Blue Star Ltd — Interim / Quarterly Report 2019

Nov 15, 2019

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.bluesta rindia.com

BSE Limited Phiroze Jeejeebhoy Towers, Dalal Street, Fort, Mumbai- 400 001

National Stock Exchange of India Limited Exchange Plaza, C-1, Block G, Sandra Kurla Complex, Sandra (East), Mumbai- 400 051

BSE Scrip Code: 500067

NSE Symbol : BLUESTARCO

November 15, 2019

Dear Sir I Ma'am,

Sub: Investor Update - Q2FY20

We are enclosing herewith the Investor Update for Q2FY20.

The aforesaid information is being made available on the Company's website at www.bluestarindia.com

Kindly take the same on your records.

Thanking you, Yours faithfully, For Blue Star Limited

Vijay Devadiga Company Secretary

Encl: a/a Z:(01) Blue St ar limited\2019-20\Stock Exchange Complia nces\Reg ulation ³⁰ - Information and Updates\lnvestor Update\Q2FY20- Investor Update

Registered Office: Kasturi Buildings, Mohan T Advani Chowk, Jamshedji Tata Road, Mumbai 400 020, India. T: +91 22 6665 4000 F: +91 22 6665 4152. CIN: L 28920MH 1949PLC 006870

Blue Star Limited Investor Update Q2FY20

Good morning ladies and gentlemen, this is Neeraj Basur. I am happy to share with you that Blue Star has been awarded the coveted "Golden Peacock Award for Excellence in Corporate Governance" for 2019. We at Blue Star have always endeavored to adopt and implement best-in-class governance policies and practices and this award recognizes our commitment in this regard. I will now provide you an overview of the results for Blue Star Limited for the quarter ended September 2019.

I. FINANCIAL HIGHLIGHTS FOR Q2FY20

Following are the financial highlights of the Company for the quarter ended September 30, 2019 on a consolidated basis:

• Revenue from operations for Q2FY20 was Rs 1249.47 cr as compared to Rs 1032.20 cr in Q2FY19, a growth of 21.0%.
• EBIDTA (excluding other income and finance income) for Q2FY20 was Rs 73.58 cr as compared to Rs 58.07 cr in Q2FY19, an increase of 26.7%.
• PBT before exceptional items was Rs 55.75 cr in Q2FY20 as compared to Rs 34.42 cr in Q2FY19, an increase of 62%.
• Tax expense for Q2FY20 was Rs 16.88 cr as compared to Rs 7.84 cr in Q2FY19. The Company has decided not to immediately opt for the lower rate of 22% corporate tax owing to the unavailed MAT credit to the tune of Rs 67 cr (consolidated). At the same time, we needed to account for higher tax expense during the quarter on account of increased profitability and unwinding of Deferred Tax Asset created in earlier years.
• Net profit for Q2FY20 was Rs 37.94 cr as compared to Rs 19.55 cr in Q2FY19, an increase of 94.1%.
• Carry-forward order book as at September 30, 2019 was Rs 2934.52 cr as compared to Rs 2216.63 cr as at September 30, 2018, an increase of 32.4%.
• Effective Working Capital Management enabled a significant reduction in our Capital employed to Rs 1063.49 cr as on September 30, 2019 from Rs 1267.88 cr as on September 30, 2018.
• Consequently, borrowings reduced to Rs 188.97 cr as on September 30, 2019 (debt equity ratio of 0.22) as compared to a net borrowing of Rs 463.47 cr as on September 30, 2018 (debt-equity ratio of 0.59).

II. BUSINESS HIGHLIGHTS FOR Q2FY20

Segment I: Electro-Mechanical Projects & Commercial Air Conditioning Systems

Segment I revenue was Rs 783.54 cr in Q2FY20 as compared to Rs 630.97 cr in Q2FY19, a growth of 24.2%. Segment result was Rs 44.56 cr (5.7%) in Q2FY20 as against Rs 44.75 cr (7.1%) in Q2FY19. Order inflow during the quarter was higher by 11.2% at Rs 794.35 cr as compared to an inflow of Rs 714.31 cr in Q2FY19.

1. Electro-Mechanical Projects business

In Q2FY20, order inflows from infrastructure sector continued to be impressive with the addition of Airport projects at Bangalore and Delhi. However, delays in new project approvals from financial institutions led to relatively lower order inflow in the buildings segment.

We continued to exercise caution on the pace of project execution in view of the continuing liquidity stress in the real estate and infrastructure sectors. We maintained our leadership in the Electro-Mechanical space in India.

Carried forward order book of the Electro Mechanical Projects business was Rs 2064 cr as on September 30, 2019 as compared to Rs 1512 cr as on September 30, 2018, an increase of 37%.

2. Commercial Air Conditioning Systems

Our business registered an impressive revenue growth during Q2FY20. New product launches and increased operational reach in tier–3, 4 and 5 cities helped us to gain market share in Chillers and VRF categories during the quarter. We continued to grow faster than the market and improved our market share in all the product categories.

Our newly launched products such as the next generation Inverter Ducted, Water cooled VRF, Air cooled VFD Screw Chiller and Configured Oil Free Chiller gained good traction and market acceptance.

Key segments that contributed to billing during the quarter were Industrial, Hospitals and Educational Institutions.

