Blue Star (500067) Q1 24/25 earnings summary

Executive summary

• Q1 FY 2025 delivered outstanding business performance, with consolidated revenue up 28.7% year-over-year to ₹2,865.37 crore, driven by robust demand across B2B and B2C segments and an exceptionally hot summer.

• Profit before tax nearly doubled to ₹226.02 crore, and EPS rose 89.5% to ₹8.21, with net profit increasing to ₹168.76 crore from ₹83.37 crore year-over-year.

• The company maintained a net cash surplus of ₹1,043 crore and improved return on capital employed to 42%.

• The board approved unaudited standalone and consolidated financial results for Q1 ended June 30, 2024, and an Employee Stock Option Scheme 2024 covering up to 500,000 shares, pending shareholder approval.

• Entered FY 2025 with a strong order book and positive outlook, expecting continued growth in the Indian air conditioning and refrigeration market.

Financial highlights

• Revenue from operations grew 28.7% year-over-year to ₹2,865.37 crore in Q1 FY 2025.

• EBITDA (excluding other income) rose to ₹237.83 crore (8.3% margin), up from ₹145 crore (6.5% margin) in Q1 FY 2024.

• Profit before tax nearly doubled to ₹226.02 crore, and net profit increased to ₹168.76 crore from ₹83.37 crore year-over-year.

• EPS for Q1 FY25 was ₹8.21 (consolidated), up 89.5% year-over-year.

• Net cash position improved to ₹1,043 crore from a net borrowing of ₹283.46 crore.

Outlook and guidance

• The outlook for the remainder of FY 2025 is positive, with expectations of sustained growth and robust demand.

• Segment one (EMP & Commercial AC) margin guidance is 7.5%-8%; segment two (Unitary Products) is 8.5%-9%.

• Industry growth for the year is expected at 25%-30%, with the company aiming to outperform the market.

• Plans to strengthen international presence in the USA and Europe, and expand product portfolio and digital infrastructure.

• Unitary products segment is seasonal, impacting quarterly performance.