Blue Star Expects Strong Growth in Air Conditioning Market
India: Blue Star anticipates a strong fourth quarter for the air conditioning and commercial refrigeration industry. In the December quarter, its room air conditioner market share reached 14%, moving closer to its long-term target of 15% annually. Despite challenges related to liquidity and consumer spending uncertainty, demand for air conditioners remained steady, with growth in the range of 20-25%. The company reported revenue of 2,807 crore INR (USD 337 million) for the September quarter, with margins at 7.4% and a profit after tax of 132 crore INR (USD 16 million).
Blue Star is making key investments to expand production capacity. It is increasing room air conditioner manufacturing at its Sri City facility, with phase two underway and phase three planned. Additionally, it is expanding its commercial air conditioning segment by doubling the size of its Dadra factory, which produces ducted systems and heat pumps. The company remains focused on maximising returns on capital investments.
Source: CNBC