Blue Star Ltd consolidated net loss of Rs0.94cr in Q3FY19, vs net profit of Rs13.36cr in Q3FY18

The company’s consolidated revenue stood at Rs1,098.97cr, up 17.91% yoy and 6.47% qoq.

Feb 06, 2019 10:02 IST India Infoline Research Team

Blue Star Ltd Q3FY19

Consolidated Results Q3FY19: (Rs. in cr)

Q3FY19 YoY (%)
Revenue 1,098.97 17.9
EBITDA 42.34 [0.2]
EBITDA Margin (%) 3.9 [70]
Net Loss (adjusted) 0.94 0
***EBITDA margin change is bps
Blue Star’s consolidated revenues grew by 17.9% yoy to Rs1,099cr in Q3FY19 vs. Rs932cr in Q3FY18. EBITDA for the current quarter was almost flat at Rs42.3cr, while EBITDA margin declined by 70bps yoy to 3.9% (vs. 4.6% in Q3FY18). The company reported net loss of Rs0.9cr in Q3FY19 as compared to net profit of Rs13.4cr during the same quarter last year.
  • Revenue growth was primarily driven by strong execution in Project segment and increased demand for refrigeration products
  • Operating profit was muted owing to higher input costs (up 23.6% yoy to Rs837.7cr).
  • Profit after taxes was severely impacted owing to allocation of higher provisions for Oman-joint ventures (loss of Rs14.1cr in Q3FY19 vs. loss of Rs2.13cr in Q3FY18), further dragged by higher finance costs (up 78.2% yoy to Rs13.1cr). The company has now decided to exit from the JV due to cost overrun issues.
  • Electro-Mechanical Projects and Packaged Air Conditioning Systems (Project) business grew 15.8% yoy to Rs655.5cr in Q3FY19, primarily driven by strong execution of projects and higher demand for central AC systems. EBIT softened by 1.2% yoy to Rs301cr in Q3FY19, while EBIT margin stood at 4.6% (down from 5.4% in Q3FY18), suffered from higher material costs.
  • Unitary Products (UP) revenue during the quarter, witnessed a strong growth of 22% yoy to Rs391.5cr, benefitted from strong demand for refrigeration products (deep freezers and storage water coolers). However, higher pricing pressure in room AC segment led to deep disappointment in EBIT which dropped by 40.5% yoy to Rs9.4cr. Thus EBIT margin dropped from 4.9% in Q3FY18 to 2.4% in Q3FY19.
  • Professional Electronics and Industrial System (PE&IS) segment witnessed a healthy growth of 15.6% yoy to Rs52cr in Q3FY19, driven by higher demand for CT scanners and data security solution products. EBIT jumped 54.5% yoy to Rs6.9cr for the quarter ending December 2018, while EBIT margin increased to 13.2% from 9.9% in Q3FY18.
  • The order book at end of December 2018 stood at Rs2,277cr, registered a growth of 5% on a yoy basis.

Technical View:

Blue Star Ltd is currently trading at Rs. 584, down by 12.85 points or 2.15% from its previous closing of Rs. 596.85 on the BSE.
The scrip opened at Rs. 585.05 and has touched a high and low of Rs. 585.05 and Rs. 573.65 respectively. So far 18,814 (NSE+BSE) shares were traded on the counter. The stock is currently trading above its 200 DMA.

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