Blue Star reports good financial performance for Q1FY22

The quarter commenced on the backdrop of a pick-up in business activities and an improvement in general sentiments witnessed in the second half of the last financial year.

The growth momentum was interrupted by the resurgence of the second wave of COVID-19 in the middle of April and the consequent lockdown like restrictions imposed in various states. This impacted revenue for the Unitary Products segment during its peak selling season and also disrupted operations at project sites, for the second year in a row. However, the impact was relatively lower compared to last year due to the staggered nature of the lockdown-like restrictions and the agility in response by the Company. This enabled the Company to end the quarter with a healthy growth in revenue and better profitability for Q1FY22 compared to Q1FY21.

Consolidated Financial Performance for Q1FY22

• The Company’s Revenue from Operations increased by 68.1 percent to ₹1052.04 crores for the quarter ended June 30, 2021 on a consolidated basis, compared to ₹626.02 crores during the same period in the previous year.
• The Operating Profit (PBIDTA excluding Other Income and Finance Income) for the quarter was ₹42.23 crores compared to ₹1.36 crores in Q1FY21.
• Net Profit for the quarter was ₹12.69 crores compared to a net loss of ₹19.66 crores in Q1FY21.
• Other Income (including Finance Income) for Q1FY22 was ₹7.95 crores compared to ₹8.61 crores in Q1FY21.
• Finance Cost for the quarter decreased to ₹10.73 crores from ₹18.54 crores in Q1FY21 due to reduction in borrowings.
• The Tax expense for the quarter was ₹6.52 crores compared to a tax credit of ₹9.52 crores in Q1FY21.
• Earnings per share for Q1FY22 (Face value of ₹2.00) was ₹1.32 positive vis-à-vis ₹2.04 negative in Q1FY21.
• Carried Forward Order Book as on June 30, 2021 grew by 8.0 percent to ₹3152.30 crores compared to ₹2918.66 crores as on June 30, 2020.
• Despite short-term challenges to the operating cash flows during the quarter, Net Borrowing as on June 30, 2021, reduced to ₹68.47 crores (debt equity ratio of 0.08) compared to ₹428.53 crores as on June 30, 2020 (debt equity ratio of 0.56) on account of prudent working capital management and other continuing capital preservation measures.

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