Blue Star Limited — Important, 30-01-2025: Updates

**I. Financial Highlights**

Blue Star Limited has reported a strong performance for Q3FY25, with consolidated revenue from operations rising by 25.3% to ₹2,807.36 crores compared to Q3FY24. EBITDA for the quarter improved to ₹209.38 crores, reflecting an EBITDA margin of 7.5%. The profit before tax (PBT) before exceptional items climbed 24.5% to ₹167.20 crores, while net profit surged by 31.8% to ₹132.46 crores, resulting in an earnings per share (EPS) of ₹6.44. A robust carried-forward order book of ₹6,809.99 crores showcases a growth of 12.8% year-over-year, while the net cash position decreased to ₹102 crores from ₹157 crores as of the previous year.

**II. Strategic Initiatives and Growth Drivers**

Key drivers for this growth include an expanding distribution network, increased investment in R&D and digitalization, and streamlined supply chain strategies, particularly benefitting from festive season demand in the Room AC sector.

**III. Business Developments**

In the Electro-Mechanical Projects segment, revenue increased by 32.2% to ₹1,562.41 crores, bolstered by a significant order inflow of ₹1,748.32 crores. Concurrently, the Unitary Products segment reported a 21.9% rise in revenue, attributed to outstanding performance in the Room AC market.

**IV. Market Position and Competitive Advantage**

Blue Star maintains a solid market position, especially in the Ducted System sector, where it holds a leadership role, and experiences good demand in refrigeration markets driven by new customer segment needs.

**V. Investor Implications**

The company is poised for continued growth with a positive outlook for the upcoming quarter, which may benefit from seasonal demand and governmental infrastructure spending. However, investors should remain vigilant of potential headwinds, including fluctuations in currency and material costs.