Blue Star shares rose nearly 6% to a high of Rs 1,505 in intraday trade on Friday after the company announced strong fourth-quarter figures and a liberal bonus issue. The stock hit a fresh 52-week high of Rs 1,550 on Tuesday.
The board of directors of the company approved the distribution of bonus shares at a ratio of 1:1, that is, for every free share held on the equity record date, one share will be given. The company has not announced the record date.
Also, Blue Star posted a 3-fold increase in net profit at Rs 225.29 crore in the quarter ended March 2023 from Rs 76.27 crore in the quarter ended March 2022. Total revenue rose 16.4% YoY to Rs 2,630.48 crore.
Profits from the sale of freehold land drove the sharp increase in net sales in the fourth quarter. During the quarter, the company made a profit of Rs 170.81 crore from selling freehold land, which it has classified as an exceptional item.
Consolidated net profit rose 138.5% to Rs 400.69 crore in FY23 compared to Rs 168 crore in FY22. Operating income increased 31.6% year-on-year to Rs 7,977.32 crore.
The stock pared gains but was still up 1.2% at Rs 1,452 at 9:35 am. So far, about 10,000 shares have been traded on the counter, compared with a two-week average of nearly 6,500 shares. Meanwhile, the BSE Sensex fell 0.5% to 61,470.