No slowdown in room AC segment, festive sales up 30%: Blue Star MD
RAC sales surged nearly 30% during the festive period compared to last year, following muted growth in the summer months. Nearly half of these sales were financed through consumer loans. For 2024-25 (FY25), the segment is expected to grow by over 25%.
Thiagarajan highlighted that improved energy efficiency, driven by the energy labelling scheme, has eased concerns about rising power bills, particularly for consumers running air conditioners for 7-8 hours daily. This has further boosted demand.
Read Here | Blue Star anticipates 15-20% growth during this festive season, says MD B Thiagarajan
He also noted that Blue Star gained significant market share during the July-September 2024 quarter. The company is targeting a 15% market share and recorded a 100-basis-point increase in the second quarter.
However, it anticipates intense competition in the third and fourth quarters.
“On the whole this year, if we gain 50 basis points market share, I would be very happy. It’s fine if we move from 13.75% to 14 or 14.25%,” he said
The commercial refrigeration segment is expected to recover in the second half of FY25. “Commercial air conditioning business which is for shop, showroom, boutiques to large spaces where we sell equipment, a commercial air conditioning that should grow over 20%, there is absolutely no doubt about that. We are sitting on huge order book.”
The company, which has a market capitalisation of ₹37,707 crore, has seen its shares rise 87% over the last year.
Also Read | Blue Star Q2 profit jumps 36%, backed by strong revenue growth
