#SALES #GROWTH
In FY25, the revenue stood at โน5,842 cr, a growth of 20%. In cc terms, revenue was up by 21%. The growth was driven by middleware, powertrain, passenger cars & geographical growth uptick in Asia. Furthermore, growth in its strategic client accounts (Top 25) aided healthy results. TCV (new) was $925 mn, up by 18%. TCV includes the new partnership with Mercedez Benz. Revenue in FY24 was โน4,872 cr, up by 45%. Growth was broad-based across verticals, especially in the middleware, autonomous & connected vehicle domain. TCV for FY24 stood at $796 mn, down by ~20%. Deals were higher in FY23 due to $250 mn large deal with Honda. Geography wise revenue has depicted strong broad-based growth, especially led by Asia. Overall, higher efficiency, focus on strategic client accounts and improved net rate realisation led to a strong performance. In cc terms, revenue grew by 39%, v/s the management guidance of 37%. Organic growth was 32% out of the 39% total.
In FY25, the revenue stood at โน5,842 cr, a growth of 20%. In cc terms, revenue was up by 21%. The growth was driven by middleware, powertrain, passenger cars & geographical growth uptick in Asia. Furthermore, growth in its strategic client accounts (Top 25) aided healthy results. TCV (new) was $925 mn, up by 18%. TCV includes the new partnership with Mercedez Benz. Revenue in FY24 was โน4,872 cr, up by 45%. Growth was broad-based across verticals, especially in the middleware, autonomous & connected vehicle domain. TCV for FY24 stood at $796 mn, down by ~20%. Deals were higher in FY23 due to $250 mn large deal with Honda. Geography wise revenue has depicted strong broad-based growth, especially led by Asia. Overall, higher efficiency, focus on strategic client accounts and improved net rate realisation led to a strong performance. In cc terms, revenue grew by 39%, v/s the management guidance of 37%. Organic growth was 32% out of the 39% total.
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#EBITDA #GROWTH
EBITDA in FY25 was โน1,230 cr, up by 24%. Employee costs and other expenses were higher by 19% and 21%, respectively during the same period. Consistent revenue growth have aided uptick in profitability despite continued investments for growth. Additionally, higher fixed price contracts along with increased offshoring aided profitability uptick. EBITDA in FY24 stood at โน991 cr, a rise of 57% YoY. Employee expenses had risen by 44% due to higher wages along with employee additions while other expenses increased by 33%, majorly due to increased investments to scale up growth. However, higher revenue coupled with improved efficiency helped boost overall earnings.
EBITDA in FY25 was โน1,230 cr, up by 24%. Employee costs and other expenses were higher by 19% and 21%, respectively during the same period. Consistent revenue growth have aided uptick in profitability despite continued investments for growth. Additionally, higher fixed price contracts along with increased offshoring aided profitability uptick. EBITDA in FY24 stood at โน991 cr, a rise of 57% YoY. Employee expenses had risen by 44% due to higher wages along with employee additions while other expenses increased by 33%, majorly due to increased investments to scale up growth. However, higher revenue coupled with improved efficiency helped boost overall earnings.
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#PAT #GROWTH
In FY25, the PAT stood at โน837 cr, higher by ~40%. Finance costs were lower by 23% as the company continued to reduce debt of its subsidiaries while depreciation was higher by ~15%. Other income was higher by ~178% due to one-offs amounting to โน85 cr, mentioned during H1 FY25 & forex gain leading to increased profits. PAT in FY24 was โน599 cr, a rise of 56%. Finance costs witnessed a rise of 70% majorly due to expedition of debt payments. Depreciation costs were higher by 31% due to acquisition effects. Other income was also higher by ~51%. Forex gain stood at โน16.7 cr as compared to โน10 cr in FY23.
