Dolat Capital: Blue Star Hit By Tough Quarter; Growth Outlook Ahead

BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Dolat Capital Report.Q1 was a hard quarter for Blue Star Ltd. with revenues down 60% YoY, driven by a dip of 70% in the unitary cooling business at Rs 2.7 billion which was impacted by lost summer season.The project business was down 50%, impacted due to sites not operating at full capacity which has led to a loss, with Ebit level losses in both the segments.Both the businesses are showing improvement as the economy opens up hand is expected to normalize by Q4 FY21, which is the next big quarter for the refrigeration and air conditioning industry.Inventory levels were higher by 30 days than usual levels but this is not alarming and Blue star expects inventory is expected to reach normal levels Q3 FY21. Order inflow and revenue in the Electro-Mechanical Projects and Commercial Air Conditioning Systems segment were impacted due to the lockdown.Carried Forward order book was marginally higher as on June 30, 2020 at Rs 29.2 billion compared to Rs 28.4 billion as on June 30, 2019, mainly due to healthcare, pharma and processed food industry orders for commercial cooling products..Click on the attachment to read the full report:.DISCLAIMERThis report is authored by an external party. BloombergQuint does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the brokerage and do not represent the views of BloombergQuint..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Dolat Capital: Blue Star Hit By Tough Quarter; Growth Outlook Ahead

Dolat Capital: Blue Star Hit By Tough Quarter; Growth Outlook Ahead

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