Blue Star Grows 16 Per Cent To Cross 600 Crore Mark Declares Record 90 Per Cent Dividend

EH&C Staff - Mumbai

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

While the total income grew by 16 per cent, 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. Earnings per share increased to Rs 16.79 from Rs 13.52

Dividend
The directors have recommended a normal dividend of Rs 6.50 plus a special diamond jubilee dividend of Rs 2.50, totalling to Rs 9.00 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.

60 years
Blue Star will complete 60 years in September 2003 for which it 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.

Ashok M Advani, chairman and chief executive officer adds, “Our continued focus on our core businesses and efficient use of resources resulted in improved sales and profitability. Shareholders will be happy to note that the return on capital employed (ROCE) improved to 33 per cent from 27 per cent, while the return on shareholder’s funds (RONW) increased to 27 per cent from 25 per cent. As I have stated in the past, Blue Star’s value proposition to investors is to earn ’real’ profits to generate positive cash flows, comfortably fund the capital required for growth, pay a generous dividend and still leave a substantial cash surplus.”