Group Member

Pritam Kumar (4021) Vinod Gupta (4011) Sudam Dhara (4008) Rohan Shetty (4024)

About the Company

Blue Star is India's largest central air-conditioning company.
It belongs to the consumer goods sector. It fulfils the air-conditioning needs of a large number of corporate, commercial and residential customers and has also established leadership in the field of commercial refrigeration equipment ranging from water coolers to cold storages. Blue Star primarily focuses on the corporate and commercial markets. Total Turnover : Rs. 2800 Cr

Employees: 2700+
Manufacturing Units: 7 (Thane, Dadra, Bharuch, Himachal, Wada and Ahmedabad) Offices: 30+ Dealers: 1800+

Ashok M Advani, Chairman

From the Chairmans Chair

The current chairman of the Company is Mr.Ashok M Advani. His views : The industrial economy has been slowing down for a couple of years especially in sectors such as infrastructure and capital goods. This has affected new order inflow and billings in EMPG (Electro Mechanical Projects Group) Projects and Professional Electronics & Industrial Systems. The tight liquidity conditions at the start of the year led to poor cash flow in the business, higher borrowings and increased interest cost. Due to inflationary conditions, the Company reviewed the majority of projects under execution to assess actual costs incurred and expected costs to completion. One of the bright spots of the year was the growth of the room air conditioner and refrigeration products businesses. Air conditioner market which declined by 10%, the Company showed 25% growth by successfully expanding market coverage in the residential segment and mid-sized Tier III and Tier IV towns. For room air conditioners and refrigeration products with substantial import content, the problem was compounded by the depreciation of the rupee.

From the Chairmans Chair contd..

To cope out with the uncertain environment, the Company took decisive action on multiple fronts:

They emphasised on cash management by careful control of cash outflows with obvious benefits to the balance sheet and lower interest expenses.
Price increases became unavoidable due to escalating input costs, but raising prices to maintain margins was only possible to a limited extent because of competitive pressures and customer resistance to higher prices. Employee expenses was curtailed by trimming excess headcount and outsourcing various processes in support functions like administration, warehousing and payroll. With this the Company expects to make a modest profit this year.

CATEGORIES OF SHAREHOLDERS AS ON MARCH 31, 2013

Directors & Relatives 9.04% 2.43%

Indian public 15.61%

40.07% Financial Instiutions/Banks/Mutual Funds ForeignHoldings Bodies Corporation

32.85%

Segment-Wise Revenue Break -Up

6% 35% 59%

Electro Mechanical Projects and packaged Airconditioning systems Cooling products

Professional Electronics and Industrial system

Financial Highlights
Operational & Financial Ratios: Earnings Per Share (Rs) DPS(Rs) Book NAV/Share(Rs) Performance Ratios: ROA(%) ROE(%) 2.14 10.69 -3.57 -17.02 5.75 3 54.97 -9.91 1 52.69

ROCE(%)

11.95

-1.98

Financial Highlights contd..

Parameter Sales Turnover Other Income Total Income Total Expenses Operating profit Gross Profit Interest PBT Tax Net Profit Mar'13 (Rs in Cr.) 27,670.60 363.1 28,033.70 26,680.30 1,353.40 854.8 498.6 525.9 8.6 517.3 Mar'12 (Rs in Cr.) 27,002.80 243 27,245.80 27,113.40 132.4 -570.1 702.5 -884.5 7 -891.5 Change 2.47% 49.42% 2.89% -1.60% 922.21% 249.94% -29.02% 159.46% 22.86% 158.03%

Earnings Per Share Equity Reserves Face Value

5.75 179.9 4,763.80 2

-9.91 179.9 4,559.10 2

158.02% 0.00% 4.49% 0.00%

Thank You