
  • Net Loss stood at Rs 105.10 crores for the year as compared to the Net Profit of Rs 160.96 crores registered last year.

Performance for Q4FY12

  • Total Operating Income at Rs 813.60 crores declined by 11% over the same period last year.
  • Operating loss for the quarter was Rs 37.40 crores compared to PBDIT of Rs 97.45 crores earned in Q4FY11.
  • Net Loss was for the quarter was Rs 45.37 crores as compared to Net Profit of Rs 56.85 crores registered during the same period last year.

Segment Performance for 2011-12

The Electro Mechanical Projects business in Segment 1 was severely impacted due to a number of adverse developments. Many projects had slowed down due to tight liquidity conditions leading to undue delay in collections from customers. This resulted in poor cash flow in the business, higher borrowings and increased interest cost. Due to inflationary conditions the Company reviewed the majority of projects under execution to assess actual costs incurred and expected costs to completion. This revealed substantial cost over-runs and erosion of gross margin on most of the fixed price contracts. In accordance with Accounting Standard AS7, the cost increase was absorbed in the accounts for 2011-12 resulting in losses and reduced revenues.

In the Cooling Products segment, while top-line growth was favourable, margins were under pressure due to higher input costs and significant increases in fuel and freight costs. Consequently, the segment result was marginally lower. The Professional Electronics and Industrial Systems business was also affected by the general business slowdown.

Overall Segment Results remained positive in spite of the loss in Electro Mechanical Projects and Packaged Airconditioning Systems. But heavy interest costs and foreign exchange losses along with unallocable expenditure resulted in the disappointing Loss Before Tax.

Outlook

The Company has taken vigorous steps to correct the decline in profitability. Strict controls have been implemented to improve the quality of new orders. There is a multi-pronged drive to improve profit margins through price increases, value engineering and cost control. Moreover, a focus on working capital management and cash flow will keep borrowings and interest cost under control. There is already a reduction in borrowings by about Rs 250 crores from the peak level of last September.

Though the economic environment remains challenging and uncertain, the Company is confident of returning to modest profitability in 2012-13. The results should become increasingly evident as the year progresses. And if economic growth revives, it can only be of additional help in getting the Company back to good health.


For additional information, please contact: B Thiagarajan, President, Airconditioning & Refrigeration Products Group, Blue Star Limited, Bandbox House, 254D, Dr Annie Besant Road, Worli, Mumbai – 400 030 email: bthiagarajan@bluestarindia.com Telephone: 09821078098.

Blue Star Q3 Total Operating Income at Rs 589 crores

Place: Mumbai
Date: January 27, 2012

Financial Performance for the quarter ended December 31, 2011 (Q3FY12)

  • Blue Star Limited reported Total Operating Income of Rs 589.69 crores for the quarter ended December 31, 2011, as compared to Rs 613.41 crores in Q3FY11, representing a decline of 4%.
  • Operating loss (PBIDT excluding Other Income) for the quarter was Rs 3.14 crores compared to Operating profit of Rs 48.30 crores during the same period last year. Unprecedented input cost increases have impacted all business segments of the Company. As seen in the earlier quarters of this financial year, the Electro Mechanical Projects business has been particularly impacted largely due to the fixed price nature of the contracts. Projects in the Building Electricals segment, long gestation infrastructure projects and a few projects executed for Builders and General Contractors have been severely impacted.
  • Financial expenses during the quarter increased from Rs 8.92 crores to Rs 22.10 crores. This was due to higher interest costs and unrealized foreign exchange losses on account of strengthening of the dollar.
  • Consequently, there was a Net Loss of Rs 32.76 crores compared to Net Profit after tax of Rs 22.36 crores in Q3FY11.
  • The Electro Mechanical Projects and Packaged Airconditioning business accounting for 63% of the total revenues in the quarter, declined by 15% while segment results fell sharply to a loss of Rs 15.18 crores as compared to a profit of Rs 29.13 crores during Q3FY11.
  • Cooling Products revenue registered an increase of 28% in the quarter. However, Segment results declined by 30% to a profit of Rs 7.15 crores from Rs 10.22 crores, due to cost pressure.
  • The revenues of the Professional Electronics and Industrial Systems business increased by 16%, while Segment results were flat at Rs 11.68 crores compared to Rs 11.66 crores in Q3FY11.
  • Carry Forward Order Book as on December 31, 2011 increased to Rs 2160 crore compared to Rs 2072 crore as at December 31, 2010, representing a growth of 4%.

Financial Performance for the 9-month period ended December 31, 2011

  • For the 9-month period ended December 31, 2011, the Company reported Total Operating Income of Rs 1899.02 crores, as compared to Rs 1973 crores over the same period in the previous year, a decline of 4%. Other operating income declined from Rs 24.58 crores to Rs 13.79 crores, during the same period.
  • Operating Profit (PBIDT excluding Other Income) declined by 77% from 174.36 crores to Rs 38.69 crores.
  • There was a Net Loss of Rs 43.77 crores in the 9-month period as compared to a Net Profit of Rs 98.15 crores in the corresponding period last year.

Outlook

As communicated earlier, the Company expects the next few quarters to be challenging on account of the uncertain economic environment. Segment 1 margins will continue to be at current depressed levels, though improving progressively in FY13, on account of raw material prices holding at higher levels and the Company needing to execute its largely fixed-price order book. The Company will stay focused on reducing the capital employed in the segment and improving the quality of new orders with respect to margins and payment terms.

Margin pressure continues to be a concern in Segment 2 as well, and the Company has initiated several actions including price increases as well as value engineering and product cost reduction efforts that should yield results in early FY13. At an overall level, the Company will exercise prudent financial management measures in order to contain the decline in profitability.

The Company has been through several challenging periods in its seven-decade history and has been able to adapt well to the circumstances. The underlying demand for its products and services driven by increasing urbanization, rising incomes and infrastructure investment is robust and with its market leadership position, the Company is well placed to capture the tremendous opportunities in the near future. The Company will endeavour to return to the growth path in the next financial year, and is focused on returning to profitability on a stand-alone quarterly basis from Q1FY13.


