Blue Star Reports Significant Q4 Profit and Revenue Growth Driven by Air Conditioning Sales

Blue Star Ltd, a manufacturer of air conditioning and commercial refrigeration systems, reported a 21.47% rise in consolidated net profit for the March quarter, reaching Rs 194 crore. This growth was primarily driven by its room air-conditioner and project business. In the same quarter last year, the company had recorded a net profit of Rs 159.71 crore, as per its regulatory filing.

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Its revenue from operations saw an increase of 20.77%, amounting to Rs 4,018.96 crore in the March quarter compared to Rs 3,327.77 crore in the previous year. The company's total expenses rose by 21.34% to Rs 3,793.73 crore during this period.

Revenue Growth in Key Segments

The electro-mechanical projects and commercial air conditioning systems segment generated revenue of Rs 1,968.17 crore in the January-March quarter, marking a 30.6% increase. Meanwhile, revenue from unitary products, which includes room ACs, reached Rs 1,960.23 crore in the same period.

However, there was a decline in revenue from the professional electronics and industrial systems business, which fell by 19.18% to Rs 90.56 crore. Despite this dip, Blue Star's total income for the fourth quarter rose to Rs 4,042.95 crore from Rs 3,340.16 crore in the corresponding period last year.

Annual Financial Performance

For the full fiscal year FY25, Blue Star's net profit increased to Rs 591.28 crore from Rs 414.31 crore in FY24. The company's total consolidated income grew by 23.73%, reaching Rs 12,042.65 crore for the financial year ending March 31, 2025.

The company maintained its growth momentum throughout FY25 due to strong demand across its key businesses. The Room AC segment experienced significant growth driven by an intense summer and proactive stocking by channel partners to manage potential supply chain issues.

Board Decisions and Market Performance

In a separate announcement, Blue Star's board recommended a final dividend of Rs 9 per equity share of Rs 2 each for the financial year ending March 31, 2025. Additionally, they approved the re-appointment of Vir S Advani as Chairman & Managing Director for another five years starting April 1, 2026.

This decision is based on recommendations from the Nomination and Remuneration Committee and awaits approval from company members. On Wednesday, Blue Star Ltd's shares closed at Rs 1,679.95 each on the BSE, reflecting a decrease of 0.65% from the previous day's close.

With inputs from PTI