Blue Star flags 200 bps margin hit despite AC industry's 50% May surge
MD B. Thiagarajan says India's AC industry likely grew over 50% in May on summer demand, with Blue Star's secondary sales up 30% in April-May. But rising input and fuel costs need a 13% price hike; only 8% passed through, leaving ~200 bps margin compression this quarter. Commercial refrigeration up 15%.
Blue Star MD says India's AC industry likely grew over 50% in May on strong summer demand, but rising input costs, fuel prices and weak consumer sentiment will compress operating margins by ~200 bps as full price hikes can't be passed through.