BlueStar ltd. concall was yesterday evening
"We are witnessing a huge investment in manufacturing sector consequent to domestic demand growth and localization under atma Nirbhar bharat programme."
Here are the concall key takeaways 😀
🧵👇
"We are witnessing a huge investment in manufacturing sector consequent to domestic demand growth and localization under atma Nirbhar bharat programme."
Here are the concall key takeaways 😀
🧵👇
Financial highlights
- Business continued to stage and encouraging recovery and has almost scaled up to last year's qiarter level
- An improved customer buying sentiment continued in Q3 supported by more stable business environment
- Business continued to stage and encouraging recovery and has almost scaled up to last year's qiarter level
- An improved customer buying sentiment continued in Q3 supported by more stable business environment
- Casflows remain stable
- Revenue from operations recovered 90.9%
- Ebitda was Rs. 81.56 crores. Driven by improved profitability across all segments
- Tax expense was Rs. 12.96 crores
- Net profit grew 86% compared to last year quarter.
- Rs. 3157.9 crore: order book
- Revenue from operations recovered 90.9%
- Ebitda was Rs. 81.56 crores. Driven by improved profitability across all segments
- Tax expense was Rs. 12.96 crores
- Net profit grew 86% compared to last year quarter.
- Rs. 3157.9 crore: order book
- Total capital employed has reduced as a result of the focus towards working capital efficiency.
- Net borrowing has reduced making debt to equity ratio 0.16 in Q3 FY21.
- Rs. 127.62 crores: net borrowings
- Net borrowing has reduced making debt to equity ratio 0.16 in Q3 FY21.
- Rs. 127.62 crores: net borrowings
Business highlights
1) Electro mechanical projects and commercial air-conditioning system
- Recovered to 77% compared to last year quarter.
- Order inflow: Rs. 636 crore
- Company received a prestigious order in electromechanical project
1) Electro mechanical projects and commercial air-conditioning system
- Recovered to 77% compared to last year quarter.
- Order inflow: Rs. 636 crore
- Company received a prestigious order in electromechanical project
- Continue to focus on infrastructure sector such as water distribution system and metro railwailays.
- Factories, data center and warehousing center are going to give some great opportunities in the coming quarter
- Factories, data center and warehousing center are going to give some great opportunities in the coming quarter
- Commercial air conditioning business recovered well due to good traction in the Healthcare, Pharma and industrial and government sector.
- Sector such as hotels, offices, marriage halls are likely to revive in second half of the year.
- Sector such as hotels, offices, marriage halls are likely to revive in second half of the year.
- Company is the single largest player in commercial air conditioning business.
- Major order backed in Q3 were Dmart (on all india basis), ISRO and L&T Bangalore.
- Major order backed in Q3 were Dmart (on all india basis), ISRO and L&T Bangalore.
- International demand had some good recovery especially in middle east market.
- Upcoming Dubai expo 2021 is going to provide good opportunities on construction sector.
- Continue to expand the bluestar product range and building brand awareness and visibility.
- Upcoming Dubai expo 2021 is going to provide good opportunities on construction sector.
- Continue to expand the bluestar product range and building brand awareness and visibility.
2) Unitary products
- Recovered upto to 117% compared to last year quarter
- Cost rationalization helped to achieve higher profitability.
- Increase in demand in cooling and purification business was due to festive season and improved share of billing from e-commerce.
- Recovered upto to 117% compared to last year quarter
- Cost rationalization helped to achieve higher profitability.
- Increase in demand in cooling and purification business was due to festive season and improved share of billing from e-commerce.
PLI scheme
- Company has set aside 3000 crore for finished goods which room air conditioner and 2000 crore for components.
- Company intents to participate in th scheme. It has acquired 20 acres of land.
- Company has set aside 3000 crore for finished goods which room air conditioner and 2000 crore for components.
- Company intents to participate in th scheme. It has acquired 20 acres of land.
- Company is waiting for more clarity in the specifity of the scheme.
- Some credit for the past record would be factored into.
- Some credit for the past record would be factored into.
Commercial refrigeration business
- Witnessed a good traction.
- Demand of cold room increased due to the vaccination drive.
- Company is market leader in Healthcare and pharma sector and it offer deep freezers and vaccine transporter.
- Witnessed a good traction.
- Demand of cold room increased due to the vaccination drive.
- Company is market leader in Healthcare and pharma sector and it offer deep freezers and vaccine transporter.
- Company has a know how for storage of vaccine from -2 degree to -80 degrees
- Company has received orders from govt in the augmentation of vaccine projects.
- Major order were from SK logistics and Metropollis
- Company has received orders from govt in the augmentation of vaccine projects.
- Major order were from SK logistics and Metropollis
Vaccine drive
- The company installs the cold rooms where vaccines are stored.
- The other product relates to medical refrigeration equipment, then there are Iceline refrigeration.
- The comapny has invested in State government infrastructure.
- The company installs the cold rooms where vaccines are stored.
- The other product relates to medical refrigeration equipment, then there are Iceline refrigeration.
- The comapny has invested in State government infrastructure.
- The next growth will be when the government allows privatization of vaccination programme coz then the Healthcare company will be able to directly participate.
- Increase in Raw material prices in steel and copper has led the company to increase the prices by 4-6%.
- Company is witnessing a huge investment in manufacturing sector consequent to domestic demand growth and localization under atma Nirbhar bharat programme.
- Company is witnessing a huge investment in manufacturing sector consequent to domestic demand growth and localization under atma Nirbhar bharat programme.
Cooling products
- Some dealers are stocking up their inventory levels because of upcoming summer demand.
- Company will again review the pricing of their product towards the end of march.
- Some dealers are stocking up their inventory levels because of upcoming summer demand.
- Company will again review the pricing of their product towards the end of march.
Future growth
- Growth will be sustainable, market has weathered the tough and the rough times.
- If there are no significant disruptions in next 3-6 months then the demand growth would be awesome.
- Growth will be sustainable, market has weathered the tough and the rough times.
- If there are no significant disruptions in next 3-6 months then the demand growth would be awesome.
Supply chain side
- Company is manufacturing 100% IDUs ....company has become self sufficient in IDU manufacturing.
- Company has taken care of buying requirements for Q4 in Q3 itself.
- The Q1 for orders have been placed by the company.
- Company is manufacturing 100% IDUs ....company has become self sufficient in IDU manufacturing.
- Company has taken care of buying requirements for Q4 in Q3 itself.
- The Q1 for orders have been placed by the company.
Water purifiers
- The business is going to hit breakeven level in the current year.
- The business is going to hit breakeven level in the current year.
AC business
- Market share is 13%
- No backward integration on compression side
- Ecommerce sales is close towards 6%.
- Market share is 13%
- No backward integration on compression side
- Ecommerce sales is close towards 6%.
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