Air-conditioning & commercial refrigeration company Blue Star's first quarter net profit is seen rising 35.4 percent year-on-year to Rs 42 crore and revenue is likely to inch up 9.4 percent to Rs 925 crore, according to a CNBC-TV18 poll.
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.
EBIT margin in the EMP segment is expected to be lacklustre at around 3 percent but margin in the unitary cooling products (UCP) segment is expected to remain healthy.
Operating profit (earnings before interest, tax, depreciation and amortisation) may grow 20.8 percent year-on-year to Rs 64.1 crore and margin may expand 60 basis points to 6.9 percent in the quarter.
Key factors to watch out for would be its ability to sustain EBITDA margins and closure of low margin legacy orders.
On June 30, Blue Star scaled down its FY16 growth target from 25 percent to 10-15 percent.
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