For additional information, please contact: B Thiagarajan, President, Airconditioning & Refrigeration Products Group, Blue Star Limited, Bandbox House, 254D, Dr Annie Besant Road, Worli, Mumbai – 400 030 email: bthiagarajan@bluestarindia.com Telephone: 09821078098.

Blue Star to aggressively target the residential segment.
Launches stylish room airconditioners with enhanced energy efficiency.

Place: Kolkata
Date: January 25, 2012

Airconditioning and commercial refrigeration major, Blue Star Limited, has announced the launch of a new range of contemporary and stylish room airconditioners for the residential segment which will be available in a large number of retail channels across the country. These airconditioners, apart from modern features, offer higher energy efficiency resulting in significant power savings.

Blue Star is India's largest central airconditioning company with an experience of over six decades in providing expert cooling solutions. Blue Star has been selling room airconditioners vide its sales and service dealers mainly catering to the corporate and commercial segment such as offices, restaurants, showrooms, boutiques and ATMs. Over the last few years, the Company has witnessed significant demand from the residential segment. Despite the fact that Blue Star room airconditioners were not available in retail channels, a considerable amount of Blue Star's sales came from the residential segment, mainly from consumers who believe that a specialist is better than a generalist and a conviction that if Blue Star is a leader in cooling large spaces, its room airconditioners must be good.

Considering this trend, the Company forayed into the residential segment last year, and made significant changes to its marketing mix including a product line-up to appeal to the residential segment, distribution through home appliance retail outlets and enhanced advertising budgets. This foray met with resounding success and Blue Star's room airconditioners sales grew considerably despite a decline in sales in the overall room airconditioners industry last year.

Encouraged by its success in 2011, the Company plans to continue to aggressively target the residential segment in 2012.

New line-up of energy-efficient products

On the product front, Blue Star has launched an impressive new range of room airconditioners which adhere to the new energy standards prescribed by the Bureau of Energy Efficiency (BEE). With effect from January 2012, BEE has upgraded the energy standards of split airconditioners to a higher level in line with the Energy Conservation programme. All the star-rated split units this year will have a higher Energy Efficiency Ratio (EER) as compared to the same star units last year, translating to savings in power bills. Further, within the range of EER specified for each star-rating, Blue Star has opted for a higher EER within each band, in order to maximize energy efficiency.

Apart from being energy efficient, the new range of split airconditioners have a new contemporary and stylish look with multi-colour options like pearl white, two-tone silver, champagne gold and wine red to appeal to home consumers. They boast of several features including i-feel for comfort where one sits, six filters for ultra-pure air, turbo operation, long distance piping, auto mode, dry mode, sleep mode, blow/self clean function, elegant remote control, rust-resistant construction, self diagnosis, scroll compressor, acoustic insulation on compressor and R410A eco-friendly refrigerant, amongst others. The range of window airconditioners has also been enhanced with a 4-star range, in addition to the existing 1-star, 2-star and 3-star models. The Company plans to invest about Rs 250 million on new product development and research and design initiatives.

Multi-Inverter Split AC

In the inverter range, Blue Star has launched a new break-through product called the Multi-Inverter wherein an inverter-technology based outdoor unit can be coupled to three indoor units to aircondition upto three rooms simultaneously. This product range will appeal to consumers who want to aircondition their entire house and at the same time would like to dramatically save on power bills. This futuristic range helps in reducing the number of outdoor units from three to just one unit, thereby maintaining the look of the façade of the building. The indoor units also have a state-of-the art sleek design with a diamond sparkle to appeal to interior designers and architects. This product re-emphasizes the Company's commitment to offer high-technology products to residential customers.

Distribution

A regards to distribution, Blue Star room airconditioners were available in home-appliance retail channels in 7 locations last year and the Company has increased its presence in 67 locations this year. In addition, its strong force of about 1000 exclusive and multi-brand sales and service airconditioning dealers will aggressively promote the range. The Company has also built up a strong installation and service franchise network to support the retailers.

Advertising and Brand Communication

In terms of advertising and brand communication, the Company has plans to invest about Rs 150 million in the forthcoming summer season with a new set of TV commercials supported by print ads, mainline dailies, cinema, radio, hoardings and internet. The differentiated value proposition to the residential audience has been identified as 'Get office-like cooling at home' which leverages Blue Star's expertise in cooling offices and communicates that one can get the very same expertise at home.

Speaking to the Press at a conference held in Kolkata, B Thiagarajan, President, Airconditioning & Refrigeration Products Group, Blue Star Limited said "Despite the fact that the room airconditioners market in India declined by about 15% due to a soft summer during 2011, Blue Star's room airconditioners business has been on a fast growth track and grew about 29% in 2011, with the main growth coming from the residential segment. Several home consumers have instilled their faith in us and believe that we offer contemporary and modern products due to our airconditioning pedigree. Considering our impressive new energy-efficient product range, our aggressive distribution strategy and our commitment to continue to make investments in enhancing brand equity, I am confident that we will continue to perform well in the residential segment."


For additional information, please contact: B Thiagarajan, President, Airconditioning & Refrigeration Products Group, Blue Star Limited, Bandbox House, 254D, Dr Annie Besant Road, Worli, Mumbai – 400 030 email: bthiagarajan@bluestarindia.com Telephone: 09821078098.

Blue Star to set up factory in Ahmedabad for manufacturing of refrigeration products

Place: Mumbai
Date: December 23, 2011

Central airconditioning and commercial refrigeration major, Blue Star has announced that it is in the process of setting up a factory at Changodar, Ahmedabad. Spread over 15,000 sq m, this plant will initially manufacture refrigeration products such as deep freezers, bottle coolers, milk coolers and water coolers.

Driven by the ice cream, frozen food and dairy segments, the commercial refrigeration business of Blue Star has been on the rise and considering the expected demand in the future, the Company thought it prudent to expand its manufacturing capacity for refrigeration products. Blue Star currently manufactures refrigeration products in its plant at Bharuch in Gujarat which was set up about three decades ago and this new plant at Ahmedabad will augment the current production capacity of these products significantly.