Major orders bagged in Q2FY20 were from JSW Steel Ltd (Bellary), Safdarjung Hospital (Delhi) and ISRO Viewing Gallery (Sriharikota).

3. International Business

Our continuous efforts to increase demand for unitary and applied products helped us bag good orders from the markets in the Middle East, Africa and SAARC countries.

With steady growth, we are also focusing on enhancing and improving our eco-friendly product standards and certifications. Our showroom in Dubai is playing a significant role in demonstrating our products lines and capabilities and help build confidence in potential customers.

Our international projects executed through the Joint Ventures at Qatar and Malaysia continued to do well.

We continued to invest in strengthening our brand in select international markets.

Segment II: Unitary Products

Segment II revenue was Rs 377.21 cr in Q2FY20 as compared to Rs 343.06 cr in Q2FY19, a growth of 10.0%. Segment result was Rs 11.96 cr (3.2%) in Q2FY20 as compared to Rs 8.20 cr (2.4%) in Q2FY19.

1. Room Air Conditioner business

After a very good Q1FY20 and late, but strong summer, Q2FY20 demand for Room Air Conditioners was good and market grew by 10%. We grew in line with the market and maintained our market share of 12.5%.

The demand was for low-end products with more than 60% emanating from tier-3, 4 and 5 markets. Further,40% of the sales was through the consumer finance route.

FY20 should be a normal growth year for the industry on the back of lower penetration. Our new brand initiatives have been well received by the trade and should support our growth plans for FY20 and the next summer season.

2. Commercial Refrigeration business

Revenue growth in Q2FY20 was contributed by increased billing across all categories. We continued to perform well in the processed foods, ice cream, hospitality, and dairy segments and maintained leadership position across the product categories. Our new lines of businesses also started gaining good traction in the market with orders from several reputed brands.

Major orders bagged in Q2FY20 were from Shell, Swiggy, Hatsun and Havmor.

3. Water Purifier business

We continued to grow in line with the market growth and maintained our market share. Total installed base of our Water Purifiers crossed one lakh units during the quarter. We will continue to make investments in branding and marketing initiatives both in the digital and print mediums to achieve the targeted growth and market share.

Segment III: Professional Electronics and Industrial Systems

Segment III revenue was Rs 88.72 cr in Q2FY20 as compared to Rs 58.17 cr in Q2FY19, a growth of

52.5%. Segment result was Rs 24.43 cr (27.5%) in Q2FY20 as compared to Rs 12.56 cr (21.6%) in Q2FY19.

Revenue and profit growth was majorly contributed by receipt of multiple high value orders of Data Security Solution and Non-Destructive Testing businesses. Growth potential in the Indian digital payment sector continues to offer growth opportunities for our Data Security Solutions business. On the other hand, automotive capex has been muted.

During the quarter, large orders were received from Honda Motorcycle and Scooter India and Welspun Corp Limited.

III. BUSINESS OUTLOOK

Though the order book is healthy, project execution pace has not picked up and credit flow in the real estate and infrastructure sectors remains a constraint. Low penetration coupled with increasing demand from Tier-3, 4 and 5 towns will continue to support growth in the products business.

We will stay focused on driving revenue growth and profitability with a close watch on margins, cash flow and capital employed.

With that ladies and gentlemen, I am done with the opening remarks. I would like to now pass it back to moderator, who will open up floor to questions. I will try and answer as many questions as I can. To the extent I am unable to, we will get back to you via e-mail.

With that, we are open for questions.

Ending remarks: Thank you very much, Ladies and Gentlemen. With this, we conclude this quarter's earning call. Do feel free to revert to us in case any of your questions were not fully answered and we will be happy to provide you additional details by email or in person.

For more information contact

Neeraj Basur	Sudhir Shetty
Blue Star Limited	Adfactors PR Pvt. Limited
Tel: 022-6654 4000	Tel: 022-6754 4444
neerajbasur@bluestarindia.com	sudhir.shetty@adfactorspr.com

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 relating to these statements include, but are not limited to, risks and uncertainties regarding fiscal policy, competition, inflationary pressures and general economic conditions affecting our industry. The Company does not undertake to update any forward-looking statement that may be made from time to time by or on behalf of the Company.

BLUE STAR LIMITED Registered Office : Kasturi Buildings, Mohan T. Advani Chowk, Jamshedji Tata Road, Mumbai 400 020, CIN No.: L28920MH1949PLC006870, Telephone No +91 22 6665 4000, Fax No. +91 22 6665 4152 UNAUDITED STANDALONE FINANCIAL RESULTS FOR THE QUARTER AND HALF YEAR ENDED SEPTEMBER 30, 2019

