Blue Star's revenue is a miss on estimates, but the margins were salvaged due to cost-cutting.
Talking about cost-cutting, Vir Advani, VC & MD, Blue Star said, “We have managed to hold on to margins which were good in spite of price realization dropping in the market and that was supported by overheads and operating cost reduction. We have done some structural changes to our cost structure which I am confident will carry through the year and even into next year.”
“On the operations, we had a reasonably okay Q2, revenue recovered to about 72 percent compared to the same quarter last year and EBITDA recovered to 75 percent," Advani added.
Talking about the business, he said, “In our projects, business recovery is still slow, we had about 60-65 percent of last year. On the retail side, there are some green shoots for the second-quarter demand. September for the month, the recovery reached as high as 90 percent. October is also looking good and strong and therefore we are quite optimistic that we will reach about 90 percent of demand levels in Q3 and we are expecting a 100 percent recovery by Q4.”
“We are expecting to close this year with a growth in exports,” he added.
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First Published: IST