In FY25, the PAT stood at โน837 cr, higher by ~40%. Finance costs were lower by 23% as the company continued to reduce debt of its subsidiaries while depreciation was higher by ~15%. Other income was higher by ~178% due to one-offs amounting to โน85 cr, mentioned during H1 FY25 & forex gain leading to increased profits. PAT in FY24 was โน599 cr, a rise of 56%. Finance costs witnessed a rise of 70% majorly due to expedition of debt payments. Depreciation costs were higher by 31% due to acquisition effects. Other income was also higher by ~51%. Forex gain stood at โน16.7 cr as compared to โน10 cr in FY23.
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#EBITDA #MARGIN
In FY25, EBITDA margin stood at 21.1%. Despite ESOP costs, quarterly promotions and employee additions, margins expanded due to fixed cost leverage and productivity improvement along with operational efficiencies. The margin during FY24 was 20.4% as compared to 18.8% in FY23. It improved despite employee additions & certain impact of wage hikes done, majorly due to enhanced productivity and a better realized rate along with rupee appreciation. The margins were only marginally higher from the guidance of ~20%.
In FY25, EBITDA margin stood at 21.1%. Despite ESOP costs, quarterly promotions and employee additions, margins expanded due to fixed cost leverage and productivity improvement along with operational efficiencies. The margin during FY24 was 20.4% as compared to 18.8% in FY23. It improved despite employee additions & certain impact of wage hikes done, majorly due to enhanced productivity and a better realized rate along with rupee appreciation. The margins were only marginally higher from the guidance of ~20%.
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#PAT #MARGIN
In FY25, PAT margin improved to 14.3%. The healthy growth in net profit was aided by improvement in operating margins and higher other income on account of exceptional gains. Adjusting for one-time gains, margins would have been 13.1% for FY25, a growth of ~80 bps. In FY24, the margin was 12.3% as compared to 11.4% in FY23. The margins expanded majorly due to higher revenue growth & higher other income.
In FY25, PAT margin improved to 14.3%. The healthy growth in net profit was aided by improvement in operating margins and higher other income on account of exceptional gains. Adjusting for one-time gains, margins would have been 13.1% for FY25, a growth of ~80 bps. In FY24, the margin was 12.3% as compared to 11.4% in FY23. The margins expanded majorly due to higher revenue growth & higher other income.
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#ROCE
In FY25, the ratio witnessed an increase. PBIT was higher by ~37% at ~โน1,175 cr, driven by increase in operating profits. Capital employed increased by ~25%. ROCE was 43.96% in FY24. PBIT stood at โน855.3 cr while capital employed increased to โน2,577 cr.
In FY25, the ratio witnessed an increase. PBIT was higher by ~37% at ~โน1,175 cr, driven by increase in operating profits. Capital employed increased by ~25%. ROCE was 43.96% in FY24. PBIT stood at โน855.3 cr while capital employed increased to โน2,577 cr.
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#ROE
Net profit has increased by ~41%, while net worth was ~โน2,912 cr, up by 36%. Higher profits have led to an increase in ROE at ~33% during FY25. Net profit stood ar ~โน599 cr, while net worth was โน2,145.9 cr, which increased due to higher retained earnings. The ratio stood at 32% in FY24.
Net profit has increased by ~41%, while net worth was ~โน2,912 cr, up by 36%. Higher profits have led to an increase in ROE at ~33% during FY25. Net profit stood ar ~โน599 cr, while net worth was โน2,145.9 cr, which increased due to higher retained earnings. The ratio stood at 32% in FY24.