							₹ in Crores
SR. NO	PARTICULARS	QUARTER ENDED (UNAUDITED)	QUARTER ENDED (UNAUDITED)	QUARTER ENDED (UNAUDITED)	HALF YEAR ENDED (UNAUDITED)	HALF YEAR ENDED (UNAUDITED)	YEAR ENDED (AUDITED)
		30.9.19	30.6.19	30.9.18	30.9.19	30.9.18	31.3.19
	Revenue from operations	1,056.23	1,470.67	922.84	2,526.90	2,305.77	4,783.70
	Other Income	9.49	23.61	4.91	33.10	8.04	23.11
1	Total Income	1,065.72	1,494.28	927.75	2,560.00	2,313.81	4,806.81
2	Expenses
	a) Cost of materials consumed (including direct project cost)	643.95	725.74	523.25	1,369.69	1,081.98	2,638.31
	b) Purchase of Stock in trade	107.18	206.63	95.50	313.81	376.31	790.74
	c) Changes in Inventories of Finished Goods, Work-in progress and Stock-in-Trade	41.87	174.35	71.11	216.22	259.24	166.99
	d) Employee Benefits Expense	103.89	97.94	93.54	201.83	181.38	372.69
	e) Depreciation and Amortisation Expense	20.80	19.66	15.58	40.46	30.38	69.18
	f) Finance Cost	7.37	8.68	10.61	16.05	21.54	44.92
	g) Other Expenses	116.38	156.44	93.51	272.82	235.42	517.68
	Total Expenses	1,041.44	1,389.44	903.10	2,430.88	2,186.25	4,600.51
3	Profit from Operations before Exceptional Items (1-2)	24.28	104.84	24.65	129.12	127.56	206.30
4	Exceptional Items	(1.71)	-	(2.72)	(1.71)	12.46	(26.45)
5	Profit before Tax (3+4)	22.57	104.84	21.93	127.41	140.02	179.85
6	Tax Expense
	i) Current tax	6.98	31.67	5.59	38.65	18.81	30.72
	ii) Deferred tax	2.80	(1.06)	1.94	1.74	21.00	27.34
	Total Tax Expense	9.78	30.61	7.53	40.39	39.81	58.06
7	Net Profit after Tax (5-6)	12.79	74.23	14.40	87.02	100.21	121.79
	Other Comprehensive Income
	Items that will not be reclassified to profit or loss	(0.77)	(0.12)	(0.67)	(0.89)	(1.00)	(2.89)
8	Other Comprehensive Income, net of tax	(0.77)	(0.12)	(0.67)	(0.89)	(1.00)	(2.89)
9	Total Comprehensive Income for the period (7+8)	12.02	74.11	13.73	86.13	99.21	118.90
	10 Paid Up Equity Share Capital (Face Value of the share ₹2/-	19.26	19.26	19.26	19.26	19.26	19.26
	each) 11 Reserves excluding Revaluation Reserve as per balance
	sheet of previous accounting year						941.74
	12 Earnings Per Share (EPS) (in ₹) (not annualised) a) Basic	1.33	7.71	1.50	9.04	10.43	12.66
	b) Diluted	1.33	7.71	1.50	9.04	10.42	12.65

NOTES:

1 The Audit Committee has reviewed the above results and the Board of Directors has approved the above results at their respective meetings held on November 13, 2019.

2 Exceptional Items for respective quarters and year ended are:

PARTICULARS	QUARTER ENDED (UNAUDITED)	QUARTER ENDED (UNAUDITED)	QUARTER ENDED (UNAUDITED)	HALF YEAR ENDED (UNAUDITED)	HALF YEAR ENDED (UNAUDITED)	YEAR ENDED (AUDITED)
	30.9.19	30.6.19	30.9.18	30.9.19	30.9.18	31.3.19
Profit on sale of Property, Plant and Equipment	-	-	-	-	15.18	15.18
Platinum Jubliee Expenses*	(1.71)	-	(2.72)	(1.71)	(2.72)	(12.50)
Provision for financial obligation and impairement of investment in					-	(29.13)
joint venture
Total	(1.71)	-	(2.72)	(1.71)	12.46	(26.45)

* The Company commenced its Platinum Jubilee year on September 27, 2018. To mark the momentous milestone the Company had, throughout the year, held various events and programmes, run special media campaigns and printed special publications. Owing to the singular frequency of costs related to the milestone, such costs are recognised as exceptional

3 Effective April 1, 2019, the Company has adopted Ind AS 116 "Leases" and capitalised assets taken on operating lease. The transition was effected using the "modified retrospective method" and therefore comparatives have not been restated. The opening Retained Earnings have been debited by ₹ 4.28 crore (net of tax). The impact on the profit for the quarter and half year are not material.

4 Previous period / year's figures have been regrouped / rearranged wherever necessary.

Date : November 13, 2019 Place : Mumbai

For BLUE STAR LIMITED

www.bluestarindia.com Vir S. Advani Vice Chairman and Managing Director (DIN : 01571278)

UNAUDITED STANDALONE SEGMENT WISE REVENUE, RESULTS & CAPITAL EMPLOYED FOR THE QUARTER AND HALF YEAR ENDED SEPTEMBER 30, 2019

