Blue Star, a leading consumer durable firm, witnessed a strong start in Tuesday’s trading session following the release of its Q2FY24 earnings. The company reported a remarkable 19.5% surge in its consolidated revenue from operations, reaching ₹1,890 crore compared to ₹1,582 crore in the same period last year. Notably, the electro-mechanical projects & commercial air conditioning systems segment, contributing over 55% to the total revenue, experienced a substantial growth of 12.1%, totaling ₹1,077 crore in Q2 FY24.
Despite a slowdown in the commercial buildings sector, the Electro-Mechanical Projects business thrived due to active inquiries and order finalizations in sectors like factories, data centres, railway electrification, water MEP, metro railway, and healthcare. The commercial air conditioning business also gained traction from industrial, healthcare, and retail sectors, as stated in the company’s earnings report.
Additionally, the Unitary Products segment showed a significant growth of 38%, reaching ₹729 crore, while the professional electronics and industrial systems segment faced a minor decline of 9.4%, totaling ₹83.70 crore, owing to a slowdown in the data security business.
Blue Star’s operating profit for the quarter surged to ₹122.69 crore, driven by increased scale and higher gross margins, marking a significant improvement over the previous year. The company’s consolidated net profit reached ₹70.77 crore in Q2FY24, reflecting a substantial 66% increase compared to the same period last year. In H1FY24, the company reported a consolidated net profit of ₹151.14 crore, indicating a robust 31.75% surge.
The company continues its strategic investments in expanding manufacturing capacity, R&D acceleration, and digitalization, aligning with its growth plans and profitability improvement initiatives. As a result, Blue Star ended the quarter with a net cash position of ₹285.85 crore, a notable achievement compared to a net borrowing of ₹392.62 crore as of September 30, 2022.
Investors responded positively to Blue Star’s impressive Q2FY24 performance, leading to a 6.53% gap up opening at ₹929 apiece. The stock further rallied, reaching an all-time high of ₹955 apiece, up by 9.51%, and was trading with a gain of 5.89% at ₹923.60 by 10:58 AM.
