Blue Star Limited · NSE:BLUESTARCO
Blue Star — Q4 FY2023 Earnings Presentation
28 slides from Blue Star's earnings presentation, May 5, 2023
Slide 1: Stock exchange filing cover letter
May 5, 2023 BSE Limited National Stock Exchange of India Ltd Phiroze Jeejeebhoy Towers, Exchange Plaza, C-1, Block G, Dalal Street, Bandra Kurla Complex, Bandra (East), Mumbai – 400 001 Mumbai – 400 051 BSE Scrip Code: 500067 NSE Symbol: BLUESTARCO Dear Sir/Madam, Sub: Investors’ Presentations for t
Slide 2: Earnings Presentation – Q4FY23 & FY23
Earnings Presentation – Q4FY23 & FY23 May 5, 2023
Slide 3: Safe Harbour
Safe Harbour Certain statements in this presentation concerning our future growth prospects are forward-looking statements which involve a number of risks and uncertainties that could cause actual results to differ materially from those in such forward-looking statements. The risks and uncertainties
Slide 4: Financial Highlights – Consolidated
Financial Highlights – Consolidated Revenue (Rs cr) EBITDA (Rs cr) FY23 Highlights • Ended the year on a strong note 2624 6.8% with record revenue and profits and 2254 6.3% a robust carried forward order book Growth 16% • Consolidated Total Income exceeded Rs 8,000 cr in FY23 143 179 Q4FY22 Q4FY23 Q
Slide 5: Financial Highlights – Consolidated (contd..)
Financial Highlights -- Consolidated (contd..) PBT (Before Exceptional Items) (Rs cr) PAT (Rs cr) FY23 Highlights 160 5.6% • Concluded the sale of a larger land 140 450 parcel at Thane 5.1% 5.0% 120 100 400 o Gain of Rs 170.81 cr (Net of Tax 80 Rs 139.24 cr) 60 350 o Reported as an Exceptional 40 11
Slide 6: Balance Sheet Indicators
Balance Sheet Indicators Capital Employed (Rs cr) Cash Walk FY23 (Rs cr) FY23 Highlights 1538 1088 • Higher capital employed owing to – o Investments in capacity (231) expansion projects at existing plants and the new plant at Sri City Mar'22 Mar'23 o Additional working capital to fund Net Debt/Equi
Slide 7: Business Highlights
by4| BLUE STAR Business Highlights
Slide 8: Segment 1: Electro-Mechanical Projects and Commercial Air Conditioning Systems
Segment 1: Electro-Mechanical Projects and Commercial Air Conditioning Systems Revenue (Rs cr) Result (Rs cr) FY23 Highlights • Healthy order inflows across segments 1253 120 1140 7.9% • Strong uptick in enquiries and order 100 6.7% finalisations with: 80 Growth 60 o Government’s thrust on infrastru
Slide 9: Segment 2: Unitary Products
Segment 2: Unitary Products Revenue (Rs cr) Result (Rs Cr) FY23 Highlights 1268 • Rejigged product portfolio, Total Cost 8.4% 120 Management initiatives and benefit of scale 1037 100 enabled margin improvement 80 7.0% Growth • Built manufacturing capacities to be future 60 22% ready 40 20 72 107 0 •
Slide 10: Segment 3: Professional Electronics and Industrial Systems
Segment 3: Professional Electronics and Industrial Systems Revenue (Rs cr) Result (Rs Cr) FY23 Highlights 103 25 • With the revival of private capex cycle, 19.2% revenue grew across all lines of 20 78 businesses 15 18.5% Growth 33% 10 • Apart from MedTech products and 5 solutions, demand for the non
Slide 11: Business Outlook
Business Outlook • Ended FY23 on a high note with a healthy revenue and margin profile • Intend to build on the momentum gained in order to grow the revenue and improve profitability • Focus Areas – o Continuing to invest in enhancing R&D capabilities o Total Cost Management o Further expansion of m
Slide 12: Thank You
by4| BLUE STAR Thank You 14
Slide 13: Blue Star Limited – Conference of Fund Managers and Analysts
Blue Star Limited Conference of Fund Managers and Analysts Mumbai May 5, 2023
Slide 14: Safe Harbour
Safe Harbour Certain statements in this release concerning our future growth prospects are forward-looking statements which involve a number of risks and uncertainties that could cause actual results to differ materially from those in such forward-looking statements. The risks and uncertainties rela
Slide 15: Key Performance Indicators
