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Blue Star: Definite signs of pick up - Views on News from Equitymaster
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Blue Star: Definite signs of pick up
Mar 4, 2016

Blue Star has announced third quarter results for financial year 2015-2016 (3QFY16). The company reported a 15% YoY increase in sales while net profits fell by 24% YoY. Here is our analysis of the results.

Performance summary

  • Standalone topline increases by around 15% YoY during 3QFY16.
  • Operating margins came in at 2.5% compared to negative margins during the previous year's quarter
  • Net profits fell 24% YoY due to lower other income as well as effect of exceptional items.
  • Order book as on 31st Dec 2015 stood at Rs 16.05 bn, representing a 14% YoY growth.

    Standalone performance snapshot

    (Rs m) 3QFY15 3QFY16 Change 9mFY15 9mFY16 Change
    Income from operations 5,850 6,748 15.3% 20,494 22,877 11.6%
    Expenditure 5,868 6,579 12.1% 19,710 21,904 11.1%
    Operating profit (EBDITA) -18 169 785 973 24.0%
    Operating profit margin (%) -0.3% 2.5% 3.8% 4.3%
    Other income 127 124 -2.6% 325 271 -16.7%
    Interest 105 91 -13.9% 321 267 -17.0%
    Depreciation 103 114 10.3% 289 320 10.8%
    Exceptional items 183 -20 37 -178
    Profit before tax 84 68 -18.6% 536 480 -10.5%
    Tax 21 20 73 99
    Profit after tax/(loss) 63 48 -23.8% 464 380 -17.9%
    Net profit margin (%) 1.1% 0.7% 2.3% 1.7%
    No. of shares 90.0
    Basic & diluted earnings per share (Rs)* 16.0
    P/E ratio (x)* 21.3

    *On a trailing 12 months earnings.

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