Blue Star net profit at Rs 31 crore; declares record 90% dividend

Our Corporate Bureau
24 May 2003

Mumbai: Central air-conditioning and commercial refrigeration major Blue Star has reported a net profit of Rs 31.04 crore for the year ended 31 March 2003 from a total income of Rs 601.06 crore.

While the total income grew by 16 per cent, the profit before tax grew by 47 per cent, in comparison with the corresponding figures for the previous year. The provision for taxation was higher, consequent to the reduction in income tax exemption on the profits of the manufacturing plant at Dadra.

The company managed its capital well, and achieved 60-per cent reduction in interest. Also the earnings per share increased to Rs 16.79 from Rs 13.52.

The directors have recommended a normal dividend of Rs 6.50 plus a special Diamond Jubilee dividend of Rs 2.50, totalling to Rs 9 per equity share as against Rs 6.50 paid in the previous year. Blue Star has paid attractive dividends for the past 33 years, ever since it went public in 1969. Shares of Blue Star are one of the high dividend-yielding stocks, and have been attractive for long-term investors looking for consistent returns.

Blue Star is the market leader in central air-conditioning and commercial refrigeration. It also markets a wide range of products, systems and services in the field of professional electronics. Blue Star will complete 60 years in September 2003, and the company is celebrating FY 2003-04 as its Diamond Jubilee year.

During its 60 years of existence, the company has reinvented itself again and again in line with the market environment, and has emerged as the company of choice for its customers, employees and business partners. With the objective to achieve aggressive growth, the company is implementing several strategic initiatives in the areas of product innovations, information technology, channel development and brand building.