Blue Star Net Profit up 55%. Declares Record 55% dividend

Blue Star Net Profit up 55%. Declares Record 55% dividend

Financial Performance

Central air conditioning and commercial refrigeration major Blue Star has registered a Net Profit of Rs 23.54 crores for the year ended March 31, 2001 from a Total Income of Rs 509.81 crores. These results do not include the income from the software business which was spun off into a separate company - Blue Star Infotech Limited. In comparison with the previous year (also excluding the software business), Total Income grew by 15% while Net Profit jumped by 55%.

Earnings per share stood at Rs 11.58, compared to Rs 8.58 in the previous year.


Keeping in mind the good financial results, the Directors have declared a record dividend of Rs. 5.50 per equity share.

Blue Star, incorporated in 1949, has been paying regular dividends. The current dividend of 55%, offers an attractive yield for investors looking for high returns in safe investments.

Strengthens Leadership Position In Air conditioning And Refrigeration Businesses

The Company strengthened its leadership position in its core air conditioning and refrigeration business by gaining market share in most of the segments in which it operates. The software, healthcare, and hospitality industries contributed to the growth apart from the retail showroom segment. The Company expanded its distribution reach through extensive dealerisation initiatives, and focused on commercial establishments such as showrooms, jewellers and restaurants. Several innovative products and systems were introduced which help customers save power and at the same time offer efficient cooling. Order inflow for the year registered a growth of 20%.

Shareholder Value

To some investors, the future growth and profitablity of Blue Star without the divested business of software services was a matter of doubt a year ago. But the Company remained optimistic about the prospects for its core air conditioning and refrigeration businesses. The solid financial performance for the period ended March 31, 2001 is tangible proof in this regard.

Ashok M Advani, Chairman, adds, "As I had stated earlier, the Board of Directors is conscious of its responsibility to continuously increase shareholder value and we are committed to delivering superior financial results. The Company has improved the Return on Capital Employed to 19.6% while the Return on Net Worth has climbed to 20.7%."


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