₹ in Crores

SR. NO	PARTICULARS	QUARTER ENDED (UNAUDITED)	QUARTER ENDED (UNAUDITED)	QUARTER ENDED (UNAUDITED)	HALF YEAR ENDED (UNAUDITED)	HALF YEAR ENDED (UNAUDITED)	YEAR ENDED (AUDITED)
		30.9.19	30.6.19	30.9.18	30.9.19	30.9.18	31.3.19
I	SEGMENT REVENUE a. Electro- Mechanical Projects and Commercial Air Conditioning Systems b. Unitary Products c. Professional Electronics and Industrial Systems	678.96 377.22 0.05	563.52 906.90 0.25	579.78 343.05 0.01	1,242.48 1,284.12 0.30	1,131.26 1,173.87 0.64	2,513.35 2,269.67 0.68
	TOTAL SEGMENT REVENUE	1,056.23	1,470.67	922.84	2,526.90	2,305.77	4,783.70
II	SEGMENT RESULT PROFIT BEFORE INTEREST & TAX a. Electro- Mechanical Projects and Commercial Air Conditioning Systems	37.48	33.52	45.31	71.00	83.34	142.60
	b. Unitary Products	11.96	98.91	8.36	110.87	103.56	186.56
	c. Professional Electronics and Industrial Systems	(0.13)	0.05	(0.04)	(0.08)	0.03	(0.80)
	TOTAL SEGMENT RESULT	49.31	132.48	53.63	181.79	186.93	328.36
	Less: i) Interest and Other Financial Charges ii) Un-allocable Expenditure	7.37 17.66	8.68 18.96	10.61 18.37	16.05 36.62	21.54 37.83	44.92 77.14
	TOTAL PROFIT BEFORE TAXATION AND EXCEPTIONAL ITEM	24.28	104.84	24.65	129.12	127.56	206.30
	Exceptional items	(1.71)	-	(2.72)	(1.71)	12.46	(26.45)
	PROFIT BEFORE TAXATION	22.57	104.84	21.93	127.41	140.02	179.85
III	SEGMENT ASSETS a. Electro- Mechanical Projects and Commercial Air Conditioning Systems b. Unitary Products c. Professional Electronics and Industrial Systems d. Un-allocable Corporate Assets TOTAL SEGMENT ASSETS	1,500.62 727.04 1.89 625.80 2,855.35	1,463.94 818.20 1.92 599.44 2,883.50	1,394.47 860.18 2.49 541.13 2,798.27	1,500.62 727.04 1.89 625.80 2,855.35	1,394.47 860.18 2.49 541.13 2,798.27	1,547.06 1,188.54 1.90 502.16 3,239.66
IV	SEGMENT LIABILITIES a. Electro- Mechanical Projects and Commercial Air Conditioning Systems b. Unitary Products c. Professional Electronics and Industrial Systems d. Un-allocable Corporate Liabilities TOTAL SEGMENT LIABILITIES	999.84 396.46 1.21 531.03 1,928.54	943.71 588.70 1.09 319.42 1,852.92	876.97 365.60 0.38 613.99 1,856.94	999.84 396.46 1.21 531.03 1,928.54	876.97 365.60 0.38 613.99 1,856.94	1,080.47 719.54 0.79 477.86 2,278.66
V	CAPITAL EMPLOYED (Segment Assets - Segment Liabilities)
	a. Electro- Mechanical Projects and Commercial Air Conditioning Systems	500.78 330.58	520.23 229.50	517.50 494.58	500.78 330.58	517.50 494.58	466.59 469.00
	b. Unitary Products c. Professional Electronics and Industrial Systems	0.68	0.83	2.11	0.68	2.11	1.11
	d. Un-allocable Corporate Assets less Liabilities	94.77	280.02	(72.86)	94.77	(72.86)	24.30
	TOTAL CAPITAL EMPLOYED IN THE COMPANY	926.81	1,030.58	941.33	926.81	941.33	961.00

Note :

1 Based on the "management approach" as defined in Ind AS 108-Operating Segments, the Chief Operating Decision Maker evaluates the Company's performance and allocates resources based on an analysis of various performance indicators by business segments. Accordingly, information has been presented along these business segments.

2 Unitary product segment is seasonal in nature.

3 Previous period / year's figures have been regrouped / rearranged wherever necessary.

For BLUE STAR LIMITED

Date : November 13, 2019

Place : Mumbai

Vice Chairman and Managing Director (DIN : 01571278) Vir S. Advani

STANDALONE STATEMENT OF ASSETS AND LIABILITIES AS AT SEPTEMBER 30, 2019

			₹ in Crores
SR.		AS AT	AS AT
NO	PARTICULARS	(UNAUDITED)	(AUDITED)
		30.9.19	31.3.19
A	ASSETS
	1. Non-Current Assets
	(a) Property Plant and Equipment	254.09	256.18
	(b) Right-of-use assets *	58.39	-
	(c) Capital Work in Progress	32.43	30.77
	(d) Investment Property	51.33	52.85
	(e) Intangible Assets	50.83	50.30
	(f) Intangible Assets under development	10.47	10.28
	(g) Financial Assets
	- Investments	220.88	220.88
	- Loans - Other Financial Assets	22.52 3.42	21.77 3.92
	(h) Income tax Asset (Net)	55.58	46.50
	(i) Deferred Tax Assets (Net)	78.50	77.94
	(j) Other non current assets	56.68	53.05
	Total - Non Current Assets	895.12	824.44
	2. Current Assets
	(a) Inventories	573.04	857.75
	(b) Financial Assets
	-Investments	9.50	-
	-Loans -Trade Receivables	10.64 738.32	9.91 1,015.95
	-Cash and cash equivalents	90.24	21.79
	-Other bank balances	6.55	5.62
	-Other Financial Assets	0.63	0.67
	(c) Other Current Assets	531.22	503.39
	Asset held for sale	0.09	0.14
	Total Current Assets	1,960.23	2,415.22
	TOTAL - ASSETS	2,855.35	3,239.66
B	EQUITY AND LIABILITIES 1. Equity
	(a) Equity Share Capital	19.26	19.26
	(b) Other Equity	907.55	941.74
	Total Equity	926.81	961.00
	2. Non-Current Liabilities
	(a) Financial Liabilities
	- Borrowings - Lease Liability *	48.13 41.63	- -
	-Other Financial Liabilities	0.08	0.05
	(b) Provisions	11.33	11.50
	(c) Government Grants	10.44	6.45
	Total - Non-current liabilities	111.61	18.00
	3. Current Liabilities (a) Financial Liabilities
	-Borrowings	341.87	364.42
	-Trade Payables
	a. Total outstanding dues of Micro Enterprises and small enterprises	22.44	40.06
	b. Total outstanding dues of creditors other than Micro Enterprises and small
	enterprises	962.96	1,384.85
	- Lease Liability *	20.75	-
	-Other Financial Liabilities	16.95	16.72
	(b) Provisions	60.66	76.09
	(c) Government Grants	4.06	4.08
	(d) Other Current Liabilities Total - Current Liabilities	387.24 1,816.93	374.44 2,260.66
	TOTAL - EQUITY AND LIABILITIES	2,855.35	3,239.66

