Margins pressurize Blue Star's net - Views on News from Equitymaster

Helping You Build Wealth With Honest Research
Since 1996. Try Now

  • MyStocks

MEMBER'S LOGINX

     
Login Failure
   
     
   
     
 
 
 
(Please do not use this option on a public machine)
 
     
 
 
 
  Sign Up | Forgot Password?  

Margins pressurize Blue Star's net

Jul 31, 2000

Blue Star Limited has posted a 8.4% growth in sales from Rs 986 m in 1QFY00 to Rs 1068 m in 1QFY01. The operating profit margins have however, dipped from 7.9% to 6.8%. This is because the air conditioner market is becoming highly competitive, especially after the entry of the Korean multinationals like LG and Samsung, as the realisations have come under enormous pressure.

(Rs m) 1QFY00 1QFY01 Change
Sales 986 1,068 8.4%
Other Income 0.3 17.4  
Expenditure 908 996 9.6%
Operating Profit (EBDIT) 78 73 -6.4%
Operating Profit Margin (%) 7.9% 6.8%  
Interest 19 21 6.8%
Depreciation 22 26 22.3%
Profit before Tax 37 43 16.1%
Other Adjustments 8 7 -17.5%
Tax 3 5 66.7%
Profit after Tax/(Loss) 26 32 20.5%
Net profit margin (%) 2.7% 2.3%  
No. of Shares (eoy) (m) 27.1 20.3  
Diluted number of shares 20.3 20.3  
Diluted Earnings per share* 5.2 6.2  
*(annualised)      

Excluding the demerged International Software Division (ISD), the sales for the current year is up 19%, from Rs 900 m in 1QFY00 to Rs 1068 m in 1QFY01. The other adjustments here include charges on account of the voluntary retirement scheme.

The scheme of arrangement between the company and Blue Star Infotech Ltd.. For the demerger of the International Software Division (ISD) has been implemented. Consequently the paid-up capital of the company stands reduced from Rs 270.9 m to Rs 203.2 m.

The stock is currently trading at Rs 36.5 at a P/E multiple of 5.8x on the annualised first quarter 1QFY01 earnings.

Equitymaster requests your view! Post a comment on "Margins pressurize Blue Star's net". Click here!

  

More Views on News

BLUE STAR Announces Quarterly Results (2QFY21); Net Profit Down 59.4% (Quarterly Result Update)

Oct 30, 2020 | Updated on Oct 30, 2020

For the quarter ended September 2020, BLUE STAR has posted a net profit of Rs 150 m (down 59.4% YoY). Sales on the other hand came in at Rs 9 bn (down 27.8% YoY). Read on for a complete analysis of BLUE STAR's quarterly results.

BLUE STAR Announces Quarterly Results (4QFY20); Net Profit Down 89.2% (Quarterly Result Update)

May 14, 2020 | Updated on May 14, 2020

For the quarter ended March 2020, BLUE STAR has posted a net profit of Rs 84 m (down 89.2% YoY). Sales on the other hand came in at Rs 13 bn (down 18.6% YoY). Read on for a complete analysis of BLUE STAR's quarterly results.

BLUE STAR 2018-19 Annual Report Analysis (Annual Result Update)

Sep 30, 2019 | Updated on Sep 30, 2019

Here's an analysis of the annual report of BLUE STAR for 2018-19. It includes a full income statement, balance sheet and cash flow analysis of BLUE STAR. Also includes updates on the valuation of BLUE STAR.

More Views on News

Most Popular

My Recent Recommendation Will Profit from the Global Supply Chain Crisis (Profit Hunter)

Mar 31, 2021

A tiny chemical company, started in the Licence Raj era, is a great example of a new wealth creating opportunity.

My Stock Trading Strategy (Fast Profits Daily)

Mar 31, 2021

In this video I'll show you exactly how I go about picking stocks for trading.

4 Stocks to Make Your Portfolio Immune to the Second Covid Wave (Profit Hunter)

Apr 6, 2021

Rather than predicting the market, successful investing is more about preparing well and placing your bets accordingly.

If the Market Falls, I Will Do This... (Fast Profits Daily)

Apr 1, 2021

What should you do if the market falls? In this video, I'll tell you what I will do.

India: Recovery Stalled by Vaccine Games? (The Honest Truth)

Apr 13, 2021

Ajit Dayal on how India's vaccine strategy will impact the markets.

More

India's #1 Trader
Reveals His Secrets

Secret To Increasing Your Trading Profits Today
Get this Special Report,
The Secret to Increasing Your Trading Profits Today, Now!
We will never sell or rent your email id.
Please read our Terms

BLUE STAR SHARE PRICE


Apr 13, 2021 03:38 PM

TRACK BLUE STAR

  • Track your investment in BLUE STAR with Equitymaster's Portfolio Tracker. Set live price alerts, get research alerts and more. Get access now...
  • Add To MyStocks

COMPARE BLUE STAR WITH

MARKET STATS