Shares of Blue Star Ltd surged over 9% on Tuesday to hit their highest level in 52 weeks after the consumer durables manufacturer reported solid earnings for the quarter ended September 2023 (Q2FY24). The company posted strong 20% revenue growth in the second quarter compared with a year ago on the back of strong demand from industrial areas and hospitality segments.

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Blue Star's total revenue from operations jumped to ₹1,890.4 crore in Q2FY24 compared to ₹1,576.2 crore in Q2FY23, led by its unitary cooling products (UCP) and electro-mechanical projects (EMP) divisions.

Operating profit, or earnings before interest, tax, depreciation and amortisation (EBITDA), was up 43% to ₹122.7 crore during the quarter compared with ₹85.6 crore in the year-ago period. EBITDA margins also jumped to 6.5% in Q2 FY24 from 5.4% in Q2FY23.

Blue Star’s profit after tax (PAT) or net profit grew by a sharp 66% to ₹70.8 crore in Q2FY24 from ₹42.6 crore in Q2FY23.

After the results announcement, the Blue Star stock zoomed by as much as 9.2% to trade at a new 52-week high of ₹954 apiece. Strong trading volumes were also seen, with the number of shares changing hands on BSE jumping nearly seven times by 11 AM.

While announcing the results, Blue Star management said that it witnessed renewed demand for its room air conditioners after the summer season, which was initially impacted by unseasonal rains.

The company also mentioned that demand in the UCP segment was driven by commercial refrigeration from hospitality and HORECA (hotel/restaurant/café).

Commenting on the infusion of ₹1,000 crore equity from the recently concluded qualified institutional placement (QIP) offer, Blue Star said that it intended to use the funds to accelerate its growth plans and make prudent investments in several developmental areas that will help it scale further.

Shares of Blue Star were trading 5.08% higher at ₹917.95 apiece on BSE at 11:03 AM.

(Edited by : Ajay Vaishnav)