Blue Star Limited · NSE:BLUESTARCO
Blue Star — Q1 FY19 Earnings Presentation
33 slides from Blue Star's earnings presentation, Aug 20, 2018
Slide 1: Exchange filing cover letter - Investors' Presentation
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Slide 2: Blue Star Limited Investor Presentation
Blue Star Limited Investor Presentation Aug 9, 2018 1
Slide 3: About Blue Star
About Blue Star • India’s leading air-conditioning, commercial refrigeration company and MEP contracting company • Total Revenue from Operations: ~ Rs. 4600 crores • Employee Strength: ~ 2800 • Network of 35 offices; 2200 dealers, 600 retailers • Presence in 19 international markets in the Middle Ea
Slide 4: Blue Star – Vision & Credo
Blue Star – Vision & Credo Vision : “To dream, to strive, to care and, above all to be the best in everything we do.” Credo : “I am Blue Star. I take pride in delivering a world- class customer experience.” 3
Slide 5: Governance Structure
GovernanceStructure Governance Structure Chairman Emeritus Ashok M Advani Board of Directors Suneel M Advani Vir S Advani B Thiagarajan Chairman Managing Director Joint Managing Director Sam Balsara Shailesh Haribhakti Anil Harish Shobana Kamineni Rajiv R Lulla Gurdeep Singh Dinesh Vaswani Independe
Slide 6: Business Segments
Business Segments 5
Slide 7: Segment I: Electro-Mechanical Projects and Packaged Air Conditioning Systems
Segment I Electro-Mechanical Projects and Packaged Air Conditioning Systems 6
Slide 8: Electro-Mechanical Projects
Electro-Mechanical Projects • Design, supply, installation and commissioning of • Large central air conditioning projects • Electrical projects • Plumbing projects • Fire-fighting projects • Execution of turnkey industrial projects • Our Value Proposition Superior project delivery through intelligen
Slide 9: Central AC Projects
Central AC Projects • Expertise of over seven decades in system design, contracting, installation and maintenance • Expert turnkey cooling solutions to a variety of customers in the corporate, commercial and industrial sectors • Significant market share in segments such as Industrial, Infrastructure
Slide 10: Packaged Air Conditioning Solutions
Packaged Air Conditioning Solutions • Complete range of energy-efficient packaged air conditioners and ducted split air conditioners • Inverter Ducted System , innovative new range of ducted system • VRF V Plus, the fifth generation VRF is launched which is ’ 100% Inverter-based VRF system with high
Slide 11: Central AC Products
Central AC Products • Highly efficient centrifugal chillers • AHRI-certified Configured Series- screw chillers • Flexible and energy-efficient scroll chillers • Process chillers for industrial and non-comfort cooling applications • Air cooled and water cooled variants 10
Slide 12: After Sales Service
After Sales Service • India’s largest air conditioning and refrigeration service provider, maintaining around 2 million tonnes of air conditioning and refrigeration equipment. Service reach to more than 3000 towns handling > 1 million service calls a year • ISO 9001-2015 certified • Focus on service
Slide 13: International Business
International Business • Offers AC&R products, after-sales service as well as system integration in global markets • Product portfolio includes Unitary Products, DX Commercial Products, Applied System and Refrigeration solution products • Focus on building a larger international footprint by enhanci
Slide 14: Market Opportunity
Market Opportunity The HVAC market in India is forecast to reach US$ 7.7 billion by 2022 Government propelled infrastructure investments is expected to drive growth in medium term. Sectors like Metros Rail, Healthcare, Education, Airports, Light industrial projects and commercial offices would
Slide 15: Some of our prestigious projects
Some of our prestigious projects Parliament House Delhi Metro Chhatrapati Shivaji International Airport-T2 JW Marriott 14 Microsoft Tata Steel
Slide 16: Some of our prestigious international projects
Some of our prestigious international projects AMCORP Trade Centre, Malaysia Bank of Mauritius Kuala Lumpur Grand Hyatt , Malaysia Hotel Rehabilitasi, Malaysia 15 Civil Aviation Headquarters, Oman New District Hospital, Qatar
Slide 17: Segment II: Unitary Products
Segment II Unitary Products 16
Slide 18: Room Air Conditioners
