Blue Star Limited · NSE:BLUESTARCO
Blue Star — Q4 FY2019 Earnings Presentation
33 slides from Blue Star's earnings presentation, May 9, 2019
Slide 1: Exchange filing cover letter: Investors' Presentation Q4 FY19
=::"'?• PLATINUM BLUE STAR 7 JUBILEE Blue Star Limited Band Box House, 4th Floor, 254 D, Dr Annie Besant Road, Worli, Mumbai 400 030, India. T : +91 22 6654 4000 F : +91 22 6654 4001 www.bluestarindia.com BSE Ltd. National Stock Exchange of India Ltd. Phiroze Jeejeebhoy Towers, Exchange Plaza, C-1 ,
Slide 2: Blue Star Limited Investor Presentation
Blue Star Limited Investor Presentation May 3, 2019 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. 5200 crores • Employee Strength: ~ 2800 • Network of 32 offices; ~ 2900 channel partners • Presence in 19 international markets in the Middle East,
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 Suneel M Advani Board of Directors Shailesh Haribhakti Vir S Advani B Thiagarajan Chairman Vice Chairman & Managing Director Managing Director Sam Balsara Rumjhum Chatterjee Anil Harish Shobana Kamineni Rajiv R Lulla Sunaina M
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: Commercial Air Conditioning business
Commercial Air Conditioning business (Central and Packaged Air Conditioning Products) • 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 • Signi
Slide 10: Commercial Air Conditioning business
Commercial Air Conditioning business • 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 hig
Slide 11: Commercial Air Conditioning business
Commercial Air Conditioning business • Highly efficient centrifugal chillers • Air Conditioning, Heating & Refrigeration Institute (AHRI) - certified Configured Series- screw chillers • Flexible and energy-efficient scroll chillers • Process chillers for industrial and non-comfort cooling applicatio
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 3700 towns handling > 1.2 million service calls a year • Runs an excellence programme titled “Gol
Slide 13: International Business
International Business • Headquartered and managed by the Company‟s wholly owned subsidiary at Dubai • Offers Air Conditioning and Refrigeration products, after-sales service as well as system integration in global markets. • Product portfolio includes Unitary products, DX Commercial, refrigeration
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 Bangalore Metro GIFT City Tata Power - HT Substation Tata Steel 14 Chhatrapati Shivaji International Airport-T2 Parliament House
Slide 16: Some of our prestigious international projects
Some of our prestigious international projects China Centre, Seeb, Oman Al Dafna West Bay, Doha Kuala Lumpur Grand Hyatt , Malaysia Polonnaruwa Auditorium, Sri lSanka Qatar University, Qatar Lexus Car Show room,DFC,Dubai
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 4800 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 purchasing power
Low penetrated market and growing middle class purchasing power offer immense opportunity for growth… Market Size (Units in millions) – FY 19 Penetration % - FY 19 140.0 60.0% 80.0 30.0% 5.5 5.0% 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 150 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 – FY19
Financial Performance – FY19 Revenue * (Rs Cr) EBITDA (Rs Cr) Growth of 15% Growth of 30% 347 5235 4541 266 FY18 FY19 FY18 FY19 PBT (Before exceptional items) (Rs Cr) Earnings per share (EPS) (Rs ) Growth of 31% 248 19.75 190 15.03 FY18 FY19 FY18 FY19 *Prior to GST going live on July 1, 2017, revenu
Slide 29: Balance Sheet indicators – FY19
Balance Sheet indicators – FY19 Net Borrowing (Rs Cr) Debt / Equity (times) 0.4 295 0.3 247 FY18 FY19 FY18 FY19 Capital Turnover (times) Return on Capital Employed (%) 30% 26% 5.3 5.3 FY18 FY19 FY18 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 18% Growth of 24% 2338 2748 151 122 FY18 FY19 FY18 FY19 Capital Employed (Rs Cr) Return on Capital Employed (%) 515 453 31% 29% FY18 FY19 FY18 FY19 Blue Star continued to maintain its dom
Slide 31: Segment 1: Orders Booked and Carry forward Orders
Segment 1: EMP and Packaged Air- Conditioning system Orders Booked Carry forward Orders (Rs Cr) (Rs Cr) Growth of 19% Growth of 22% 2952 2283 2491 1877 Growth of 11% FY18 FY19 FY18 FY19 30
Slide 32: Segment 2: Unitary Products
Segment 2: Unitary Products Segment Revenue * (Rs Cr) Segment Results (Rs. Cr) Growth of 11% Growth of 13% 186 2269 168 2005 FY18 FY19 FY18 FY19 Capital Employed (Rs Cr) Return on Capital Employed (%) 469 383 55% 44% FY18 FY19 FY18 FY19 * Prior to GST going live on July 1, 2017, revenue included exc
Slide 33: Thank you
Thank you 32