* Refer Note No 3 of the Unaudited Financial Results for the Quarter and Half Year ended September 30, 2019

For BLUE STAR LIMITED

Date : November 13, 2019 Place : Mumbai

Vice Chairman and Managing Director (DIN : 01571278) Vir S. Advani

CONDENSED STANDALONE CASH FLOW STATEMENT FOR THE HALF YEAR ENDED SEPTEMBER 30, 2019

₹ in Crores

PARTICULARS	UNAUDITED	UNAUDITED
	30.09.19	30.09.18
CASH FLOW FROM OPERATING ACTIVITIES
Profit before Tax	127.41	140.02
Adjustments to reconcile profit before tax to net cash flows
Profit on sale of Property, Plant and Equipment	-	(15.18)
Loss on sale of property, plant & Equipments	0.14	0.08
Depreciation/ amortization	40.46	30.38
Government Grant Income Recognised	(18.60)	(0.27)
Allowances for Bad debts and Advances written off	14.26	(2.38)
Finance Cost	16.05	21.53
Interest and Dividend Income	(8.22)	(3.60)
Others	(0.45)	(12.92)
OPERATING PROFIT BEFORE WORKING CAPITAL CHANGES	171.05	157.66
Net Increase/ (Decrease) in working capital	104.36	(226.89)
Cash generated from operations	275.41	(69.23)
Direct taxes paid (net of refunds)	(49.55)	(13.56)
Net cash flow from/ (used in) operating activities (A)	225.86	(82.79)
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of Property Plant and equipments, including CWIP and capital
advances (net of government grant)	(24.63)	(38.92)
Loan given to Joint Venture	-	(4.46)
Payment for obligation towards guarantee for Joint Venture	(19.24)	-
Proceeds from sale of Property, Plant and Equipment Investments	-	19.13
Interest received	(9.50)	-
Dividends received	5.17	3.60
Net cash flow from/ (used in) investing activities (B)	3.05 (45.15)	- (20.65)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds / (Repayment) from Borrowings (net)	(7.54)	227.26
Repayment of Lease Liabilities	(7.77)	-
Inter Corporate Deposit Received from Subidiary	35.00	-
Finance cost	(16.30)	(21.67)
Proceeds from fresh issue of Equity Capital (Including Securities Premium)	-	9.82
Dividend paid on equity shares (including Dividend Distribution Tax)	(115.65)	(115.45)
Net cash flow from/ (used in) in financing activities (C)	(112.26)	99.96
NET INCREASE/(DECREASE) IN CASH AND CASH EQUIVALENTS (A + B + C)
Cash and cash equivalents at the beginning of the Period	68.45 21.79	(3.48) 52.14
CASH AND CASH EQUIVALENTS AT THE END OF THE PERIOD	90.24	48.66

Note :

The statement of cash flows for the corresponding six months ended September 30, 2018, as reported in the accompanying Statement have been approved by the Company's Board of Directors, but have not been subjected to review.

For BLUE STAR LIMITED

Vir S. Advani Date : November 13, 2019 Vice Chairman and Managing Director Place : Mumbai (DIN : 01571278)

BLUE STAR LIMITED
Registered Office : Kasturi Buildings, Mohan T. Advani Chowk, Jamshedji Tata Road, Mumbai 400 020,
CIN No.: L28920MH1949PLC006870, Telephone No +91 22 6665 4000, Fax No. +91 22 6665 4152
UNAUDITED CONSOLIDATED FINANCIAL RESULTS FOR THE QUARTER AND HALF YEAR ENDED SEPTEMBER 30, 2019

