Blue Star Q1 net loss at Rs 19.66 cr
Blue Star's total expenses were at Rs 664.10 crore. Its revenue from "electro-mechanical projects and commercial air conditioning systems" was at Rs 312.44 crore. "Order inflow and revenue in the electro-mechanical projects and commercial air conditioning systems segment were impacted due to the lockdown.
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Air conditioner maker Blue Star Ltd on Thursday reported a consolidated net loss of 19.66 crore for the first quarter ended June 30, impacted by COVID-19 and subsequent disruptions. The company had posted a net profit of Rs 76.84 crore in the April-June quarter a year ago, Blue Star said in a regulatory filing.
Its revenue from operations was Rs 626.02 crore during the period under review. It was Rs 1,575.45 crore in the corresponding period last fiscal, it added. According to the company, the "results for the quarter are not comparable with those for the previous quarter, owing to the impact of the COVID-19 lockdown on the Group's operations".
"The financial performance for the quarter needs to be viewed in the context of it being a challenging period for the economy as a whole, and the HVAC&R (heating, ventilation, air conditioning, and refrigeration) industry in particular due to the economic disruption caused by the ongoing pandemic. Most part of the summer season was lost, and a majority of the project sites remained shut," it said. Blue Star's total expenses were at Rs 664.10 crore.
Its revenue from "electro-mechanical projects and commercial air conditioning systems" was at Rs 312.44 crore. It was Rs 623.94 crore in Q1 FY2019-20. "Order inflow and revenue in the electro-mechanical projects and commercial air conditioning systems segment were impacted due to the lockdown. Only a few sites were operational," Blue Star said.
Similarly, revenue from unitary products, including business of residential AC, was at Rs 274.85 crore. It was against Rs 906.89 crore in the corresponding quarter previous fiscal. "Though some of the stores opened up in May post the gradual lifting of the lockdown restrictions, low footfall and the relatively higher inventory with the channels impacted revenues," it said, adding "inability to sell during a substantial part of the peak selling summer season combined with additional burden of demurrage and detention charges due to the lockdown resulted in erosion of margins".
Revenue from professional electronics and industrial systems stood at Rs 38.73 crore. It was Rs 44.62 crore in Q1 FY2019-20. Over the Outlook, Blue Star Vice Chairman & Managing Director Vir S Advani said while Q1 FY21 was an extremely challenging quarter, it has been swiftly navigating and responding to the prevailing difficult situation with prudent and proactive measures.
"The carried forward order book is healthy, and we will continue to prioritise projects execution based on cash flow. As far as the unitary cooling products business is concerned, we are maintaining market share in all categories. The demand is growing on month to month basis and it is expected to normalise by Q4 FY21," he said. Growing investments - by public and private sectors - in digitisation and healthcare segments are expected to provide opportunities for the professional electronics and industrial systems business, Advani added.
Shares of Blue Star Ltd on Tuesday settled at Rs 506.45 apiece on the BSE, up 4.65 per cent from its previous close..
(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)
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