Blue Star Limited · NSE:BLUESTARCO
Blue Star — Q3 FY2023 Earnings Presentation
39 slides from Blue Star's earnings presentation, Jan 31, 2023
Slide 1: Covering letter to stock exchanges
January 31, 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’ Presentation f
Slide 2: Investor Presentation – Q3FY23 & 9MFY23
Blue Star Limited Investor Presentation – Q3FY23 & 9MFY23 January 31, 2023 1
Slide 3: About Blue Star
About Blue Star • India’s leading air-conditioning, commercial refrigeration and MEP contracting company • Total Revenue from Operations: ~ Rs. 6046 crores • Employee Strength: ~2700 • 7 manufacturing facilities • 31 offices; ~3950 channel partners • Present in select markets in the Middle East, Afr
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 Chairmen Emeriti 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 Anil Harish Anita Ramachandran Arvind K Singhal Rajiv R Lulla Sunaina Mu
Slide 6: Business Segments
Business Segments 5
Slide 7: Business Segments
Business Segments Electro-Mechanical Unitary Products Professional Electronics Projects (Room ACs, Air Coolers, Air and Industrial Systems & Purifiers, Water Purifiers and (Housed under a wholly Commercial Air Commercial Refrigeration owned subsidiary, Blue Star Conditioning Systems Products & Syste
Slide 8: Segment I: Electro-Mechanical Projects and Commercial Air Conditioning Systems
Segment I Electro-Mechanical Projects and Commercial Air Conditioning Systems 7
Slide 9: Electro-Mechanical Projects
Electro-Mechanical Projects • Design, engineering, procurement and execution of MEP projects in buildings (including Airports), factories (including Data centres) and infrastructure (Metro rail, Electrical substations, Railway electrification & Water MEP) segments • Large central air conditioning &
Slide 10: Commercial Air Conditioning Systems
Commercial Air Conditioning Systems • Complete range of energy-efficient Packaged and Ducted split air conditioners • Innovative New range of Packaged & Ducted Split air conditioners with Special Filters and UVGI • Innovative new generation Inverter ducted system • VRF V Plus, the fifth generation V
Slide 11: Commercial Air Conditioning Systems
Commercial Air Conditioning Systems • Highly efficient 5 Star rated Configured Oil Free chillers • Mix and Match Configured Series- Air- Cooled and Water-Cooled Screw chillers • Energy-efficient 5 Star VFD Screw Chillers • Energy-efficient 3 Star Inverter scroll chillers • Process chillers for indus
Slide 12: Commercial Air Conditioning Systems
Commercial Air Conditioning Systems • Large Capacity Mix and Match Configured Series- Screw chillers • 5th Generation Side discharge VRF 11 11
Slide 13: 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 • Backed by our value proposition “Gold Standard service delivery”, we extensively expanded our service reach to Tier 2, 3 &
Slide 14: International Business
International Business • The Company’s wholly owned subsidiary, Blue Star International FZCO at Dubai Airport Free Zone (DAFZA) Dubai manages the following in the Middle East, Africa, ASEAN and SAARC regions - – Air Conditioning and Refrigeration products, installations and services – Product portfo
Slide 15: Some of our prestigious projects
Some of our prestigious projects Bangalore Metro Gift City CEAT - Nagpur TCS - Pune Chhatrapati Shivaji International Airport-T2 Parliament House 14
Slide 16: Some of our prestigious international projects
Some of our prestigious international projects HVAC works in Doha Live, Qatar Al Bayt International Stadium PAVILLION 2, BUKIT JALIL MALL, Malaysia HOSPITAL CYBERJAYA, Malaysia BB TOWER, Malaysia Bowyer Wick Office & Warehouse 15
Slide 17: Segment II: Unitary Products
Segment II Unitary Products 16
Slide 18: Room Air Conditioners
Room Air Conditioners • Wide range of highly-affordable split ACs offering state-of-the-art features and premium build quality • Installed base of over two million units. • Products available in 7500 outlets in more than 650 locations across the country. • Focus on inverter technology, energy effici
Slide 19: Low penetrated market and growing middle class purchasing power offer opportunity
Low penetrated market and growing middle class purchasing power offer immense opportunity for growth… Market Size (Units in millions) – FY22 Penetration % - FY22 140 60.0% 80 30.0% 6 7.0% Global China India Global China India Blue Star Market Share (%) 12.3% 13.0% 13.3% 12.5% 11.5% FY18 FY19 FY20 FY
