Blue Star Ltd's Q4FY18 consolidated net profit rises 37.83% yoy to Rs51.23cr : In-line with Estimates

India Infoline Research Team | May 14, 2018 15:50 IST

The company’s consolidated revenue stood at Rs1,475.88cr, up 7.78% yoy

Blue Star Ltd Q4FY18

Consolidated Results Q4FY18: (Rs. in cr)

Q4FY18 YoY (%)
Revenue 1,475.88 7.8
EBITDA 90.21 25.6
EBITDA Margin (%) 6.1 86
Net Profit  51.23 37.8
***EBITDA margin change is bps
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Buy

Reco. Price

780

Last updated on

14-May-2018


Blue Star’s consolidated revenue increased by 7.8% yoy to Rs1,475.9cr in Q4FY18 from Rs1,369.3cr in Q4FY17. EBITDA grew substantially by 25.6% yoy to Rs90.2cr from Rs71.8cr in Q4FY17. The increase in EBITDA was a result of sharp decline in raw material cost as a proportion to the sales (69.5% in Q4FY18 vs 71.5% in Q4FY17) in the quarter. Thus, EBITDA margin improved by 86bps from 5.2% in Q4FY17 to 6.1% in Q4FY18. Net profit during the quarter increased by 37.8% yoy to Rs51.2cr vs. Rs37.2cr in Q4FY17.
  • Net profit after adjusting for exceptional gains on account of profit on sale of property in Q4FY18 has grown by 26.3% yoy to Rs48.1cr (assuming ~30% tax rate for exceptional gain).
  • Other income declined by 49% yoy to Rs3.8cr.
  • Electro-Mechanical Projects and Packaged Air Conditioning Systems (EMPS) segment's revenue (49.1% of Q4FY18 revenue) grew by 6.7% yoy to Rs725.1cr, while EBIT margin in the segment increased from 4.7% in Q4FY17 to 5.6% in Q4FY18. The revenue continued to be impacted due to lower order inflow on account of muted private sector investments as well as slow execution in ongoing projects. However, profitability improved due to the better margin profile of completed as well as under execution projects.
  • Order book in the EMPS segment grew by 20% to Rs2,094cr at FY18 end as compared to Rs1,748cr at FY17 end.
  • Unitary products segment (46.9% of Q4FY18 revenue) revenue grew moderately by 7.4% yoy to Rs692.5cr. EBIT margin in the segment increased from 8.7% in Q4FY17 to 9.9% in Q4FY18.
  • Professional electronics and industrial systems segment revenue (4% of Q4FY18 revenue) was up 4% yoy to Rs58.4cr. The tepid growth was a result of continued slowdown in industrial capex and scaling down of the Infra Security Solutions line of business. The subdued growth led to decline in EBIT margin from 19.3% in Q4FY17 to 12.5% in Q4FY18.
Technical View:

Blue Star Ltd is currently trading at Rs. 767.75, down by 16.95 points or 2.16% from its previous closing of Rs. 784.70 on the BSE.
The scrip opened at Rs. 785.20 and has touched a high and low of Rs. 788.75 and Rs. 750.85 respectively. So far 1,79,034 (NSE+BSE) shares were traded on the counter. The stock is currently trading above its 50 DMA.


***Note: This is a NSE Chart

 

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