Key Performance Indicators Total Income (Rs in cr) EBITDA (Rs in cr) CAGR: +11% 8,008 CAGR: +9% 493 6,081 347 346 5,260 5,405 4,326 283 240 FY19 FY20 FY21 FY22 FY23 FY19 FY20 FY21 FY22 FY23 PAT (Rs in cr) Earnings Per Share (Rs per share) CAGR: +20% 401* CAGR: +20% 41.6* 190 19.8 17.4 144 168 14.9 1
Slide 16: Key Performance Indicators
Key Performance Indicators The company is in its growth phase and has consistently improved value addition to shareholders over the years Return on Capital Employed (%) Net Debt / Equity (times) 33.9 33.9 0.28 29.8 0.21 25.4 26.9 0.15 0.07 FY19 FY20 FY21 FY22 FY23 FY19 FY20 FY21 FY22 FY23 (0.17) Ret
Slide 17: The Blue Star Journey
The Blue Star Journey Started Started Went public Air conditioned manufacturing Company formed Centrifugal Dadra plant by Mohan T Advani manufacturing and Thane plant first skyscrapers Water Coolers of Mumbai Packaged Chillers inaugurated inaugurated 1943 1948 1969 1972 1985 1997 A 79-YEAR-OLD CORPO
Slide 18: Vision, Credo and The Blue Star Way
Vision, Credo and The Blue Star Way The Blue Star Way 11 core values and beliefs that guide all Blue Starites in the discharge of their roles and responsibilities 1 6
Slide 19: Balanced three-tiered Governance Structure
Balanced three-tiered Governance Structure; a firm foundation Diverse Ten Member Board (including Independent Chairman) BOARD Five Independent Three Non-Executive Two Executive Directors Directors Directors Audit Nomination Investor Risk CSR Share Transfer Executive COMMITTEES Committee and Grievanc
Slide 20: Strategic Direction – Business Segments
Strategic Direction – Business Segments The next phase of our journey… 8
Slide 21: Strategic Direction: Grow faster than the market
Strategic Direction: Grow faster than the market • Build scale by participating in and aggressively addressing the growth opportunities in HVACR products offered by aspirational Middle Class, MSMEs, Light Commercial and Tier 3-4-5 markets ▪ Air Conditioning o Launch affordable range of Room ACs, new
Slide 22: Strategic Direction: Grow faster than the market
Strategic Direction: Grow faster than the market ▪ Scale MEP Business profitably with high focus on free cash flow o Grow beyond the traditional Buildings segment, viz. Factories, Data Centres, Metro Rail, Railway Electrification, and Water o Be the Contractor of Choice through implementation of “Su
Slide 23: Strategic Direction: Profitability improvement
Strategic Direction: Profitability improvement • Drive scale and achieve operating cost leverage • Cross deploy and institutionalise Total Cost Management (TCM) culture across the businesses for acquiring cost leadership • Strengthen product innovation and identify and implement process innovation •
Slide 24: Strategic Direction: Excellence
Strategic Direction: Excellence Human Capital: Build a highly capable and engaged organization • Be the preferred employer in the HVACR Industry; GPTW Trust Index is 81 in FY23 (vs. 69 in FY16 and 75 in FY19) • Focus on Capability Building, including Leadership Development and Succession Planning •
Slide 25: Strategic Direction: Excellence
Strategic Direction: Excellence Financial Capital: Enabling sustainable profits and growth • Optimal capital allocation, value creation and financial discipline at the core • Affordable capital structure to finance investment in growth • Sustained working capital efficiencies to support growth Digit
Slide 26: Environmental Social & Governance (ESG)
Environmental Social & Governance (ESG) • Continue to remain ahead of the curve in the areas of energy efficiency, ozone depletion, global warming mitigation measures, and e-waste management • As a part of the Blue Star Net Zero Mission, map the carbon footprint across Blue Star manufacturing units
Slide 27: In conclusion…
In conclusion… • Continue to be guided by the shared Vision, Credo, and Blue Star Way • Be a globally competitive HVACR player • Profitability improvement is the most important strategic imperative • Deliver differentiated world-class products, services, and solutions to meet customer expectations a
Slide 28: Thank You
Strategic Direction Blue Star: Built to–Last, Business Built Segments on Trust Thank You 16