According to Mr Satish Jamdar, Managing Director, Blue Star Limited "We anticipate the refrigeration products business to be a significant growth-driver of the Company in the years to come and it was necessary to enhance the production capacity of these products. This plant is currently awaiting statutory approvals and we hope to begin manufacturing towards the end of this financial year. The Company will be making an investment of about Rs 15 crores in this plant in the current financial year."


For additional information, please contact: B Thiagarajan, President, Airconditioning & Refrigeration Products Group, Blue Star Limited, Bandbox House, 254D, Dr Annie Besant Road, Worli, Mumbai – 400 030 email: bthiagarajan@bluestarindia.com Telephone: 09821078098.

Blue Star awarded Rs 84 crore order for Bangalore Metro Rail Project Phase - 1

Place: Mumbai
Date: December 22, 2011

Central airconditioning major, Blue Star has won the order for the Environmental Control System and Building Management System for the 7 underground stations of Phase-I of Bangalore Metro Rail project, valued at Rs 84 crore. The scope of work includes design, supply, installation, testing and commissioning of chillers, pumps, air handling units, fan coil units, cooling towers, ventilation fans, motor control centre panels and building management system along with the associated work of piping, ducting, grilles and insulation, amongst others.

The Bangalore Metro Rail Corporation Limited, a joint venture of Government of India and Government of Karnataka, is a special purpose vehicle for implementation of Bangalore Metro Rail Project. This project, commonly known as Namma Metro, will weave through the bustling commercial and residential areas of Bangalore City. Phase-1 consists of double line electrified (750 v DC third rail) North-South and East–West corridor, covering a total length of 42.30 km. The East-West corridor will be 18.10 km long and the North- South corridor will be 24.20 km, with Majestic being the interchange station for the two corridors. Out of the 42.30 km., 8.82 km will be underground and the rest will be elevated.

Blue Star's expertise and competence in project execution coupled with the execution of several projects for Delhi Metro over the last few years helped the Company win this order.


For additional information, please contact: B Thiagarajan, President, Airconditioning & Refrigeration Products Group, Blue Star Limited, Bandbox House, 254D, Dr Annie Besant Road, Worli, Mumbai – 400 030 email: bthiagarajan@bluestarindia.com Telephone: 09821078098.

Blue Star Q2 Total Operating Income at Rs 604 crores

Place: Mumbai
Date: October 22, 2011

Financial Performance for the quarter ended September 30, 2011 (Q2FY12)

  • Blue Star Limited reported Total Operating Income of Rs 604.65 crores for the quarter ended September 30, 2011, as compared to Rs 694.76 crores in Q2FY11, representing a decline of 13%.
  • Operating profit (PBIDT excluding Other Income) for the quarter declined by 80% to Rs 13.62 crores. The overall economic climate continued to deteriorate during the quarter due to slower GDP growth, high inflation, interest rate increases and weakening of the rupee. All the three business segments were adversely impacted. The contracting business was affected the most as input costs and general operating expenses increased resulting in lower margins in various long-gestation projects.
  • Financial expenses during the quarter increased from Rs 3.28 crores to Rs 30.56 crores. This was due to higher interest costs and unrealized foreign exchange losses on account of strengthening of the dollar.
  • Consequently, there was a Net Loss of Rs 20.80 crores compared to Net Profit of Rs 38.65 crores in Q2FY11.
  • The Electro Mechanical Projects and Packaged Airconditioning business accounting for 64% of the total revenues in the quarter, declined by 19% while segment results fell sharply to a loss of Rs 3.41 crores as compared to a profit of Rs 43.37 crores during Q2FY11. Cooling Products revenue registered an increase of 11% in the quarter. However, Segment results, declined by 45% due to cost pressure. The Professional Electronics and Industrial Systems business revenues declined by 12%, while segment results increased by 2%.
  • Carry Forward Order Book as on September 30, 2011 increased to Rs 2162 crore compared to Rs 1999 crore as at September 30, 2010, representing a growth of 8%.

Financial Performance for the half-year ended September 30, 2011 (H1FY12)

  • For the half-year ended September 30, 2011, the Company reported Total Operating Income of Rs 1309.32 crores, as compared to Rs 1359.59 crores over the same period in the previous year, a decline of 4%.
  • Operating Profit (PBIDT excluding Other Income) declined by 66% from 126.06 crores to Rs 41.82 crores.
  • There was a Net Loss of Rs 11.01 crores in the half-year period as compared to a Net Profit of Rs 75.79 crores in the corresponding period last year.

Outlook

Order inflow continues to be slow from the commercial construction industry. The business slowdown is expected to continue for some time. Revenues as well as profitability will be under pressure. Decrease in commodity prices such as copper is expected to help to cushion the erosion of margins. The Company plans to focus on cash flow, management of working capital and tight cost control to tide over the current difficult phase.


For additional information, please contact: B Thiagarajan, President, Airconditioning & Refrigeration Products Group, Blue Star Limited, Bandbox House, 254D, Dr Annie Besant Road, Worli, Mumbai – 400 030 email: bthiagarajan@bluestarindia.com Telephone: 09821078098.

Blue Star Q1 Total Operating Income up 6%.

