Blue Star spurts after receiving MMRCL order

MUMBAI: Blue Star rose 4.04% to Rs 785 at 13:14 IST on the BSE after the company said it was awarded a single largest order from Mumbai Metro Rail Corporation. Blue Star Wednesday said it has bagged a contract from MMRC for the tunnel ventilation system and environmental control system works for the section BKC to Mumbai Central on its Colaba-Bandra-SEEPZ, metro-3 corridor.

The scope of work includes design, manufacture, supply, installation, testing and commissioning along with other associated work, an official statement said.

A week ago, media reports suggested that the airconditioner-maker, which forayed into the water purifier business in 2016, has set a target revenue of Rs 120 crore from it during this financial year. The announcement was made during market hours today, 19 June 2019.

Meanwhile, the S&P BSE Sensex was up by 121 points, or 0.31% to 39,167.34. On the BSE, 2066 shares were traded in the counter so far compared with average daily volumes of 3008 shares in the past two weeks. The stock had hit a high of Rs 797.50 and a low of Rs 760 so far during the day. It hit a 52-week high of Rs 825 on 6 June 2019 and a 52-week low of Rs 507.30 on 23 October 2018.

Blue Star announced that Mumbai Metro Rail Corporation (MMRCL) has issued a letter of intent dated 18 June 2019 to the company for design, manufacture, supply, installation, testing and commissioning of tunnel ventilation and air conditioning system. The order is approximately valued at Rs 253 crore, subject to the definitive agreements to be executed between the company and MMRCL.

On a consolidated basis, Blue Star’s net profit rose 198.5% to Rs 82.13 crore on a 18.5% rise in the net sales to Rs 1595.84 crore in Q4 March 2019 over Q4 March 2018.

Blue Star is India’s leading air conditioning and commercial refrigeration company. The company reported a 19 per cent year-on-year (YoY) growth in consolidated revenue for the quarter ended March 31, 2019.