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Blue Star has already increased market share in room air conditioner business and commercial refrigeration products like water coolers and deep freezers, says Joint MD B Thiagarajan.
Electromechanical projects (EMP) & packaged air conditioners (PAC) segments are likely to report muted growth of 5 percent YoY. Analysts expect robust growth of 25 percent YoY in the cooling products business.
Government expenditure as well as recovery in real estate over next 9-11 months will help growth, Vir Advani, Managing Director of Blue Star.
Blue Start had reported its quarterly earnings on January 29. Revenue grew 12.4 percent to Rs 686 crore year-on-year (YoY) and EBITDA margins rose 260 basis points to 4.1 percent (YoY).
"The company intends to continue its aggressive thrust in the room air conditioners market and aims to gain a market share of 12 per cent in financial year 2016-17 in terms of value," Blue Star Executive Director and President (AC&R Products Business), B Thiagarajan, told reporters here.
Satish Jamdar, MD of Blue Star told CNBC-TV18 that increased capex, revival of projects will push economic growth.
Revenue may rise 6.7 percent to Rs 680 crore with operating profit (earnings before interest, tax, depreciation and amortisation) surging 57.16 percent to Rs 32 crore and margin expansion of 153 basis points at 4.8 percent year-on-year.
Muted execution in the electro-mechanical projects (EMP) segment and moderation of growth in the cooling products segment (especially room AC sales) are expected to keep overall revenue growth subdued, feel analysts.
B Thiagarajan, executive director, Blue Star, says he expects FY16 growth to be around 25 percent.
Blue Star's third quarter profit is seen rising three-fold year-on-year to Rs 8.5 crore, according to the average of estimates of analysts polled by CNBC-TV18. PAT could be higher than the EBITDA growth due to low base of Q3FY14 and recovery in margins in electro-mechanical projects (EMP) segment.
Discussing the results, B Thiagarajan, Executive Director & President- AC&R Products Business, Blue Star, said that a dip in Q2 margins is not a concern
Operating profit may jump 40.7 percent year-on-year to Rs 31.8 crore and margin may expand 120 basis points to 5.1 percent in the quarter gone by.
Kotak Securities has come with its March quarterly earning estimates for capital goods sector. The research firm expects aggregate revenue growth of capital goods sector to be 6.7% YoY in the Mar-ending quarter, driven mainly by L&T, Cummins, and other midcaps and aggregate PAT is expected to post modest growth of 2.7% yoy in Q4 FY13.
“Topline has been flattish through fiscal 2013,†said Satish Jamdar, MD, Blue Star in an interview to CNBC-TV18. The company has delinked from telecom sector as it did not yield profit.
Kotak Securities has come with its December quarterly earning estimates for capital goods sector. According to the research firm, capital goods companies are expected to post aggregate revenue growth of 10.4% YoY in the Dec-ending quarter, driven mainly by L&T, Cummins, and other midcaps.
Emkay Global Financial Services has come with its September quarterly earning estimates for Engineering & Capital Goods (ECG) sector. According to the research firm, subdued performance is expected in Q2FY13E.
Air conditioning and refrigeration products maker Blue Star says the macro economic environment remains challenging and project delays continue across sectors, and so it will focus on quality of projects rather than just growing volumes this year to maintain profitability.
Emkay Global Financial Services has come with its June quarterly earning estimates for Engineering & Capital Goods (ECG) sector. According to the research firm, revenue growth would moderate to 11% (YoY) to Rs 276.9 bn.
Air conditioning major Blue Star expects its margins will decline 3-5% over the next few quarters due to the continued challenges in its electro mechanical projects and packaged air conditioning business.
Emkay Global Financial Services has come out with its earning estimates on Engineering & Capital Goods sector for the quarter ended March 2011. According to the research firm, Blue Star March quarter sales are expected to go up by 13.2% at Rs 989.8 crore, year-on-year, (YoY) basis.
PINC Research has come out with its earning estimates on engineering sector for the quarter ended March 2011. According to the research firm, Blue Star March quarter sales are expected to go down by 9.4% at Rs 792.9 crore, Year-on- Year, (YoY) basis.