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#COMPANY #POTENTIAL
โข The global Mobility Industry continues to undergo a transformational change. Vehicle makers across passenger to commercial vehicles are investing in CASE (Connected, Autonomous, Shared and Electric) technologies to deliver and cater to the demands of the end consumers and policymakers. โข Software Defined Vehicles (SDVs) are gradually becoming the primary driver of the emerging future of mobility. Consequently, the core capabilities of OEMs, Tier 1 players and Mobility providers are rapidly shifting from mechanical hardware to electronic hardware and software. โข With the rising confluence of technology and automobiles, the vehicle software market is predicted to reach $35 billion (growing at a CAGR of 9%) by 2025. Software applications, operating systems and middleware are growing at an even faster rate, at a CAGR of 11%. Overall, the vehicle software market is expected to nearly double by 2030, fueled by the digital push among top OEMs. (Source: Automotive software and electronics 2030 by McKinsey & Company, S&P Global Mobility Report). โข In 2021, the automotive industry witnessed massive changes sparked by supply chain problems and the effects of the pandemic. In 2024, the global EV (electric vehicle) sales grew by 25% YoY to 17 million units. โข By 2030, the global automotive software and electrical and electronic components market is expected to reach $462 billion, growing at a rate of 5.5% annually.
โข The global automotive ER&D spend stood at $198 billion as of 2024 (Source: Maximize Market Research). It is expected to grow by 2032 to reach $392 billion. The top 20 ER&D spenders like Volkswagen, General Motors, Toyota, etc account for ~73% of the overall spend. In terms of geography for the automotive ER&D spend, Europe has the highest market share (~49%), followed by APAC (38%) and North America (13%). โข According to Grand View Research, the global EV market stood at $1,328 billion as of 2024 and is projected to grow at a CAGR of 32.5% from 2025 to 2030. Government policies and incentives worldwide are accelerating the adoption of Electric Vehicles. โข The SDV (software defined vehicle) market was $147 billion as of 2024 and is estimated to grow by a CAGR of ~41% by 2030. Enhanced safety & sustainability are driving the SDV industry growth by offering real-time monitoring, predictive analytics & autonomous driving capabilities. (Source: MarketsandMarkets) โข As per Gartner, by CY28, ~70% of the vehicles sold will have android automotive operating system which presently stands at less than 1%. As per McKinsey, the automotive revenue will further increase & diversify towards data driven services and on demand mobility service thus adding almost $1.5 trillion, or 30% additional revenue by CY30.
โข The global Mobility Industry continues to undergo a transformational change. Vehicle makers across passenger to commercial vehicles are investing in CASE (Connected, Autonomous, Shared and Electric) technologies to deliver and cater to the demands of the end consumers and policymakers. โข Software Defined Vehicles (SDVs) are gradually becoming the primary driver of the emerging future of mobility. Consequently, the core capabilities of OEMs, Tier 1 players and Mobility providers are rapidly shifting from mechanical hardware to electronic hardware and software. โข With the rising confluence of technology and automobiles, the vehicle software market is predicted to reach $35 billion (growing at a CAGR of 9%) by 2025. Software applications, operating systems and middleware are growing at an even faster rate, at a CAGR of 11%. Overall, the vehicle software market is expected to nearly double by 2030, fueled by the digital push among top OEMs. (Source: Automotive software and electronics 2030 by McKinsey & Company, S&P Global Mobility Report). โข In 2021, the automotive industry witnessed massive changes sparked by supply chain problems and the effects of the pandemic. In 2024, the global EV (electric vehicle) sales grew by 25% YoY to 17 million units. โข By 2030, the global automotive software and electrical and electronic components market is expected to reach $462 billion, growing at a rate of 5.5% annually.
โข The global automotive ER&D spend stood at $198 billion as of 2024 (Source: Maximize Market Research). It is expected to grow by 2032 to reach $392 billion. The top 20 ER&D spenders like Volkswagen, General Motors, Toyota, etc account for ~73% of the overall spend. In terms of geography for the automotive ER&D spend, Europe has the highest market share (~49%), followed by APAC (38%) and North America (13%). โข According to Grand View Research, the global EV market stood at $1,328 billion as of 2024 and is projected to grow at a CAGR of 32.5% from 2025 to 2030. Government policies and incentives worldwide are accelerating the adoption of Electric Vehicles. โข The SDV (software defined vehicle) market was $147 billion as of 2024 and is estimated to grow by a CAGR of ~41% by 2030. Enhanced safety & sustainability are driving the SDV industry growth by offering real-time monitoring, predictive analytics & autonomous driving capabilities. (Source: MarketsandMarkets) โข As per Gartner, by CY28, ~70% of the vehicles sold will have android automotive operating system which presently stands at less than 1%. As per McKinsey, the automotive revenue will further increase & diversify towards data driven services and on demand mobility service thus adding almost $1.5 trillion, or 30% additional revenue by CY30.
