Bluestar Q1FY13 Result - First Cut - Microsec Research

Bluestar Ltd announced its Q1FY13 results on 31st July, 2012.

The company's result arrived much above our estimates for Q1FY12. The Company's standalone Net Sales arrived at INR723.18 crore, which decreased by 10.09% on QoQ basis, but was up by 2.84% on YoY basis. The EBITDA for the quarter was INR33.53 crore, which increased significantly from a loss of INR37.40 crores on QoQ basis. The EBITDA for the quarter was up by 21.53% on YoY basis. This was on back of controlled expenditure like reduced cost of raw materials, low employee cost, etc. The EBITDA Margin was up by 918bps on QoQ basis and 66bps on YoY basis. The net profit was surprisingly up at INR20.54 crore, which shows a staggering growth from a loss of INR45.37 crore sequentially. The net profit on YoY basis was up by 109.81% . This turnaround in the earnings was mainly because of the profit seen in its EMP&PA (Electromechanical Projects & Packaged Air-conditioning) business, which was running under loss for last 4 quarters. This business segment accounts for ~65% of the overall business. The PBIT for this business arrived at a profit of INR12.37 crore, moving up rapidly from a loss of INR54.62 crore sequentially and INR8.87 crores.

Hence, with the impressing figures for the Q1FY13, we continue a "BUY" rating on Bluestar Ltd with a target price of INR230.

Source : Equity Bulls

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