India's Blue Star says Q4 profit triples on strong AC demand

BENGALURU (Reuters) - Indian air conditioner maker Blue Star Ltd said on Thursday that its fourth-quarter profit nearly tripled, as an early summer and soaring temperatures spurred AC sales.

Consolidated net profit rose to 2.25 billion rupees ($27.5 million) in the quarter ended March 31, from 761.6 million rupees a year earlier. Total revenue from operations rose 16.4% to 26.24 billion rupees.

Blue Star also said it will issue one bonus share for every share held.

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Blue Star's order inflows have risen nearly 71% over the past two years after a revamp of its product portfolio and its expansion in the railway electrifications sector.

The Indian air-conditioning industry has also gained significantly from the early arrival of summer this year. Room AC sales saw a sharp uptick in March amid healthy consumer sentiment. Rising infrastructure development in the country could drive up demand for cooling appliances even further, according to industry watchers.


Valuation Estimates (next 12 Analysts' sentiment

(next 12 months)


RIC PE EV/EBI Revenue profit Mean # of Stock to Div

TDA growth growth rating* analyst price yield

s target** (%)

Blue Star Ltd 37.58 22.58 17.65 33.64 Buy 19 0.99 0.70

Voltas Ltd 45.74 29.67 16.72 60.50 Hold 40 0.89 0.52

Havells India Ltd 50.29 33.06 13.20 39.48 Buy 22 0.93 0.42

Crompton Greaves 26.71 17.89 11.87 28.58 Buy 35 0.73 0.97


Electricals Ltd

* The mean of analyst ratings standardised to a scale of Strong Buy, Buy, Hold, Sell, and Strong Sell

** The ratio of the stock's last close to analysts' mean price target; a ratio above 1 means the stock is trading above the PT


GRAPHIC: Bluestar and peers chart

-- All data from Refinitiv

-- $1 = 81.7420 Indian rupees

(Reporting by Priya Sagar in Bengaluru; Editing by Savio D'Souza)