Air conditioner manufacturer Blue Star has issued a warning about slowing demand and increasing costs within the AC market. These challenges could potentially impact their future performance.
Blue Star Limited
BLUESTARCORecent Discussions
Blue Star's AC sales are expected to decrease due to the recent spike in unseasonal rainfall, but the company assures that their inventory levels remain stable and anticipates a recovery in demand soon.
Blue Star reports projected 20% revenue increase, attributed to both price adjustments and increased sales volume, despite a slow start to the summer season. According to B Thiagarajan, the delayed onset and initial challenges affected business momentum initially.
Blue Star anticipates potential growth deceleration due to heavy rainfall and ongoing tensions in the Middle East, with these factors causing increased operational costs, logistical challenges, and higher transportation expenses.
Blue Star's summer sales are off to a slow start due to a 13% price increase and reduced consumer demand attributed to inclement weather conditions, as reported by the company.
Blue Star Ltd. has reached its lowest price point in the past year at Rs 1,519.5, following five straight losses, resulting in a 12.2% drop over three days, despite momentarily reaching an intraday high of Rs 1,684.95.
Blue Star's Medical Director anticipates a significant growth of 25-30% due to the robust summer demand. Supply chain remains smooth and free of major disruptions, according to the MD.
Blue Star MD cautions potential impact of Middle East conflicts on consumer confidence and air conditioner prices. Depending on the summer season, Thiagarajan forecasts AC sales growth between 25-30%, but if not favorable, expect a more modest 15% increase.