Blue Star is very optimistic about its business-to-business (B2B) segment, which is at 92 percent of pre-COVID levels, Vir Advani, VC & MD, told CNBC-TV18.

The company reported earnings for the September-ended quarter. Revenue returned to the pre-COVID level with a strong recovery seen on a low base, but margins were under pressure due to higher input costs and logistics costs.

“We are sitting on what we believe is the beginning of a major private capex cycle. We are seeing that in customers building factories, even in real estate there is some recovery. Of course, government spending has picked up. So, we are quite optimistic that we will be fully recovered in Q3 and on a full-year basis, we should be back to pre-COVID levels,” Advani said.

Also Read: Blue Star sees demand growth despite price hikes, expects 1% impact on margin

Blue Star, said Advani, is very optimistic about the outlook on B2B. “In Q2, on a standalone basis, revenue grew about 37 percent in segment one, which is our B2B business. More importantly, it has recovered to about 92 percent of pre-COVID levels. So dramatic move-up in recovery,” he said.

On price increase, he said, “We have put in place price increases; so we increased prices by about 3 percent effective from September 1, which should help us. Therefore, going forward, demand looks good, there is a strong recovery; stronger than expected. We need to manage our cost and margins more.”

For the entire management interview, watch the video

(Edited by : Dipikka Ghosh)

First Published:Oct 29, 2021 11:10 AM IST