Blue Star Targets 20-25% YoY Growth In Upcoming Summer: MD B Thiagarajan
Thiagarajan said that over 65% of Blue Star's sales are taking place in Tier 3, 4, and 5 towns.
With a scorching summer ahead, home appliances maker Blue Star Ltd. is gearing up for a year-on-year growth of 20% to 25% in the season, its Managing Director B Thiagarajan told NDTV Profit on Friday.
The top executive acknowledged that replicating 2024's growth of 57% YoY was unlikely, but he remained bullish on a strong quarter-four performance.
“I am maintaining that Q4 could be another 30% to 35% growth. My estimate for summer projection on a huge base of last year could be anywhere between 20 to 25% growth over last year's summer season,” said Thiagarajan.
Thiagarajan added that over 65% of the sales are taking place in tier 3, 4, and 5 towns.
“That demand (from smaller centres) continues to be good... it may be due to the good monsoon and agricultural output. The second part is connected with consumer finance schemes. In our case, as of now, cumulatively for this year, more than 37% of the sales happened through consumer finance or credit cards, and so on,” he mentioned.
First-time purchases by the aspirational middle classes are another important factor behind increased sales. A “limited review” shows they account for over 90% of all the sales, the Blue Star MD added.
He said that entry-level products currently dominate the portfolio. “Heavy duty or WiFi-enabled products are hot and cold. These kinds of products have been steadily moving up,” he added.
Thiagarajan also noted that the prices of air conditioners are stable due to competition between manufacturers and capacity expansion in India due to the PLI scheme.
Shares of Blue Star Ltd. closed Friday's session up by 0.65% at Rs 1,938.95 apiece on the NSE in comparison to benchmark Nifty 50's decline of 1.86%.
