Blue Star reports net loss of Rs 19.6 crore in Q1 due to COVID-19

Mumbai (Maharashtra) [India], Aug 6 : Air conditioning and commercial refrigeration major Blue Star on Thursday reported a net loss Rs 19.6 crore in the first quarter of the current financial year as compared to a net profit of Rs 76.8 crore in Q1 FY20.
It said swift actions taken to reduce operating costs helped mitigate the adverse profitability impact to a large extent.
Revenue from operations plunged to Rs 626 crore for the quarter ended June 30 as compared to Rs 1,575 crore during the same period of the previous year due to economic disruption caused by the on-going Covid-19 pandemic.
Finance costs increased to Rs 18.5 crore from Rs 8.2 crore in Q1 FY20 due to additional borrowings and increased cost of funds. Earnings per share for Q1 FY21 with a face value of Rs 2 was Rs 2.04 negative vis-a-vis Rs 7.98 positive in Q1 FY20.
Blue Star raised Rs 350 crore during the quarter through the issuance of non-convertible debentures to fund working capital and to build liquidity on the balance sheet.
Consequently, net borrowings increased to Rs 428.5 crore as on June 30 as compared to a net cash balance of Rs 74 lakh last year.
"We have cut the operating costs in line with the potential revenue loss and infused capital through long-term debt to strengthen the resilience of our balance sheet," said Vice Chairman and Managing Director Vir S. Advani.