Blue Star reports good financial performance for Q1FY22
Blue Star clocked in a net profit of Rs 12.69 crores 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. However, 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.
The Company’s Revenue from Operations increased by 68.1 per cent to Rs 1052.04 crores for the quarter ended June 30, 2021 on a consolidated basis, compared to Rs 626.02 crores during the same period in the previous year. Blue Star also clocked in a net profit of Rs 12.69 crores for the quarter compared to a net loss of Rs 19.66 crores in Q1FY21.
Vir S. Advani, Vice Chairman & Managing Director, Blue Star Limited said, “With the capital investment cycle playing out in a significant manner, the demand for our products and services is expected to be robust. Consumer spending has resumed and we expect to witness healthy growth in demand. We will continue to focus on controlling operating costs and improving working capital efficiencies and operating cash flows. With the vaccination drive expected to pick-up momentum, the impact of the third wave, if any, should be also minimal. Therefore, we believe the prospects for the ensuing quarters are good.”
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