Blue Star Ltd shares were on the surge on Tuesday after the leading air conditioning and commercial refrigeration company, announced a whopping 66% surge in its consolidated net profit, reaching ₹70.77 crore for Q2 ending September 30. This impressive growth, up from last year’s ₹42.64 crore, is attributed to margin expansion and an overall uptick in growth.
Blue Star’s Q2 Performance: The firm’s Q2 revenue also saw a significant 19.47% jump, touching ₹1,890.40 crore, compared to ₹1,582.29 crore from the same period last year. Blue Star credited this growth to its strategic focus on total cost management, coupled with stable commodity prices and exchange rates.
Notably, the company experienced a robust order influx this quarter, resulting in a record-breaking order book. Expenses for the quarter rose by 17.94% to ₹1,808.37 crore, while the total income stood at ₹1,903.36 crore.
Segment-wise, Blue Star’s electro-mechanical projects and commercial air conditioning systems revenue increased by 12.06% to ₹1,077.21 crore. The company also highlighted a resurgence in demand for room air conditioners post-summer, despite challenges posed by unseasonal rains. The ‘Unitary product’ segment revenue soared by 38% to ₹729.49 crore, driven by rising consumer demand in areas like food retail, hospitality, and dairy.
However, the ‘Professional electronics and industrial systems’ segment faced a 9.4% dip in revenue, attributed to a slowdown in the data security business.
Get all the latest Share Market trends and news to set you up for the week ahead.
Price Action: Blue Star Ltd. shares were trading 4.35% at ₹910.15 on Tuesday morning shortly after market open. Shares of the company jumped over 9% today to hit a new 52-week high of ₹955.
© 2023 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.