Place: Mumbai
Date: July 29, 2011

Financial Performance for Q1FY12

  • Central airconditioning and commercial refrigeration major Blue Star Limited reported Total Operating Income of Rs 704.68 crore for the quarter ended June 30, 2011, as compared to Rs 664.83 crore in Q1FY11, representing an increase of 6%.
  • Operating profit (PBIDT excluding Other Income) for the quarter declined by 55% to Rs 27.59 crore. The contracting environment in the country is becoming increasingly challenging as labour, raw material input costs and general operating expenses increases continue unabated. The Company has responded by sharpening oversight on project costs and examining the project profitability more critically, largely in the Electro Mechanical Projects & Packaged Airconditioning Segment. As a result, the top and bottom lines from contracting activities have been and will continue to be under pressure for the immediate future.
  • Net Profit was lower by 74% at Rs 9.79 crore compared to Rs 37.15 crore in Q1FY11.
  • Earnings per share for the quarter (Face value of Rs 2.00) stood at Rs 1.09 vis-à-vis Rs 4.13 in the corresponding quarter of the previous year.
  • The Electro Mechanical Projects and Packaged Airconditioning business accounting for 49% of the total revenues in the quarter, declined 9% while segment results fell sharply to a loss of Rs 8.87 crore as compared to a profit of Rs 33.57 crore during Q1FY11. Cooling Products revenue registered a healthy increase of 30% in the quarter, driven mainly by higher room airconditioner sales. Segment results, increased by 24%. The Professional Electronics and Industrial Systems business revenues increased marginally by 3%, but segment results registered a substantial increase of 46%.
  • Carry Forward Order Book as on June 30, 2011 increased to Rs 2099 crore compared to Rs 1976 crore as at June 30, 2010, representing a growth of 6%.

Outlook

After showing some signs of revival, the overall investment climate has significantly deteriorated in the past year. The Company expects the next few quarters to be a challenging period for the Electro Mechanical Projects business. While, the market continues to be sluggish in terms of new orders and project execution times, the Company's focus will continue to be on managing the capital employed in this business. The other two segments namely the Cooling Products business and the Professional Electronics and Industrial Systems business performed well during the quarter and this trend is likely to continue in the coming quarters as well.


For additional information, please contact: B Thiagarajan, President, Airconditioning & Refrigeration Products Group, Blue Star Limited, Bandbox House, 254D, Dr Annie Besant Road, Worli, Mumbai – 400 030 email: bthiagarajan@bluestarindia.com Telephone: 09821078098.

Blue Star Total Income up 14% in FY11 Dividend of 350% recommended

Place: Mumbai
Date: May 24, 2011.

Standalone Financial Performance for 2010-11

  • Blue Star Limited reported Total Operating Income of Rs. 2888.57 crore for the year ended March 31, 2011, compared to Rs. 2537.23 crore earned last year, representing a growth of 14%.
  • Operating profit (PBIDT excluding Other Non-Operating Income) for the year at Rs. 278.33 crore declined by 7% mainly on account of inflationary increase in input costs and higher operating expenses.
  • Profit Before Tax (excluding exceptional items) declined 14% to Rs. 226.57 crore.
  • Net Profit declined significantly to Rs. 155 crore compared to Rs. 211.49 crore in FY10, owing to higher tax provision. Moreover, FY10 had an exceptional earning of Rs. 13.97 crore while the exceptional income in FY11 was only Rs. 0.43 crore.
  • Earnings per share for FY11 (Face value of Rs 2.00) stood at Rs. 17.23 vis-à-vis Rs. 23.52 in the previous year.
  • The Electro Mechanical projects and Packaged Airconditioners business accounting for 65% of the total revenues, grew a modest 4% during the year, while segment results declined by 18%. Billings and cash flow were adversely impacted due to slowdown in the completion of large projects. Cooling Products revenue registered a healthy increase of 36% in the year driven by enhanced demand for room airconditioners and refrigeration products. However, Segment results grew only 12%, due to a significant rise in input costs. The Professional Electronics and Industrial Systems business continued to contribute to the profitability of the Company. While the segment revenues grew 40%, segment results grew 20%.
  • Carry Forward Order Book as on March 31, 2011 grew by 16% to Rs. 1968 crore compared to the order book of Rs. 1699 crore as at March 31, 2010.

Dividend

  • The Board of Directors have proposed a dividend of Rs. 7.00 per equity share (Face value of Rs. 2.00), as compared to Rs. 8.00 last year.

Consolidated Financial Performance for 2010-11

  • On a consolidated basis, Total Operating Income stood at Rs. 3008.24 crore for the year ended March 31, 2011. The consolidated financial results include the results of the Company's wholly owned subsidiary Blue Star Electro Mechanical Limited, joint ventures namely, Blue Star M& E Engineering SDN BHD, Malaysia, Blue Star Qatar (WLL) and Blue Star Design & Engineering Limited and the share of profit in the associate company Blue Star Infotech Limited.
  • Operating profit (PBIDT excluding Other Non-Operating Income) for the year was Rs. 286.58 crore.
  • Profit Before Tax (excluding exceptional items) stood at Rs. 230.70 crore, while Net Profit was Rs. 160.97 crore.

Performance for Q4FY11

  • Total Operating Income at Rs. 915.56 crore registered a growth of 6% over the same period last year.
  • Operating profit for the quarter at Rs. 102.64 crore declined by 8% compared to PBDIT of Rs. 111.84 crore earned in Q4FY10.
  • Net Profit at Rs. 56.85 showed a 27% decline due to higher interest and tax expenses.

Outlook

Ashok M Advani, Executive Chairman, says "The general economic outlook for the Indian Economy for FY12 indicates a slower rate of GDP growth than FY11. Inflation remains stubbornly high which will continue to squeeze margins. Rising interest rates and slow down in cash flow will also affect business growth. We are tackling these challenges by tough cost control measures and a focus on cash collections with control of working capital."



For additional information, please contact: B Thiagarajan, President, Airconditioning & Refrigeration Products Group, Blue Star Limited, Bandbox House, 254D, Dr Annie Besant Road, Worli, Mumbai – 400 030 email: bthiagarajan@bluestarindia.com Telephone: 66544000.

Blue Star launches new range of VRF Airconditioning Systems with Inverter technology

Place: Chennai
Date: February 21, 2011.

Central airconditioning and commercial refrigeration major, Blue Star, has announced the launch of a new range of eco-friendly and energy efficient Variable Refrigerant Flow (VRF) Airconditioning Systems using the Inverter technology.

A VRF system is a sophisticated centralized airconditioning system that cools large multi-zone spaces with varying heating and cooling needs through intelligent controls. This results in tremendous power savings as the system is smart enough to know where to cool, and when. Many modern establishments having multi zones such as sophisticated offices, hotels, premium residential properties and hospitals are opting for VRF Airconditioning systems because of the flexibility of control and significantly lower electricity bills.

