Blue Star clocks Q4 profit at Rs 103 crore on higher revenues

Air conditioning and commercial refrigeration major Blue Star said on Thursday its profit before tax before exceptional items was Rs 103 crore for Q4 FY21 compared to Rs 13 crore in Q4 FY20.

Revenue from operations recovered 124 per cent to Rs 1,612 crore as compared to Rs 1,299 crore in the same period.

Revenue growth and improvement in profitability across segments enabled operating profit (PBIDTA excluding other income and finance income) to increase to Rs 102 crores for Q4 FY21 from Rs 37 crore in the same period of previous fiscal.

The company said healthy cash from operations and improvement in working capital efficiencies enabled a significant reduction of Rs 282 crore in net borrowings.

"Our goal is to grow faster than the market, keep operating costs under control and manage the balance sheet prudently with a clear focus on operating cash flows," said Vir Advani, Vice Chairman and Managing Director.

The board has recommended a final dividend of Rs 4 per equity share of Rs 2 each for the financial year ended March 31.

Blue Star has a market share of 60 to 70 per cent in the pharmaceutical and healthcare segments in its addressed product categories like modular cold rooms, medical freezers, ultra-low temperature freezers, pharma refrigerators and blood bank refrigerators.

Besides, it offers a wide spectrum of cold chain equipment catering to agriculture, dairy, ice-cream, processed foods, hotels, restaurants, fast-food chains, quick service restaurants and retail outlets besides several institutional clients.

The company is doubling its capacity for commercial refrigeration products by setting up a new manufacturing plant at a cost of Rs 130 crore at its existing facility at Wada in Thane district of Maharashtra.

The new facility will have annual capacity to produce two lakh deep freezers and one lakh storage water coolers.

( With inputs from ANI )