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.
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.
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: firstname.lastname@example.org Telephone: 09600034725.