In VRF Airconditioning Systems, there are two popular technologies based on the compressor, namely Digital Scroll and Inverter. Blue Star has been offering VRF Airconditioning Systems with Digital Scroll technology since 2008. However, the Company realized that it is not addressing the needs of customers who prefer the Inverter technology. Considering that the VRF AC system segment is on a fast-growth path, the Company thought it prudent to launch VRF Systems with Inverter technology in addition to Digital Scrolls in order to address the entire universe of customers. Thus, with this new range of inverter-based systems, the Company will be able to offer both the technologies to its customers.

The new range of Inverter-based VRF Airconditioning Systems is being offered in partnership with Gree, China. Gree is China's leading airconditioning designer and manufacturer and has over 1000 installations of its VRF Inverter Airconditioning systems across the world. The units being offered are currently part of the latest fourth generation Inverter technology.

The new range being launched can support a wide range of 70 indoor units with up to 500 m of refrigerant piping, amongst the highest in its class. These units can operate in a wide range of 7oC to 48oC and offer both cooling and heating options. It boasts of intelligent microprocessor-based controllers at multi levels – an all encompassing centralized PC-controlled system for the entire installation; zone-wise control and individual unit control through the respective remotes. It incorporates the eco-friendly R410A refrigerant and offers tremendous energy savings thanks to its capacity variation in 1% steps from 10 to 100% of rating.

According to Mr B Thiagarajan, President, Airconditioning & Refrigeration Products Group, Blue Star Limited, “Blue Star is a market leader in the central airconditioning segment catering to both corporate as well as commercial requirements. With the launch of our Inverter-based VRF Airconditioning Systems, we now have the entire spectrum of VRF systems to cater to all customer demands and are in a position to further consolidate our leadership position in the central airconditioning business.”



For additional information, please contact: B Thiagarajan, President, Airconditioning & Refrigeration Products Group, Blue Star Limited, Bandbox House, 254D, Dr Annie Besant Road, Worli, Mumbai - 400 030 email: bthiagarajan@bluestarindia.com Telephone: 09821078098.

Blue Star Q3 Total Operating Income up marginally by 4%.

Place: Mumbai
Date: January 27, 2011.

Financial Performance for the quarter ended December 31, 2010 (Q3FY11)

  • Blue Star Limited reported Total Operating Income of Rs. 606.83 crore for the quarter ended December 31, 2010, a growth of 4% over the same period last year.
  • Operating Profit (PBIDT excluding Other Income) for the quarter declined by 18% to Rs. 47.28 crore.
  • Net Profit was lower by 47% at Rs. 22.36 crore compared to Rs. 42.34 crore in the same period last year mainly because of marginal topline growth, higher operating expenses and increase in interest costs. Moreover, Q3FY10 had an exceptional earning of Rs. 8.73 crore while there was no exceptional item in Q3FY11.
  • Earnings per share for the quarter (Face value of Rs. 2.00) stood at Rs. 2.49 vis-à-vis Rs. 4.71 in the corresponding quarter of the previous year.
  • In the Electro Mechanical Projects and Packaged Airconditioning segment, revenues declined by 5% in the quarter, and results by 41%. Cooling Products revenue registered a healthy increase of 35% in the quarter, driven mainly by higher room airconditioner sales. Segment results, increased by 23%. The Professional Electronics and Industrial Systems business revenues grew by 29%, while segment results registered a significant increase of 33%.
  • Carry Forward Order Book as on December 31, 2010 increased to Rs. 2073 crore compared to Rs. 1890 crore as at December 31, 2009, representing a growth of 10%.

Financial Performance for the nine-month period ended December 31, 2010

  • For the nine-month period ended December 31, 2010, the Company reported Total Operating Income of Rs. 1973.00 crore, as compared to Rs. 1674.71 crore over the same period in the previous year, representing growth of 18%.
  • Operating Profit (PBIDT excluding Other Income) declined marginally to Rs. 175.69 crore compared to Rs. 187.21 crore in the same period last year.
  • Net Profit at Rs. 98.15 crore was lower by 26% compared to Rs. 132.95 crore in the same period last year.

Outlook

Ashok M. Advani, Executive Chairman, says, “After 2 quarters of reasonable revenue growth, the Q3 slowdown is somewhat unexpected, largely due to sluggish progress on airconditioning projects and the slump in telecom airconditioning. This has impacted profits and cash flow to some extent. Looking ahead to the main summer season, the picture looks much better. Sales of airconditioners and refrigeration products have been healthy and continue to show robust growth prospects. The chief areas of concern are rising input costs due to high inflation of key raw materials which keep profit margins under pressure.”



For additional information, please contact: B Thiagarajan, President, Airconditioning & Refrigeration Products Group, Blue Star Limited, Bandbox House, 254D, Dr Annie Besant Road, Worli, Mumbai - 400 030 email: bthiagarajan@bluestarindia.com Telephone: 66544000.

Blue Star launches stylish room airconditioners for the residential segment

Place: Chennai
Date: January 18, 2011.

Airconditioning and commercial refrigeration major, Blue Star, has announced its foray into the residential segment from the forthcoming summer season with a wide range of aesthetically appealing and modern room airconditioners which will be available in a large number of retail channels across the country.

Blue Star is India’s largest central airconditioning company with an experience of over six decades in providing expert cooling solutions. Blue Star has been selling room airconditioners vide its 700-odd sales and service dealers mainly catering to the corporate and commercial segment such as offices, restaurants, showrooms, boutiques and ATMs.

Over the last couple of years, the Company has witnessed a significant demand from the residential segment given the higher disposable income and the growing middle class who are upwardly mobile and seek comfort. Despite the fact that Blue Star room airconditioners were not available in retail channels, a significant amount of Blue Star’s sales came from the residential segment, mainly from consumers who believe that a specialist is better than a generalist and a conviction that if Blue Star is a leader in cooling large spaces, its room airconditioners must be good.

Considering the above, the Company thought it prudent to aggressively target the residential segment and leverage on the expertise in cooling that Blue Star has built over the years. The Company has significantly altered its marketing mix to focus on the residential segment.