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#COMPANY #OUTLOOK
โข The elevated interest from clients in the areas of CASE (Connected, Autonomous, Shared, Electric), architectural changes, and SDVs (software define vehicle) is due to market trends and the acknowledgment of the potential value emanating from the transformation that the industry is undergoing. All of this points to robust demand over the next five-plus years. As a result of this, the company is positive about continuing the growth momentum well beyond. โข The management has avoided to provide any revenue guidance in lieu of the ongoing challenges & uncertainties. Once the picture is clearer in 1-2 quarters, they would come up with their guidance. Growth is anticipated to be broad-based in FY26, given a stable macro situation with meaningful growth to be seen in the commercial vehicle space. Additionally, growth in Asia would be driven by India, China and slightly by Japan, while South Korea would remain flattish. expansion could have an impact on these levers. โข The company intends to either maintain or increase margins and would provide guidance in the coming quarters. Positive levers like automation and AI could lead to some operating leverage while continuing investments for AI, tech, talent and market โข They believe that the uncertainty regarding tariffs would hover mostly around H1 FY26, post which the growth would accelerate as usual as they had conversed with many industry players and its clients to better gauge the sentiments. However, some of the deals won are already in transition phase thereby growth getting sustained in H1 FY26 despite uncertainty. โข Some large deals are anticipated to accelerate in the coming quarters, especially in the commercial vehicle space. Additionally, they could expect to add certain clients in the coming time. โข In terms of wage hikes, the payments would be more incentive based rather than fixed increases.
โข The elevated interest from clients in the areas of CASE (Connected, Autonomous, Shared, Electric), architectural changes, and SDVs (software define vehicle) is due to market trends and the acknowledgment of the potential value emanating from the transformation that the industry is undergoing. All of this points to robust demand over the next five-plus years. As a result of this, the company is positive about continuing the growth momentum well beyond. โข The management has avoided to provide any revenue guidance in lieu of the ongoing challenges & uncertainties. Once the picture is clearer in 1-2 quarters, they would come up with their guidance. Growth is anticipated to be broad-based in FY26, given a stable macro situation with meaningful growth to be seen in the commercial vehicle space. Additionally, growth in Asia would be driven by India, China and slightly by Japan, while South Korea would remain flattish. expansion could have an impact on these levers. โข The company intends to either maintain or increase margins and would provide guidance in the coming quarters. Positive levers like automation and AI could lead to some operating leverage while continuing investments for AI, tech, talent and market โข They believe that the uncertainty regarding tariffs would hover mostly around H1 FY26, post which the growth would accelerate as usual as they had conversed with many industry players and its clients to better gauge the sentiments. However, some of the deals won are already in transition phase thereby growth getting sustained in H1 FY26 despite uncertainty. โข Some large deals are anticipated to accelerate in the coming quarters, especially in the commercial vehicle space. Additionally, they could expect to add certain clients in the coming time. โข In terms of wage hikes, the payments would be more incentive based rather than fixed increases.