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: State-of-the-Art Manufacturing Facilities
State-of-the-Art Manufacturing Facilities Himachal Pradesh 1 Himachal Pradesh 2 New world-class manufacturing facility for Room ACs at Sri City under Blue Star Climatech Limited, a wholly owned subsidiary of Blue Star Limited commenced Ahmedabad commercial production in January 2023 Dadra Second pla
Slide 22: Manufacturing Facilities
Manufacturing Facilities • Specialise in manufacturing a variety of highly engineered and custom-built products. • Manufacturing footprint of 1.3 lakh square meter. • Over 300 models manufactured across 25 product lines. • Lean manufacturing and world-class practices. • Green Building initiative - W
Slide 23: Manufacturing Facilities
Manufacturing Facilities • Automation of processes using robots and Cobots • Using Product Life Cycle Management to improve New product Introduction process • Improved efficiency of operations through Digital Work Instruction, Augmented reality, Auto guided vehicle, Additive manufacturing, Poka Yoke
Slide 24: Research & Development
Research & Development • Consistent investment in R&D to enhance company’s product offerings and technical capabilities • Focus on energy efficient and sustainable products and technologies • Cost innovation through Total Cost Management and Design to Value, initiative for highly affordable air cond
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 – Communication Systems: Satellite Tes
Slide 27: Blue Star
BLUE STAR 26
Slide 28: ESG Principles Embedded in Blue Star's Business Practices
ESG Principles Embedded in Blue Star’s Business Practices ENVIRONMENT • Industry leader in energy-efficiency for Room ACs, Deep Freezers and Screw Chillers with VFDs • Number 1 in E-Waste compliance in the Room AC industry • Part of the India-EU Climate Dialogue panel coordinated by TERI • Focus on
Slide 29: Financial Performance Q3FY23
Financial Performance Q3FY23 28
Slide 30: Financial Performance – Q3FY23
Financial Performance – Q3FY23 Revenue (Rs Cr) EBITDA (Rs Cr) Growth of 19% Growth of 16% 105 1788 1506 91 Q3FY22 Q3FY23 Q3FY22 Q3FY23 Profit before tax (Rs Cr) Earnings per share (EPS)* (Rs ) Growth of 14% Growth of 23% 80 6.06 4.94 70 Q3FY22 Q3FY23 Q3FY22 Q3FY23 *Not Annualized 29
Slide 31: Segment Performance – Q3FY23
Segment Performance – Q3FY23 Segment Revenue (Rs Cr) Segment I Segment II Segment III Growth of 21% Growth of 15% Growth of 29% 1000 702 830 610 86 67 Q3FY22 Q3FY23 Q3FY22 Q3FY23 Q3FY22 Q3FY23 Segment Result (Rs Cr) Segment I Segment II Segment III Growth of 37% Growth of 34% 72 52 52 39 13 11 Q3FY2
Slide 32: Financial Performance 9MFY23
Financial Performance 9MFY23 31
Slide 33: Financial Performance – 9MFY23
Financial Performance – 9MFY23 Revenue (Rs Cr) EBITDA (Rs Cr) Growth of 40% Growth of 54% 5335 314 3798 204 9MFY22 9MFY23 9MFY22 9MFY23 Profit before tax (Rs Cr) Earnings per share (EPS)* (Rs ) Growth of 74% Growth of 91% 18.21 238 137 9.52 9MFY22 9MFY23 9MFY22 9MFY23 *Not Annualized 32
Slide 34: Balance Sheet indicators – 9MFY23
Balance Sheet indicators – 9MFY23 Net Borrowing (Rs Cr) Net Debt / Equity (times) 0.36 396 0.18 165 9MFY22 9MFY23 9MFY22 9MFY23 Capital Turns (times) Return on Capital Employed (%) Growth of 7% 5.9 32% 30% 5.6 9MFY22 9MFY23 9MFY22 9MFY23 33
Slide 35: Segment 1: EMP and Commercial Air-Conditioning systems
Segment 1: EMP and Commercial Air-Conditioning systems Segment Revenue (Rs Cr) Segment Result (Rs Cr) Growth of 34% 2753 178 2058 119 9MFY22 9MFY23 9MFY22 9MFY23 Capital Employed (Rs Cr) Return on Capital Employed (%) 496 56% 409 38% 9MFY22 9MFY23 9MFY22 9MFY23 34
Slide 36: Segment 1: Orders Booked and Carried forward Orders
Segment 1: EMP and Commercial Air-Conditioning systems Orders Booked Carried forward Orders (Rs Cr) (Rs Cr) Growth of 92% Growth of 49% 4633 4245 3111 2213 Growth of 11% 9MFY22 9MFY23 9MFY22 9MFY23 35
Slide 37: Segment 2: Unitary Products
Segment 2: Unitary Products Segment Revenue (Rs Cr) Segment Result (Rs. Cr) Growth of 50% 2351 175 1570 84 9MFY22 9MFY23 9MFY22 9MFY23 Capital Employed (Rs Cr) Return on Capital Employed (%) 41% 34% 648 569 9MFY22 9MFY23 9MFY22 9MFY23 36
Slide 38: Segment 3: Professional Electronics & Industrial Systems
Segment 3: Professional Electronics & Industrial Systems Segment Revenue (Rs Cr) Segment Result (Rs. Cr) Growth of 36% 231 170 28 31 9MFY22 9MFY23 9MFY22 9MFY23 37
Slide 39: Thank you
Thank you 38