							₹ in Crores
Sr. no.	PARTICULARS	QUARTER ENDED (UNAUDITED)	QUARTER ENDED (UNAUDITED)	QUARTER ENDED (UNAUDITED)	HALF YEAR ENDED (UNAUDITED)	HALF YEAR ENDED (UNAUDITED)	YEAR ENDED (AUDITED)
		30.9.19	30.6.19	30.9.18	30.9.19	30.9.18	31.3.19
	Revenue from operations	1,249.47	1,575.45	1,032.20	2,824.92	2,540.03	5,234.84
	Other Income	10.60	21.66	4.93	32.26	8.27	24.69
1	Total Income Expenses	1,260.07	1,597.11	1,037.13	2,857.18	2,548.30	5,259.53
2	a) Cost of materials consumed (including direct project cost)	718.38	774.17	572.01	1,492.55	1,174.20	2,801.24
	b) Purchase of Stock in trade	178.31	236.23	128.32	414.54	456.07	959.50
	c) Changes in Inventories of Finished Goods, Work-in-progress
	and Stock-in-Trade	37.38	174.08	73.46	211.46	264.98	170.44
	d) Employee Benefits Expense	119.50	114.65	103.07	234.15	205.75	421.49
	e) Depreciation and Amortisation Expense	21.64	20.32	16.91	41.96	32.98	74.90
	f) Finance Cost	6.79	8.23	11.67	15.02	23.77	47.87
	g) Other Expenses	122.32 1,204.32	161.47 1,489.15	97.27 1,002.71	283.79 2,693.47	244.30 2,402.05	535.63 5,011.07
3	Total Expenses Profit before Exceptional Items (1-2)	55.75	107.96	34.42	163.71	146.25	248.46
4	Exceptional Items	(1.71)	-	(2.72)	(1.71)	12.46	2.68
5	Profit before Tax (3+4)	54.04	107.96	31.70	162.00	158.71	251.14
6	Tax Expense
	i) Current tax	12.96	31.93	5.90	44.89	20.84	39.14
	ii) Deferred tax	9.48	0.59	1.94	10.07	21.00	10.28
	iii) MAT Credit entitlement	(5.56)	-	-	(5.56)	(1.50)	(7.43)
	Total Tax Expense	16.88	32.52	7.84	49.40	40.34	41.99
7	Net Profit after Tax (5-6)	37.16	75.44	23.86	112.60	118.37	209.15
8a	Share in Profit/(Loss) of Joint Ventures	0.93	1.48	(4.20)	2.41	(7.05)	(18.75)
8b	Profits attributable to Non-controlling interest	(0.15)	(0.08)	(0.11)	(0.23)	(0.19)	(0.34)
9	Net Profit for the Period, (7+8)	37.94	76.84	19.55	114.78	111.13	190.06
	Other Comprehensive Income, net of tax
	A. Items that will not be reclassified to profit or loss (net of tax)	(0.88)	(0.12)	(0.89)	(1.00)	(1.23)	(3.32)
	B. Items that will be reclassified to profit or loss	1.05	(0.27)	(0.24)	0.78	0.71	0.19
10	Other Comprehensive Income, net of tax	0.17	(0.39)	(1.13)	(0.22)	(0.52)	(3.13)
11	Total Comprehensive Income for the period (9+10)	38.11	76.45	18.42	114.56	110.61	186.93
14	Paid Up Equity Share Capital (Face Value of the share - Rs. 2/- each)
		19.26	19.26	19.26	19.26	19.26	19.26
15	Reserves excluding Revaluation Reserve as per balance sheet of previous accounting year						853.80
16	Earnings Per Share (EPS) (in Rs.) (not annualised)
	a) Basic	3.94	7.98	2.03	11.92	11.56	19.75
	b) Diluted	3.94	7.98	2.03	11.92	11.55	19.74

NOTES:

1 The Audit Committee has reviewed the above results and the Board of Directors has approved the above results at their respective meetings held on November 13, 2019.

2 Effective April 1, 2019, the Group has adopted Ind AS 116 "Leases" and capitalised assets taken on operating lease. The transition was effected using the "modified retrospective method" and therefore comparatives have not been restated. The opening Retained Earnings have been debited by ₹ 4.20 crore (net of tax). The impact on the profit for the quarter and half year are not material.

3 Financial Results of Blue Star Limited (Standalone Information) :

		₹ in Crores STANDALONE
		Quarter Ended Half Year Ended			Year Ended
PARTICULARS	30.9.19	30.6.19	30.9.18	30.9.19	30.9.18	31.3.19
Revenue from operations	1,056.23	1,470.67	922.84	2,526.90	2,305.77	4,783.70
Profit before tax (after exceptional item)	22.57	104.84	21.93	127.41	140.02	179.85
Profit after tax	12.79	74.23	14.40	87.02	100.21	121.79
Total comprehensive income	12.02	74.11	13.73	86.13	99.21	118.90

Exceptional Items for respective quarters and year ended are: 4						₹ in Crores
			CONSOLIDATED
	Quarter Ended		Half Year Ended		Year Ended
PARTICULARS	30.9.19	30.6.19	30.9.18	30.9.19	30.9.18	31.3.19
Profit on sale of Property, Plant and Equipment	-	-	-	-	15.18	15.18
Platinum Jubilee Expenses *	(1.71)	-	(2.72)	(1.71)	(2.72)	(12.50)
Total	(1.71)	-	(2.72)	(1.71)	12.46	2.68
5 Previous period / year's figures have been regrouped / rearranged wherever necessary. Date : November 13, 2019 Place : Mumbai						For BLUE STAR LIMITED
www.bluestarindia.com					Vice Chairman and Managing Director	Vir S. Advani (DIN : 01571278)