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KPIT Technologies Limited 400-550
Expected level 680
Support 272
Expected level 680
Support 272
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Blue Star Limited company details report
Blue Star Limited, incorporated in 1943, headquartered in Mumbai, is a leading heating, ventilation, air conditioning and commercial refrigeration (HVAC&R) company, and a major player in the mechanical, electrical, plumbing, and fire-fighting (MEP) space with a network of 31 offices, 7 modern manufacturing facilities โ 2 at Himachal Pradesh and one each at Dadra, Ahmedabad and 2 in Wada and one at Sri City. It has 4,120 channel partners. The Company has 7,500 stores for room ACs, packaged air conditioners, chillers, cold rooms as well as refrigeration products and systems, along with 1,172 service associates reaching out to customers in over 900 towns. The Wada plant has an installed production capacity of 3L deep freezers and 1L water coolers, while the Ahmedabad plant has a dedicated capacity for deep freezers of 1L units. The Wada plant also manufactures cold room panels, evaporating units, and condensing units. The Companyโs integrated business model of a Manufacturer; Engineering, Procurement and Construction (EPC) services provider; and an after-sales service provider; not only enables the company to offer end-to-end solutions to its customers across building, industrial, and infrastructure segments, but also facilitates delivery of these offerings in an agile manner. It exports AC&R (air conditioning & refrigeration) products and Original Equipment Manufacturing (OEM)/Original Design Manufacturing (ODM) businesses for globally recognized brands such as Danfoss and Rheem and solutions to 19 countries across the Middle East, Africa, SAARC and ASEAN regions. Through its joint ventures in Qatar and Malaysia, the company also undertakes MEP projects for residential, commercial and infrastructure in those markets. The company is a market leader in the product categories of modular cold rooms, deep freezers and storage water coolers and estimates their market share, both the residential segment and institutional segment put together, to be 14%. In volume terms they are marginally higher than 10%. It crossed ~15.7 lakh units during FY25 in RAC segment.
Blue Star Limited, incorporated in 1943, headquartered in Mumbai, is a leading heating, ventilation, air conditioning and commercial refrigeration (HVAC&R) company, and a major player in the mechanical, electrical, plumbing, and fire-fighting (MEP) space with a network of 31 offices, 7 modern manufacturing facilities โ 2 at Himachal Pradesh and one each at Dadra, Ahmedabad and 2 in Wada and one at Sri City. It has 4,120 channel partners. The Company has 7,500 stores for room ACs, packaged air conditioners, chillers, cold rooms as well as refrigeration products and systems, along with 1,172 service associates reaching out to customers in over 900 towns. The Wada plant has an installed production capacity of 3L deep freezers and 1L water coolers, while the Ahmedabad plant has a dedicated capacity for deep freezers of 1L units. The Wada plant also manufactures cold room panels, evaporating units, and condensing units. The Companyโs integrated business model of a Manufacturer; Engineering, Procurement and Construction (EPC) services provider; and an after-sales service provider; not only enables the company to offer end-to-end solutions to its customers across building, industrial, and infrastructure segments, but also facilitates delivery of these offerings in an agile manner. It exports AC&R (air conditioning & refrigeration) products and Original Equipment Manufacturing (OEM)/Original Design Manufacturing (ODM) businesses for globally recognized brands such as Danfoss and Rheem and solutions to 19 countries across the Middle East, Africa, SAARC and ASEAN regions. Through its joint ventures in Qatar and Malaysia, the company also undertakes MEP projects for residential, commercial and infrastructure in those markets. The company is a market leader in the product categories of modular cold rooms, deep freezers and storage water coolers and estimates their market share, both the residential segment and institutional segment put together, to be 14%. In volume terms they are marginally higher than 10%. It crossed ~15.7 lakh units during FY25 in RAC segment.
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Electro - Mechanical Projects and commercial air conditioning system โ This business segment covers the design,manufacturing, installation, commissioning and maintenance of central air conditioning plants, packaged/ducted systems and Variable Refrigerant Flow (VRF) systems, as well as contracting services in mechanical works, electrification, plumbing and fire-fighting, and water distribution. It also comprises after-sales services such as revamp, retrofit and upgrades, which covers a wide repertoire of operation and maintenance services for efficient functioning of electro-mechanical utilities. Unitary Products โ The company offers a wide variety of contemporary and highly energy-efficient room air conditioners for both residential as well as commercial applications. It also manufactures and markets a comprehensive range of commercial refrigeration products and cold chain equipment. Besides, the company has water purifiers, air purifiers and air coolers in its product portfolio. This segment is seasonal in nature. Professional Electronics and Industrial Systems โ Exclusive distributor in India for many internationally renowned manufacturers of professional electronic equipment & services, as well as industrial products and systems. This business is managed by the companyโs wholly owned subsidiary, Blue Star Engineering & Electronics Limited.
