Blue Star profit falls 22% on higher costs

MUMBAI: Consumer durables firm Blue Star’s operating income grew 25% for the quarter ended September 30 at Rs 695 crore. However, despite the increase in sales, its net profit was down 22% for the quarter at Rs 38.6 crore, compared with Rs 49.5 crore a year ago, mainly because of lower gross margin, higher interest costs and taxes.

“The margins have been little down compared to the first six months of this calendar year, mainly because of comparative factors of last year. The input costs were at the lowest ever about a year back and now it’s going up,” said Satish Jamdar, managing director of Blue Star.

But the company hopes that margins will improve in the second half of this fiscal year. The company has also increased prices across a few segments.