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Blue Star Q4 Review - Result Above Expectations; Expect Margin Improvement In FY23: Nirmal Bang

Blue Star Q4 Review - Result Above Expectations; Expect Margin Improvement In FY23: Nirmal Bang

<div class="paragraphs"><p>A room AC is seen on the wall. (Source: freepik)</p></div>
A room AC is seen on the wall. (Source: freepik)

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Nirmal Bang Report

Blue Star Ltd. reported healthy consolidated revenue of Rs 22.5 billion, up 39.5% YoY (13.9%/20.4% above our/consensus estimates).

Unitary Cooling Products segment’s revenue grew by 32.3% YoY to Rs 10.3 billion.

Electro-mechanical projects segment’s revenue grew by 45.6% YoY to Rs 11.4 billion due to improvement in the overall pace of execution.

Blue Star's gross margin contracted by 130 basis points YoY to 20.6%. Ebitda margin improved by 10 bps YoY to 6.4%, above our estimate of 5.5% and nearly in line with consensus estimate.

Ebit margin for the UCP segment declined by 90 bps YoY to 7% due to continued headwinds in the form of high input costs, disruptions in international, supply chain and increased supply lead time.

Click on the attachment to read the full report:

Nirmal Bang Blue Star-Q4FY22 Result Update-9 May 2022.pdf

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