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#SALES #GROWTH 5 Year CAGR 13.1%
In FY24 the revenue registered were โน9,685 cr up by 21% YoY. The company sold over 1 mn units during the year. The order book for FY24 was at โน5,477 cr. In 9M FY25, the companyโs revenue grew by 25% YoY to โน7,949 cr. The carried forward order book as of 31st December 2024 increased by 12.8% YoY to โน6,810 cr. The RAC market share stood at 14%. Segment-wise, UCP (Unitary products and commercial refrigeration) grew by 27%, while PEIS (Professional electronics and industrial systems) declined by 3%. Room AC growth was driven by a strong festive season, and the commercial refrigeration business resolved regulatory challenges in water coolers and deep freezers. The EMP (Electro-Mechanical Projects and commercial air conditioning systems) business saw 26% YoY growth, with progress in factory and data center orders, although demand from commercial real estate and infrastructure was subdued.
In FY24 the revenue registered were โน9,685 cr up by 21% YoY. The company sold over 1 mn units during the year. The order book for FY24 was at โน5,477 cr. In 9M FY25, the companyโs revenue grew by 25% YoY to โน7,949 cr. The carried forward order book as of 31st December 2024 increased by 12.8% YoY to โน6,810 cr. The RAC market share stood at 14%. Segment-wise, UCP (Unitary products and commercial refrigeration) grew by 27%, while PEIS (Professional electronics and industrial systems) declined by 3%. Room AC growth was driven by a strong festive season, and the commercial refrigeration business resolved regulatory challenges in water coolers and deep freezers. The EMP (Electro-Mechanical Projects and commercial air conditioning systems) business saw 26% YoY growth, with progress in factory and data center orders, although demand from commercial real estate and infrastructure was subdued.
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#EBITDA #GROWTH 5 Year CAGR 13.9%
In FY24, the EBITDA was โน665 cr v/s โน493 cr in FY23. In 9M FY25, the EBITDA grew by 41% to โน597 cr. The major cost components are cost of material consumed, advertising and legal costs (other operating expense). Key components for manufacture of the companyโs products such as compressors, copper tubes, electronic parts, indoor units for split air conditioners and inverter drives are sourced from vendors in China and some other countries. This is mitigated by diversifying procurement sources along with backward integration at plant.
In FY24, the EBITDA was โน665 cr v/s โน493 cr in FY23. In 9M FY25, the EBITDA grew by 41% to โน597 cr. The major cost components are cost of material consumed, advertising and legal costs (other operating expense). Key components for manufacture of the companyโs products such as compressors, copper tubes, electronic parts, indoor units for split air conditioners and inverter drives are sourced from vendors in China and some other countries. This is mitigated by diversifying procurement sources along with backward integration at plant.
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#EBITDA #MARGIN
In FY24, EBITDA margin was 6.9% whereas segmental EBIT margin for Electro-Mechanical Projects and commercial air conditioning systems was 7%, Unitary products was 7.8% and for Professional electronics and industrial systems it was 14%. In 9M FY25 EBITDA margin was 7.5% but segmental EBIT margin for Electro-Mechanical Projects and commercial air conditioning systems was 8.5%, Unitary products and commercial refrigeration at 8.4% Professional electronics and industrial systems at 8.1%.
In FY24, EBITDA margin was 6.9% whereas segmental EBIT margin for Electro-Mechanical Projects and commercial air conditioning systems was 7%, Unitary products was 7.8% and for Professional electronics and industrial systems it was 14%. In 9M FY25 EBITDA margin was 7.5% but segmental EBIT margin for Electro-Mechanical Projects and commercial air conditioning systems was 8.5%, Unitary products and commercial refrigeration at 8.4% Professional electronics and industrial systems at 8.1%.
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