Blue Star (500067) Q2 24/25 earnings summary

Executive summary

• Q2 FY25 consolidated revenue grew to ₹2,276 crore, up 20.4% year-over-year, with net profit rising to ₹96.06 crore, marking robust growth across core segments.

• Room air conditioners saw 27% volume and 25% revenue growth in Q2, while commercial air conditioning and electromechanical projects drove significant revenue and margin improvements.

• The company operates in 18+ international markets, with recent expansion in the USA and Europe and new chiller launches for data centers.

• Commercial refrigeration faced temporary regulatory setbacks but is expected to normalize from October.

• Market share in RAC maintained at 13.75%, with ambitions to reach 14% by year-end.

Financial highlights

• Q2 FY25 consolidated revenue: ₹2,276 crore, up from ₹1,890 crore in Q2 FY24; EBITDA up 21.7% to ₹149 crore; net profit at ₹96.06 crore.

• H1 FY25 revenue reached ₹5,141.33 crore, up 24.9% year-over-year; EBITDA up 44.6% to ₹387 crore.

• PBT for Q2 FY25 was ₹131.4 crore, up 38.3% year-over-year; EPS for H1 FY25 was ₹12.88.

• Return on capital employed improved to 32% as of September 2024.

• Net cash position at ₹185 crore; net worth as of September 30, 2024, was ₹2,732.59 crore.

Outlook and guidance

• FY25 expected to be a landmark year, with continued investments in R&D, manufacturing, and digitalization.

• Guidance maintained: 25%-30% top-line growth in RAC/unitary products and 8.5%-9% operating margin.

• Focus on expanding international presence, especially in the USA and Europe, and ongoing product development for decarbonization and energy efficiency.

• Commercial refrigeration business expected to recover from Q3 onwards.

• Management approved 80,660 stock options under ESOS 2024 to support talent retention and long-term growth.