On the product front, it has launched a new contemporary and stylish range of split airconditioners to appeal to home consumers. These airconditioners will be available in a wide range of 2, 3 and 5-star ratings as per the energy labeling programme of the Bureau of Energy Efficiency (BEE). Apart from being energy efficient, these airconditioners boast of several features including i-feel for comfort where one sits, six filters for ultra-pure air, turbo operation, auto mode, dry mode, sleep mode, elegant remote control, rust-resistant construction, self diagnosis, amongst others. In addition, it has also launched a futuristic range of smart split airconditioners with inverter technology which are highly intelligent and can save on power dramatically.

As regards to the distribution, the Company is planning to offer these products through some reputed retail channels in select cities in addition to the current 700 sales-and-service dealers. It is also building up a strong installation and service franchise network to support the retailers.

In terms of advertising and brand communication, the Company has plans to double its advertising spends to about Rs 100 million in the forthcoming summer season with a new set of TV commercials supported by print ads, mainline dailies, hoardings and internet. The differentiated value proposition to the residential audience has been identified as ‘Get office-like cooling at home’ which leverages Blue Star’s expertise in cooling offices and communicates that one can get the very same expertise at home. The Company has identified this value proposition based on extensive research and an insight that most consumers believe that office cooling is superior to home.

Speaking to the Press at a conference held in Chennai, B Thiagarajan, President, Airconditioning & Refrigeration Products Group, Blue Star Limited said “The residential airconditioning market has been on a fast growth path. The penetration of airconditioners in India is set to double over the next 3 years mainly driven by the residential segment. We are confident that given our credentials and expertise in cooling coupled with the fact that our new range will appeal to the residential segment and also will be easily accessible through an extended channel, we will be in a position to significantly enhance our market share in the room airconditioners business.”



For additional information, please contact: B Thiagarajan, President, Airconditioning & Refrigeration Products Group, Blue Star Limited, Bandbox House, 254D, Dr Annie Besant Road, Worli, Mumbai - 400 030 email: bthiagarajan@bluestarindia.com Telephone: 66544000.

Blue Star Q2 Total Operating Income up 25%.

Place: Mumbai
Date: October 29, 2010.

Financial Performance for the quarter ended September 30, 2010 (Q2FY11)

  • Central airconditioning and commercial refrigeration major Blue Star Limited reported Total Operating Income of Rs. 694.75 crore for the quarter ended September 30, 2010, a growth of 25% over the same period last year.
  • Operating Profit (PBIDT excluding Other Income) for the quarter increased by 2% to Rs. 67.22 crore.
  • Net Profit was lower by 22% at Rs. 38.63 crore compared to Rs. 49.45 crore in Q2FY10 mainly because of lower gross margin, and higher interest costs and taxes.
  • Earnings per share for the quarter (Face value of Rs. 2.00) stood at Rs. 4.29 vis-à-vis Rs. 5.50 in the corresponding quarter of the previous year.
  • The Electro Mechanical Projects and Packaged Airconditioning business accounting for 69% of the total revenues in the quarter, grew 15% though segment results declined by 5%. Cooling Products revenue registered a healthy increase of 29% in the quarter, driven mainly by higher room airconditioner and deep freezer sales. Segment results, increased by 2%. The Professional Electronics and Industrial Systems business revenues grew significantly by 100%, while segment results registered a substantial increase of 63%.
  • Carry Forward Order Book as on September 30, 2010 increased to Rs. 1998 crore compared to Rs. 1815 crore as at September 30, 2009, representing a growth of 10%.

Financial Performance for the half-year ended September 30, 2010 (H1FY11)

  • For the half-year ended September 30, 2010, the Company reported Total Operating Income of Rs. 1359.58 crore, as compared to Rs. 1085.97 crore over the same period in the previous year, representing growth of 25%.
  • Operating Profit (PBIDT excluding Other Income) was virtually flat at Rs. 128.10 crore versus Rs. 129.44 crore in the same period last year.
  • Net Profit at Rs. 75.78 crore was lower by 16% compared to Rs. 90.61 crore in H1FY10.

Outlook

Ashok M. Advani, Executive Chairman, says, “The trend of positive revenue growth registered in the first quarter was sustained in this quarter as well. However, margins and profits continue to be adversely impacted. The Management is taking steps to mitigate the rise in input material costs. Given a reasonable carry-forward order book, I am hopeful that better margins and continuing sales growth will result in better profitability in the second half of the year.”



For additional information, please contact: B Thiagarajan, President, Airconditioning & Refrigeration Products Group, Blue Star Limited, Bandbox House, 254D, Dr Annie Besant Road, Worli, Mumbai - 400 030 email: bthiagarajan@bluestarindia.com Telephone: 66544000.

Blue Star bags airconditioning and plumbing orders worth Rs 130 crores for new terminal at Chhatrapati Shivaji International Airport, Mumbai

Place: Mumbai
Date: September 21, 2010.

Central airconditioning and commercial refrigeration major, Blue Star Limited has won orders worth Rs 130 crores for airconditioning and plumbing of the new integrated Terminal Building (Terminal 2) of the Chhatrapati Shivaji International Airport (CSIA), Mumbai.

CSIA is one of India’s busiest airports having recorded passenger traffic of 25.6 million in 2009-10. Currently CSIA has three domestic terminals at Santa Cruz and two international terminals at Sahar in operation.

Mumbai International Airport Pvt. Ltd. (MIAL), a joint venture between the GVK led consortium (74%) and Airports Authority of India (26%), was awarded the mandate of modernizing and upgrading Mumbai’s Chhatrapati Shivaji International Airport (CSIA) in February 2006.

MIAL is currently implementing a master plan to build an integrated terminal with a vision and framework to modernize this airport as one of the best airports in the world. After modernization, the new integrated Terminal Building referred to as T2 will be able to accommodate 40 million passengers per annum.

