Blue Star stock skyrockets 11% after a strong financial performance in Q3FY22

3 Feb 2022 , 12:12 PM

Blue Star Ltd stocks witnessed massive buying  sentiments from investors on Thursday after the company presented its financial results for the quarter ended December 31, 2021.

“Encouraging traction from the products portfolio and service solutions, coupled with the revival of business and economic activities, enabled the Company to end the quarter on a strong note with all the business segments witnessing robust volume growth.

The consolidated revenue from operations and revenue from each of the segments for the quarter surpassed revenue achieved in the pre-pandemic period. Despite increases in commodity prices, cost of raw materials and ocean freight, the Company delivered a record Q3 Operating Profit of Rs90.59cr”, said Blue Star in a regulatory filing on Wednesday.

Consolidated Financial Performance for Q3FY22

• The Company’s Revenue from Operations increased by 34.0% to Rs1506.22cr for the quarter ended December 31, 2021, on a consolidated basis, compared to Rs1123.89cr during the same period in the previous year.
• The Operating Profit (PBIDTA excluding Other Income and Finance Income) for the quarter was Rs90.59cr (6.0% of Revenue) compared to Rs81.56cr (7.3% of revenue) in Q3FY21. Impact of increase in commodity prices, raw materials and ocean freight and roll back of FY21 cuts in discretionary spends led to a lower EBITDA percentage for Q3FY22.
• Net Profit for the quarter grew by 29.4% to Rs47.57cr compared to Rs36.77cr in Q3FY21.
• Other Income (including Finance Income) for Q3FY22 was Rs13.38cr compared to Rs8.09cr in Q3FY21. Other Income for Q3FY22 was higher on account of a subsidy received for one of the Company’s manufacturing plants.
• Finance Cost for the quarter decreased to Rs11.56cr from Rs14.92cr in Q3FY21 due to a reduction in gross borrowings and lower cost of funds.
• The Tax expense for the quarter was Rs22.75cr compared to Rs12.96cr in Q3FY21.
• Earnings per share for Q3FY22 (Face value of Rs2.00) was Rs4.94 compared to Rs3.82 in Q3FY21.
• Carried Forward Order Book as on December 31, 2021, grew by 4.5% to Rs3301.33cr compared to Rs3157.90cr as on December 31, 2020.
• Net Borrowing as on December 31, 2021, increased marginally to Rs165.11cr (debt equity ratio of 0.18) compared to Rs131.01cr as on December 31, 2020 (debt equity ratio of 0.16), owing to planned advancement in inventory levels to meet the demand for the upcoming season and investments in the expansion projects at Sri City and Wada.

Vir S. Advani, Vice Chairman & Managing Director, Blue Star Limited adds, “We delivered an impressive performance for the quarter, despite margins being impacted by the volatility in commodity prices and ocean freight. With the third wave causing a relatively moderate disruption from the first week of January 2022, we are anticipating economic activities to revive fully by the end of February and are optimistic on the growth outlook for the peak selling months, commencing March.

“Our mass premium product portfolio in the Room ACs business continues to resonate well with distributoRsand customers; prospects for our expanded range of commercial refrigeration products are encouraging; and increased investments by both the public and private sectoRsare expected to offer good opportunities to our Projects business.”

At around 12:13 PM, Blue Star skyrocketed 11.1% at Rs1,013.25 per piece on Sensex.