Blue Star Q1 Review - Operating Number In Line: Dolat Capital
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Dolat Capital Report
Blue Star Ltd.'s sales came slightly ahead at Rs 10.5 billion, up 68% YoY; led by unitary cooling revenues growing by 83% YoY in Q1, though on a lower base of Q1 FY21.
Margins came in at 4% up 380 basis points YoY and in line with expectations.
Balance sheet was well managed on working capital which has helped reduce debt.
Room air conditioner business saw the lockdown impacting its best quarter, but it is expected to normalise from Q2 onwards with margins to reach ~8% in Q4 FY22 with full impact of price hikes catching on.
Blue Star is confident of recovering from the lockdown impact in Q1 and grow market share in RAC.
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