Room Air Conditioners • Installed base of over two million units • Products available in 4500 outlets in more than 650 locations across the country • Focus on inverter technology and energy efficient products • Focus on residential as well as corporate and commercial customers • Aesthetics and low n
Slide 19: Low penetrated market and growing middle class offer opportunity for growth
Low penetrated market and growing middle class purchasing power offer immense opportunity for growth… Market Size (Units in millions) – FY 18 Penetration % - FY 18 130.0 80.0 30.0% 30.0% 5.5 4.0% Global China India Global China India Future Growth Blue Star Market Share (%) Market Size (Units in mil
Slide 20: Commercial Refrigeration Products
Commercial Refrigeration Products • Wide range of commercial refrigeration equipment • Market leader in most of the segments • Products having latest technology with innovative features: – Deep Freezers – Bottle Coolers – Visi Coolers/Freezers – Storage Water Coolers/Dispensers – Bottled Water Dispe
Slide 21: Water Purifiers
Water Purifiers • Offers a stylish, premium and differentiated range of RO+UV+UF products across price points from Rs 11,000 to Rs 45,000 • Unique features such as cold and hot water, filter change alerts, aqua taste boosters and electronic dispensing • Available in over 174 towns with ~200 channel
Slide 22: Manufacturing Facilities
Manufacturing Facilities • 5 state-of-the-art, automated factories located at: – Dadra – Himachal (2 facilities) – Wada – Ahmedabad 21
Slide 23: Manufacturing Facilities
Manufacturing Facilities • Specialise in manufacturing a variety of highly engineered and custom-built products • Manufacturing footprint of 1 lakh sq. m. • Over 1125 SKUs manufactured across 21 assembly lines • Lean manufacturing and world-class practices • Wada factory certified as ‘Green factory’
Slide 24: Research & Development
Research & Development • High level of product development and testing capabilities with several patents for new breakthrough products • Department of Scientific & Industrial Research approved • Lab certification programme for facility upgradation • Enhanced capability in reliability and electronics
Slide 25: Segment III: Professional Electronics & Industrial Systems
Segment III Professional Electronics & Industrial Systems 24
Slide 26: Professional Electronics & Industrial Systems
Professional Electronics & Industrial Systems •Managed by the Company’s wholly owned subsidiary, Blue Star Engineering & Electronics Ltd •Lines of Business include: –Healthcare Systems: MRI & CT Scanner –Data Security Solutions: Payment HSM, PKI, Encryption –Infra Security System: Video Surveillance
Slide 27: Financial Performance
Financial Performance 26
Slide 28: Financial Performance – Q1 FY19
Financial Performance – Q1 FY19 Revenue * (Rs Cr) EBITDA (Rs Cr) Growth of 7% Growth of 23% 137 1405 1508 111 Q1 FY18 Q1 FY19 Q1 FY18 Q1 FY19 PBT (Rs Cr) Earnings per share (EPS) (Rs )** Growth of 20% Growth of 10% 102 112 9.5 8.0 Q1 FY18 Q1 FY19 Q1 FY18 Q1 FY19 *Prior to GST going live on July 1, 2
Slide 29: Balance Sheet indicators – Q1 FY19
Balance Sheet indicators –Q1 FY19 Net Borrowing (Rs Cr) Debt / Equity (times) 413 0.5 48 0.1 Q1 FY18 Q1 FY19 Q1 FY18 Q1 FY19 Capital Turnover (times) Return on Capital Employed (%) 5.2 4.8 24% 22% Q1 FY18 Q1 FY19 Q1 FY18 Q1 FY19 28
Slide 30: Segment 1: EMP and Packaged Air-Conditioning system
Segment 1: EMP and Packaged Air- Conditioning system Segment Revenue * (Rs Cr) Segment Results (Rs Cr) Growth of 8% Growth of 67% 40 575 619 24 Q1 FY18 Q1 FY19 Q1 FY18 Q1 FY19 Capital Employed (Rs Cr) Return on Capital Employed (%) 538 28% 25% 459 Q1 FY18 Q1 FY19 Q1 FY18 Q1 FY19 Blue Star continued
Slide 31: Segment 1: EMP and Packaged Air-Conditioning system
Segment 1: EMP and Packaged Air- Conditioning system Orders Booked Carry forward Orders (Rs Cr) (Rs Cr) Growth of 5% 1970 1874 710 623 Growth of 11% Q1 FY18 Q1 FY19 Q1 FY18 Q1 FY19 30
Slide 32: Segment 2: Unitary Products
Segment 2: Unitary Products Segment Revenue * (Rs Cr) Segment Results (Rs. Cr) Growth of 8% 831 95 95 771 Q1 FY18 Q1 FY19 Q1 FY18 Q1 FY19 Capital Employed (Rs Cr) Return on Capital Employed (%) 506 131% 52% 136 Q1 FY18 Q1 FY19 Q1 FY18 Q1 FY19 * Prior to GST going live on July 1, 2017, revenue includ
Slide 33: Thank you
vq) BLUE STAR Thank you