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Blue Star Q1 net down 74% YoY at Rs 9.79 crore
Air conditioning major Blue Star’s net profit for the first quarter slumped 74% from a year ago to just Rs 9.79 crore due to losses in electro mechanical projects and packaged air conditioning business.
Air conditioning major Blue Star 's net profit for the first quarter slumped 74% from a year ago to just Rs 9.79 crore due to losses in electro mechanical projects and packaged air conditioning business.
The company's net sales for the three-month period rose 7% to Rs 703.18 crore.
The electro mechanical projects and packaged air conditioning business, which accounted for 49% of total revenues in the quarter, reported a loss of Rs 8.87 crore, compared with a profit of Rs 33.57 crore in the year ago quarter. Revenue from the segment was down 9% from a year ago to Rs 341.70 crore.
"The contracting environment in the country is becoming increasingly challenging as labour, raw material input costs and general operating expenses increases continue unabated," Blue Star said Friday.
The company said it has sharpened oversight on project costs and is examining the project profitability more critically largely in the electro mechanical and packaged air conditioning business.
It expects the profit and revenue from contracting activities will remain "under pressure" for the "immediate future."
Meanwhile, revenue from Blue Star's cooling products segment rose 30% in April-June to Rs 328.14 crore, boosted by higher room air conditioner sales.
Blue Star's shares closed down 0.9% at Rs 297.50 on NSE on Friday.
