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Blue Star May Hike Air Conditioner Prices Further

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Air conditioning and commercial refrigeration maker Blue Star Ltd has seen its consolidated net profit jump to Rs 74.35 crore in the June quarter on higher demand. Blue Star has seen strong growth on all fronts in the reported quarter with revenue jumping 87 percent versus last year. Margin has also improved to 6.2 percent but is yet to recover to the pre-COVID level.

Blue Star gfx 1 Aug5

Speaking to CNBC-TV18, Vir Advani, VC and MD at Blue Star said, “We are on track to improving margins. So we have a three-year plan that actually calls for significant margin improvement, not just 100 basis points. We were indicative that may be the near-term target.”

The company has seen volume growth in spite of cost increases, some of which have been passed on to customers.

“We did increase prices last quarter, we have not done it in quarter one. The reason for that is that we had a very significant Bureau of Energy Efficiency table change, on July one, we need to see the impact of that on the consumer,” said Advani.

“We will be reviewing pricing in the first week of September. We need to look at the inventory in the industry, we need to look at the BE table impact, and of course, where raw material prices are going.”

For the full interview, watch the accompanying video

(Edited by : Abhishek Jha)

First Published: IST

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