Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) for the quarter declined by 16% from the year-ago quarter to ₹200 crore, which is in-line with the CNBC-TV18 poll of ₹194 crore.
EBITDA margin narrowed by 160 basis points to 6.7% from 8.3% last year, but the figure is exactly what the analysts in the CNBC-TV18 poll had projected.
The company attributed the quarterly performance to unseasonal rains across the country, which resulted in a weak summer, and impacted the Room Air Conditioners business adversely. However, the RAC business weakness was offset by the B2B business, which continued to do well.”We anticipate the demand to revive during the upcoming festive season. Further, our well-diversified portfolio of B2B products and solutions comprising, Electro-Mechanical Projects, Commercial Air Conditioning and Commercial Refrigeration, should help us partly offset the shortfall during the rest of the financial year,” Vir Advani of Blue Star was quoted as saying.
Blue Star’s EMP business grew by 35.9% from last year to ₹1,412.4 crore. The segment saw strong order bookings aided by continued demand from factories, data centres, and healthcare sectors. The segment also has a healthy order pipeline for the upcoming quarters, according to Blue Star’s press statement.
On the flip side, the UCP business revenue declined 13.3% from last year to ₹1,499 crore. However, market share increased in this business and company continues to remain optimistic about this business.
Shares of Blue Star gained as much as 3% after the result announcements, eventually ending 2% higher at ₹1,786.3. The stock is down 21% so far in 2025.
