The shares of India’s largest central air conditioning manufacturer gained 9.5 percent to the 52-week high price of Rs 955 a share after the company announced strong September quarter financial results.
At 1:30 p.m., Blue Star Ltd shares were trading at Rs 904.50 per share, up Rs 30.90 or 3.57 percent on the National Stock Exchange from the previous close price. The company has a market capitalization of Rs 17,606 crores.
The Blue Star reported a 20 percent increase in revenue year on year, from Rs 1,590 crore in Q2FY23 to Rs 1,903 crore in Q2FY24. During the same period, net profit increased by 66 percent from Rs 42.64 crore to Rs 70.77 crore.
In comparison to the previous quarter, operational revenue decreased by 15 percent from Rs 2,235 crore in Q1FY24 to Rs 1,903 crore in Q2FY24, Further net profit declined by 15 percent from Rs 83 crore to Rs 70 crore. According to the company’s exchange filing.
The Blue Star shares have gained 23 percent return in six months and 46 percent in a year.
The company’s Carried-forward order book as of September 30, 2023, grew significantly by 44.4 percent to Rs 6,008.52 crores, as compared to Rs 4,162.05 crores as of September 30, 2022.
As part of company growth plans and profitability improvement programs, the company is to invest in expanding manufacturing capacity, accelerating R&D, and digitalization. As a result, the capital employed on September 30, 2023, increased to Rs 2069.62 crore, up from Rs 1441.16 crore on September 30, 2022.
The company’s return on equity has increased from 16.48 percent in FY22 to 30.09 percent in FY23, while in the same time frame, the return on capital employed rose from 22.04 percent to 27.16 percent.
Blue Star is engaged in manufacturing air purifiers, air coolers, water purifiers, cold storage, and specialty products. The Company also offers turnkey solutions in Mechanical, Electrical, Plumbing, and Fire-fighting Projects.
Written by Omkar Chitnis
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