Press Releases
Blue Star Net Profit up 17%. Declares record 65% Dividend

Financial Performance

Central airconditioning and commercial refrigeration major Blue Star has registered a Net Profit of Rs 27.45 crores for the year ended March 31, 2002 from a Total Income of Rs 517.32 crores. Despite only marginal growth in Total Income, Net Profit grew by 17% to Rs 27.45 crores.

Earnings per share increased to Rs 13.52 from Rs 11.58

Dividend

The Directors have recommended a record dividend of Rs 6.50 per equity share. Blue Star has been paying attractive dividends every year for the last 32 years, ever since it went public in 1969.

Buy-Back Of Shares

Blue Star made an offer to buy back a maximum of 50,80,000/- equity shares of Rs 10/- each of the Company, being 25% of the total existing paid up equity share capital, at a price not exceeding Rs 75/- per equity share from the open market through the Stock Exchanges. The scheme was effective February 15, 2002, and the Company has purchased 10,20,035 equity shares or approximately 5% at an average price of Rs 61.14 from the open market as of March 31, 2002.

Leadership

The Centre for Monitoring the Indian Economy (CMIE) has ranked Blue Star as the largest Company in India in its Report on Industry Market Size and Shares published in August 2001. The category includes all types of airconditioning equipment, namely central airconditioning plants, packaged airconditioners, and split and window airconditioners. Blue Star has been ranked overall No 1 in this category, with a market share of 23.45%.

During the financial year 2001-02, the Company strengthened its leadership position in its core airconditioning and refrigeration business. The Company substantially expanded its distribution reach through major dealerisation initiatives.

Professional Electronics And Industrial Equipment

For over 45 years, Blue Star has been marketing a wide range of products, systems and services in the field of Professional Electronics. The lines of business are Medical Electronics, Data Communication, Test and Measuring Instruments, Analytical Instruments, Material Testing Machines and Industrial equipment. The Company represents world renowned manufacturers, usually leaders in their respective fields, such as Hitachi Medical and Scientific Atlanta. The Electronics Division constantly keeps pace with technical advances around the world, and its strength lies in its intellectual capital. The Division has produced a profit every single year of its existence, with minimum capital employment. During the financial year 2001-02, this Division has contributed significantly to the overall performance of the Company.

Ashok M Advani, Chairman & Chief Executive Officer adds "On the whole, productive use of resources and excellent tax planning resulted in improved profitability. The shareholders will be happy to know that return on average capital employed (ROCE) improved to 27% from 20% while the return on shareholders' funds increased to 25% from 21%".

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