Moneycontrol
Aug 10, 2017 12:41 PM IST | Source: CNBC-TV18

Blue Star Q1 PAT seen 10% higher at Rs 56 cr; revenue could spike to Rs 1,338 crore

On an operating level, the company could post a profit of Rs 92 crore, a rise of 21 percent from Rs 76 crore

Blue Star Q1 PAT seen 10% higher at Rs 56 cr; revenue could spike to Rs 1,338 crore

Moneycontrol News

Air conditioner manufacturer, Blue Star, will be reporting its earnings for June quarter on Friday.

The company is likely to report a 10 percent growth in its profit after tax (PAT) at Rs 56 crore against Rs 51 crore in the same period last year.

The revenue could rise by 10 percent at Rs 1,338 crore against Rs 1,217 crore in the June quarter of last year.

On an operating level, the company could post a profit of Rs 92 crore, a rise of 21 percent from Rs 76 crore. Meanwhile, the EBITDA margin is seen at 6.8 percent against 6.2 percent.

The company’s Unitary cooling division (UCP) is likely to report revenue growth of 15% YoY, partially impacted by destocking. Further, against an initial estimate of 25% revenue growth in FY18, Blue Star now expects 15-18% growth in UCP segment.

In an interview to CNBC-TV18, the company said that it expects the quarter to be flat with respect to the primary sales. It observed that discounts have led to market expansion and those products have run out of stock. Further, for Diwali, it sees demand to be better year on year.

Key issues to watch

- Impact of LG vacating the fixed-speed air conditioning segment on Blue Star’s market share and sales.

- Impact of GST on 1QFY18 room AC segment sales.

- Sustainability of profitability and capital employed in MEP business
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