The works of the new integrated Terminal Building is being split into two phases. While Blue Star was awarded the contract to aircondition the South West Pier valued at Rs 15 crores a few months ago, it has now won the contract to aircondition the T2 Processor valued at Rs 93 crores. In addition, D S Gupta Construction Pvt Ltd, the company that Blue Star has recently acquired, has also been awarded the plumbing and fire fighting contracting works of this new integrated Terminal Building valued at Rs 22 crores.

Blue Star’s scope of work involves supply, installation, testing, commissioning, handover, training, maintenance and warranty of all airconditioning and ventilation services. The equipment being supplied includes air handling units, cooling towers, pumps, ventilation fans, panels, building management systems, insulation and electrical parts. Blue Star will also be handling the project execution of the plumbing works.

Blue Star’s superior project management skills and impressive track-record of on-time completion helped it win this prestigious order. The other airport projects that Blue Star has executed include Aurangabad, Ahmedabad, Trivandrum, Mangalore, Nagpur, Jaipur, Amritsar, Madurai, Dehradun, Raipur and Pune.



For additional information, please contact: B Thiagarajan, President, Airconditioning & Refrigeration Products Group, Blue Star Limited, Bandbox House, 254D, Dr Annie Besant Road, Worli, Mumbai - 400 030 email: bthiagarajan@bluestarindia.com Telephone: 09821078098.

Blue Star Board approves upfront consideration of Rs 80 crores for acquisition of D S Gupta Construction.

Place: Mumbai
Date: July 26, 2010.

Central airconditioning and commercial refrigeration major, Blue Star Limited has announced that its Board of Directors in its meeting held on July 26, 2010 have approved the consideration amount for the acquisition of plumbing and fire fighting major D S Gupta Construction.

Blue Star Electro-Mechanical Limited, a wholly-owned subsidiary of Blue Star Limited, plans to acquire D S Gupta Construction Pvt Ltd for a consideration of Rs 80 crores on a slump sale basis. The transaction is subject to customary closing conditions being met.

The turnover of D S Gupta Construction was in excess of Rs 130 crore in FY10 and the Company has a carry forward order book of around Rs 300 crore. With this acquisition, Blue Star will strengthen an important pillar in its electro mechanical projects offering for its commercial and residential real estate customers. The promoters of D S Gupta Construction will continue to manage the business for the foreseeable future.



For additional information, please contact: B Thiagarajan, President, Airconditioning & Refrigeration Products Group, Blue Star Limited, Bandbox House, 254D, Dr Annie Besant Road, Worli, Mumbai - 400 030 email: bthiagarajan@bluestarindia.com Telephone: 09821078098.

Blue Star Q1 Total Operating Income up 25%.

Place: Mumbai
Date: July 26, 2010.

Financial Performance for Q1FY11

  • Central airconditioning and commercial refrigeration major Blue Star Limited reported Total Operating Income of Rs 664.83 crore for the quarter ended June 30, 2010, as compared to Rs 531.00 crore in Q1FY10, representing an increase of 25%.
  • Operating profit (PBIDT excluding Other Income) for the quarter declined by 10% to Rs 55.87 crore. Change in the business mix and escalation in input costs were mainly responsible for the decline.
  • Net Profit was lower by 10% at Rs 37.15 crore compared to Rs 41.17 crore in Q1FY10.
  • Earnings per share for the quarter (Face value of Rs 2.00) stood at Rs 4.13 vis-à-vis Rs 4.58 in the corresponding quarter of the previous year.
  • The Electro Mechanical Projects and Packaged Airconditioning business accounting for 57% of the total revenues in the quarter, grew 19% while segment results remained flat. Cooling Products revenue registered a healthy increase of 33% in the quarter, driven mainly by higher room airconditioner sales. Segment results, increased by 6%. The Professional Electronics and Industrial Systems business revenues grew significantly by 31%, but segment results registered a decline of 23% due to change in the product mix.
  • Carry Forward Order Book as on June 30, 2010 increased to Rs 1976 crore compared to Rs 1717 crore as at June 30, 2009, representing a growth of 15%.

Outlook

Ashok M Advani, Executive Chairman, says, “Q1 financial results show strong revenue growth. However, higher input costs have adversely affected margins and profits and we are taking steps to deal with the problem. On the whole, the reasonable carry forward order position and the growing Indian economy make me cautiously optimistic about prospects for the rest of the year.”



For additional information, please contact: B Thiagarajan, President, Airconditioning & Refrigeration Products Group, Blue Star Limited, Bandbox House, 254D, Dr Annie Besant Road, Worli, Mumbai - 400 030 email: bthiagarajan@bluestarindia.com Telephone: 09821078098.

Vir S Advani elevated as Executive Director of Blue Star Limited

Place: Mumbai
Date: July 6, 2010.

Central airconditioning and commercial refrigeration major, Blue Star Limited has announced the promotion of Vir S Advani as a Wholetime Director of the Company with effect from July 1, 2010. He is designated as Executive Director.

Vir S Advani (34) holds a BS degree in Systems Engineering and a BA degree in Economics from the University of Pennsylvania. He has also completed a comprehensive Executive- Management Programme on Leadership Development at Harvard Business School.

Vir has been in the Blue Star Group for a decade, after a 2-year working stint in New York. In 2000, he joined Blue Star Infotech, and then founded Blue Star Design & Engineering in 2003, designated as its Chief Executive Officer. In 2007, he moved to Blue Star Limited as Vice President - Corporate Affairs, where he made valuable contributions in a company-wide profit improvement programme as well as in electro mechanical projects, in a short span of time.

In his new assignment, Vir will be responsible for corporate finance and accounts, and the professional electronics and industrial systems business. In addition, he will oversee the
expansion, diversification and organization development of the electro mechanical projects business and corporate strategy, including mergers and acquisitions. He will also continue to handle the investor relations function.



For additional information, please contact: B Thiagarajan, President, Airconditioning & Refrigeration Products Group, Blue Star Limited, Bandbox House, 254D, Dr Annie Besant Road, Worli, Mumbai - 400 030 email: bthiagarajan@bluestarindia.com Telephone: 09821078098.