₹ in Crores UNAUDITED CONSOLIDATED SEGMENT WISE REVENUE, RESULTS & CAPITAL EMPLOYED FOR THE QUARTER AND HALF YEAR ENDED SEPTEMBER 30, 2019

Sr. No.	Particulars	QUARTER ENDED (UNAUDITED)	QUARTER ENDED (UNAUDITED)	QUARTER ENDED (UNAUDITED)	HALF YEAR ENDED (UNAUDITED)	HALF YEAR ENDED (UNAUDITED)	YEAR ENDED (AUDITED)
		30.9.19	30.6.19	30.9.18	30.9.19	30.9.18	31.3.19
I	SEGMENT REVENUE a. Electro- Mechanical Projects and Commercial Air Conditioning Systems b. Unitary Products	783.54 377.21	623.94 906.89	630.97 343.06	1,407.48 1,284.10	1,250.33 1,173.82	2,748.11 2,268.97
	c. Professional Electronics and Industrial Systems	88.72	44.62	58.17	133.34	115.88	217.76
	TOTAL SEGMENT REVENUE	1,249.47	1,575.45	1,032.20	2,824.92	2,540.03	5,234.84
II	SEGMENT RESULT PROFIT BEFORE INTEREST & TAX a. Electro- Mechanical Projects and Commercial Air Conditioning Systems	44.56	33.53	44.75	78.09	84.45	150.85
	b. Unitary Products	11.96	98.91	8.20	110.87	103.21	185.92
	c. Professional Electronics and Industrial Systems	24.43	4.42	12.56	28.85	20.84	43.78
	TOTAL SEGMENT RESULT Less: i) Interest and Other Financial Charges	80.95 6.79	136.86 8.23	65.51 11.67	217.81 15.02	208.50 23.77	380.55 47.87
	ii) Un-allocable Expenditure	18.41	20.67	19.42	39.08	38.48	84.22
	TOTAL PROFIT BEFORE TAXATION AND EXCEPTIONAL ITEM	55.75	107.96	34.42	163.71	146.25	248.46
	Exceptional items	(1.71)	-	(2.72)	(1.71)	12.46	2.68
	PROFIT BEFORE TAXATION	54.04	107.96	31.70	162.00	158.71	251.14
III	SEGMENT ASSETS a. Electro- Mechanical Projects and Commercial Air Conditioning Systems b. Unitary Products c. Professional Electronics and Industrial Systems d. Un-allocable Corporate Assets TOTAL SEGMENT ASSETS	1,705.34 726.97 132.23 464.44 3,028.98	1,655.92 818.13 58.49 440.96 2,973.50	1,586.56 860.18 115.04 365.85 2,927.63	1,705.34 726.97 132.23 464.44 3,028.98	1,586.56 860.18 115.04 365.85 2,927.63	1,727.75 1,188.47 57.90 376.84 3,350.96
IV	SEGMENT LIABILITIES a. Electro- Mechanical Projects and Commercial Air Conditioning Systems b. Unitary Products c. Professional Electronics and Industrial Systems d. Un-allocable Corporate Liabilities TOTAL SEGMENT LIABILITIES	1,157.24 396.64 129.21 476.35 2,159.44	1,088.98 588.88 82.89 265.83 2,026.58	1,035.51 365.68 68.93 658.86 2,128.98	1,157.24 396.64 129.21 476.35 2,159.44	1,035.51 365.68 68.93 658.86 2,128.98	1,213.19 719.68 86.13 457.07 2,476.07
V	CAPITAL EMPLOYED (Segment Assets - Segment Liabilities) a. Electro- Mechanical Projects and Commercial Air Conditioning Systems	548.10	566.94	551.05	548.10	551.05	514.56
	b. Unitary Products	330.33	229.25	494.50	330.33	494.50	468.79
	c. Professional Electronics and Industrial Systems d. Un-allocable Corporate Assets less Liabilities	3.02 (11.91)	(24.40) 175.13	46.11 (293.01)	3.02 (11.91)	46.11 (293.01)	(28.23) (80.23)
	TOTAL CAPITAL EMPLOYED IN THE COMPANY	869.54	946.92	798.65	869.54	798.65	874.89

Note :

1. Based on the "management approach" as defined in Ind AS 108-Operating Segments, the Chief Operating Decision Maker evaluates the Company's performance and allocates resources based on an analysis of various performance indicators by business segments. Accordingly, information has been presented along these business segments.

