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Blue Star: Counting on Good Monsoons - Views on News from Equitymaster
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Blue Star: Counting on Good Monsoons
Aug 8, 2016

Blue Star has announced first quarter results for financial year 2016-2017 (1QFY17). The company reported a 19.3% YoY increase in sales while net profits fell by 28.8% YoY. Here is our analysis of the results.

Performance summary
  • Topline increases by around 19% YoY during 1QFY17.
  • Operating margins came in at 6.3% compared to 7.4% during the previous year's quarter
  • Net profits fell 28.8% YoY due to the effect of exceptional items being present in the earlier year's corresponding quarter.
  • Order book as at quarter end stood at Rs 17.76 bn, representing a 11% YoY growth.

    Consolidated performance snapshot
    (Rs m) 1QFY16 1QFY17 Change
    Income from operations 10,203 12,168 19.3%
    Expenditure 9,450 11,403 20.7%
    Operating profit (EBDITA) 753 765 1.6%
    Operating profit margin (%) 7.4% 6.3%
    Other income 57 111 95.1%
    Interest 103 92 -10.5%
    Depreciation 115 135 17.2%
    Exceptional items 353 0
    Profit before tax 944 649 -31.3%
    Tax 222 145 -34.9%
    Profit after tax/(loss) 722 504 -30.2%
    Share of profit in JVs 6 10
    Minority interest -6 0
    Net profit after minority interest 722 514 -28.8%
    Net profit margin (%) 7.1% 4.1%
    No. of shares 95.3
    Basic & diluted earnings per share (Rs)* 8.9
    P/E ratio (x)* 55.7

    * On a trailing 12 months earnings.

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