Blue Star plans to acquire plumbing and fire fighting major, D S Gupta Construction, to strengthen its Electro Mechanical Projects business

Place: Mumbai
Date: May 31, 2010.

Central airconditioning and commercial refrigeration major, Blue Star Limited intends to strengthen its Electro Mechanical Projects business through the strategic acquisition of the businesses of D S Gupta Construction Pvt Ltd, the largest independent plumbing and fire fighting contracting company in India, as a going concern. This move will fortify an important pillar in Blue Star’s integrated Mechanical, Electrical, Plumbing & Fire fighting (MEP) contracting offering for its commercial and residential real estate customers. The promoters of D S Gupta Construction will continue to manage the business for the foreseeable future.

About D S Gupta Construction

D S Gupta Construction Pvt Ltd is headquartered in Mumbai with a turnover of Rs 130 crore in FY10. Established over two decades ago, it has pan India operations and is reputed for its quality of work and timely execution. It has a large pool of skilled manpower coupled with long standing relationships and impressive credentials in segments such as hotels, hospitals, educational institutions, commercial buildings, IT/ITES parks and residential complexes. It has also executed projects for several green buildings. Some of the notable projects executed by D S Gupta Construction include Rajiv Gandhi International Airport, Hyderabad; Kokilaben Dhirubhai Ambani Hospital, Mumbai; Wipro, Gurgaon; The Leela, Mumbai, Gurgaon & Udaipur; NSE, Mumbai; ISB, Hyderabad and UB City, Bengaluru amongst others.

Strengthening Blue Star’s MEP offering

Blue Star is India’s largest central airconditioning company with over six decades of experience. A few years ago, it recognized the trend of customers preferring an integrated MEP contractor rather than several independent vendors. In order to add electrical contracting capabilities, Blue Star acquired Naseer Electricals in early 2008 and began offering integrated MEP services after a successful integration and roll out of operations across the country. Thereafter, Blue Star has executed several integrated MEP orders.

The plumbing and fire fighting contracting skills were being developed in-house, and the Company has been executing quite a few plumbing and fire fighting contracting projects such as Delhi Airport Metro Express Line; Hotel Shangri-La, Mumbai; ESIC Hospital, Mumbai, Hotel Park Hyatt, Chennai and Sea Valley Resort, Vizag, to name a few. However, the Company thought it prudent to acquire these capabilities inorganically through a strategic acquisition, in order to leverage the growth opportunities available. With this acquisition, not only will the Company be in a position to aggressively pursue integrated MEP business, but will also bid for stand alone plumbing and fire fighting contracting projects by cross-selling its services to its existing airconditioning and electrical contracting customers. In fact, in several of the stand-alone airconditioning jobs that Blue Star has executed in the past,   D S Gupta Construction has been the plumbing and fire fighting contractor.

Closing Date

The transaction is subject to customary closing conditions being met. More details on the acquisition including the consideration will be provided after the Closing Date, which is expected to be on or before July 15, 2010.



For additional information, please contact: B Thiagarajan, President, Airconditioning & Refrigeration Products Group, Blue Star Limited, Bandbox House, 254D, Dr Annie Besant Road, Worli, Mumbai - 400 030 email: bthiagarajan@bluestarindia.com Telephone: 66544000.

Blue Star Net Profit up 17% in FY10 Dividend of 400% declared.

Place: Mumbai
Date: May 12, 2010.

Financial Performance for 2009-10

  • Central airconditioning and commercial refrigeration major Blue Star Limited reported Total Operating Income of Rs 2549.43 crore for the year ended March 31, 2010, compared to Rs 2519.43 crore in FY09.
  • Profit Before Tax (excluding exceptional items) grew 10% to Rs 262.66 crore.
  • Net Profit at Rs 211.49 crore registered an increase of 17% over last year.
  • Earnings per share for FY10 (Face value of Rs 2.00) stood at Rs 23.52 vis-à-vis Rs 20.04 in the previous year.
  • The Electro Mechanical Projects and Packaged Airconditioning business accounting for 71% of the total revenues, grew a modest 4% during the year while segment results declined by 3% owing to the business slowdown. Cooling Products revenue registered a marginal reduction of 2% in the year. Segment results, however, increased by 11% in the year, mainly due to lower input costs. The Professional Electronics and Industrial Systems business continued to contribute significantly to the profitability of the Company. While the segment revenues declined by 14%, segment results registered an increase of 19% due to a favourable product mix.
  • Carry Forward Order Book as on March 31, 2010 grew to Rs 1733 crore compared to the order book of Rs. 1339 crore as at March 31, 2009, registering a healthy growth of 29%.

Dividend

  • The Board of Directors have proposed a dividend of Rs 8.00 per equity share (Face value of Rs 2.00), as compared to Rs 7.00 last year.

Performance for Q4FY10

  • Total Operating Income at Rs 874.73 crore registered a growth of 23% over the same period last year.
  • Owing to tight control of employee and operating costs as well as lower interest expenses, Profit Before Tax (excluding exceptional items) at Rs 103.01 crore registered growth of 18% for the quarter.
  • Net Profit at Rs 78.54 crore also grew 18% during the quarter.
  • Electro Mechanical Projects and Packaged Airconditioning revenues grew 25% during the quarter. However, segment results were flat. The Cooling Products business increased by 16%, along with a 25% growth in the segment results. The Professional Electronics and Industrial Systems business grew 16% during Q4FY10, with segment results registering a substantial growth of 85% because of a more profitable business mix.

Outlook

Ashok M Advani, Executive Chairman, says “In spite of dull business conditions that led to a slow start last year, Blue Star’s quarterly profits continued to grow due to effective cost control and favourable input costs. Q4 performance showed a positive sales trend with the year ending on an encouraging note. The worst of the slowdown seems to be behind us and I am confident of better business prospects in the new financial year.”



For additional information, please contact: B Thiagarajan, President, Airconditioning & Refrigeration Products Group, Blue Star Limited, Bandbox House, 254D, Dr Annie Besant Road, Worli, Mumbai - 400 030 email: bthiagarajan@bluestarindia.com Telephone: 66544000.