Air conditioner maker Blue Star reported over a twofold jump in its consolidated net profit to Rs 79.84 crore for the fourth quarter. B Thiagarajan, MD of Blue Star, spoke to CNBC-TV18 about the company’s financial performance.
“Although the room air conditioner demand picked up in end-March, it would peak in April and May. The fourth quarter’s good performance was mainly on the back of refrigeration products, electronic segment doing well and certain orders getting closed in electromechanical projects business,” Thiagarajan said on Friday.
“The air conditioner demand is good so far except in eastern regions due to rains,” said Thiagarajan, adding that the company could not pass on the price hikes entirely because of intense competition.
“However, the company did some cost control measures like rationalization of certain portfolios, redesigning products and improvement in productive”, he said.
According to Thiagarajan, “In Q1, room air conditioners should bounce back in a big way. For the first quarter of FY20, the growth should be around 20-22 percent in room AC segment. However, the air cooler segment is not seeing robust demand.”