2. Unitary product segment is seasonal in nature.

3. Previous period / year's figures have been regrouped / rearranged wherever necessary.

For BLUE STAR LIMITED

Date : November 13, 2019 Place : Mumbai

Vice Chairman and Managing Director (DIN : 01571278) Vir S. Advani

BLUE STAR LIMITED CONSOLIDATED STATEMENT OF ASSETS AND LIABILITIES AS AT SEPTEMBER 30, 2019

₹ in Crores

Sr.	PARTICULARS	AS AT	AS AT
No.		(UNAUDITED)	(AUDITED)
		30.9.19	31.3.19
A	ASSETS
	1. Non-Current Assets
	(a) Property Plant and Equipment	278.94	281.46
	(b) Right-of-use assets *	55.43	-
	(c) Capital Work in Progress	32.73	30.77
	(d) Investment Property	64.77	68.42
	(e) Intangible Assets	50.85	50.32
	(f) Intangible Assets under development	10.68	10.45
	(g) Investment in Joint Venture	15.84	14.63
	(h) Financial Assets
	-Loans	20.73	19.82
	-Other Financial Assets	3.42	4.36
	(i) Income Tax Asset	51.07	46.50
	(j) Deferred Tax Assets (Net)	105.85	107.55
	(k) Other Non Current Assets	59.11	56.10
	Total - Non Current Assets	749.42	690.38
	2. Current Assets
	(a) Inventories	589.35	869.32
	(b) Financial Assets
	-Investments	9.50	-
	-Loans	12.24	11.34
	-Trade Receivables	900.54	1,112.05
	-Cash and Cash Equivalents	126.46	83.86
	-Other Bank Balances	22.11	17.08
	(c) Other Current Assets	619.27	566.79
	Asset held for sale	0.09	0.14
	Total - Current Assets	2,279.56	2,660.58
	TOTAL - ASSETS	3,028.98	3,350.96
B	EQUITY AND LIABILITIES
	1. Equity
	(a) Equity Share Capital	19.26	19.26
	(b) Other Equity	848.20	853.80
	Equity attributable to equity holders of the company	867.46	873.06
	2. Non Controlling Interest	2.08	1.83
	Total Equity	869.54	874.89
	3. Non-Current Liabilities
	(a) Financial Liabilities
	-Borrowings	55.20	8.65
	-Lease Liability *	40.06	-
	(b) Long term Provisions	11.88	12.06
	(c) Government Grant	10.44	6.45
	Total - Non-current liabilities	117.58	27.16
	4. Current Liabilities
	(a) Financial Liabilities
	-Borrowings	282.37	335.89
	-Trade Payables
	a. Total Outstanding dues of Micro Enterprises and Small Enterprises	22.44	40.06
	b. Total Outstanding dues of creditors other than Micro Enterprises and	1,130.57	1,494.56
	Small Enterprises
	-Lease Liability *	19.15	-
	-Other Financial Liabilities	20.38	19.98
	(b) Provisions	72.10	87.00
	(c) Government Grants	4.06	4.08
	(d) Income Tax Liabilities (Net)	0.68	0.98
	(e) Other Current Liabilities	490.11	466.36
	Total - Current liabilities	2,041.86	2,448.91
	TOTAL - EQUITY AND LIABILITIES	3,028.98	3,350.96

* Refer Note No 3 of the Unaudited Financial Results for the Quarter and Half Year ended September 30, 2019

For BLUE STAR LIMITED

Vir S. Advani Place : Mumbai (DIN : 01571278) Vice Chairman and Managing Director

CONDENSED CONSOLIDATED CASH FLOW STATEMENT FOR THE HALF YEAR ENDED 30 SEPTEMBER 2019

		₹ in Crores
	UNAUDITED	UNAUDITED
Particular	30.09.19	30.09.18
CASH FLOW FROM OPERATING ACTIVITIES
Profit before Tax	162.00	158.71
Adjustments to reconcile profit before tax to net cash flows
Profit on sale of property, plant and equipment	-	(15.18)
Depreciation/ amortization	41.96	32.98
Government Grant Income Recognised	(18.60)	(0.27)
Loss/(profit) on sale of fixed assets	(0.07)	0.08
Allowances for bad debts and advances written off	15.12	(2.43)
Finance cost	15.03	23.77
Interest and dividend income	(6.34)	(3.77)
Others	(2.19)	(12.90)
OPERATING PROFIT BEFORE WORKING CAPITAL CHANGES	206.91	180.99
Increase/ (Decrease) in working capital	75.59	(181.79)
Cash generated from operations	282.50	(0.80)
Direct taxes paid (net of refunds)	(52.20)	(14.56)
Net cash flow from/ (used in) operating activities (A)	230.30	(15.36)
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of Property Plant and Equipments, including CWIP and capital advances
(net of government grant)	(23.37)	(41.58)
Loan given to Joint Venture	-	(4.46)
Payment for obligation towards guarantee given for Joint Venture	(19.24)	-
Investments	(9.50)	-
Proceeds from sale of Property, Plant and Equipment	-	19.13
Interest received	5.48	3.77
Dividends received	2.06	-
Net cash flow from/ (used in) investing activities (B)	(44.57)	(23.14)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds / (Repayment) from Borrowings (net)	(5.03)	204.16
Repayment of Lease Liabilities	(7.17)	-
Finance Cost	(15.28)	(23.77)
Proceeds from fresh issue of Equity Capital (Including Securities Premium)	-	9.82
Dividend paid on equity shares (including Dividend Distribution Tax)	(115.65)	(115.45)
Net cash flow from/ (used in) in financing activities (C)	(143.13)	74.76
NET INCREASE/(DECREASE) IN CASH AND CASH EQUIVALENTS (A + B + C)	42.60	36.26
Cash and cash equivalents at the beginning of the period	83.86	71.11
CASH AND CASH EQUIVALENTS AT THE END OF THE PERIOD	126.46	107.37
Note :
The statement of cash flows for the corresponding six months ended September 30, 2018, as reported in the accompanying Statement have been approved by the Company's Board of Directors, but have not been subjected to review.
		For BLUE STAR LIMITED

Vir S. Advani Date : November 13, 2019 Vice Chairman and Managing Director Place : Mumbai (DIN : 01571278)