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Air conditioner maker Blue Star has posted a 74 per cent decline in its net profit to Rs 9.79 crore for the quarter ended June 30, 2011, against Rs 37.15 crore in the quarter ended June 30, 2010.
The company said the decline has been due to revision of the estimated cost to complete its projects.
“During the quarter, on substantial progress of certain projects, there has been a revision of estimated cost to complete resulting in a decrease in revenue and profits,” Blue Star said in a filing to the Bombay Stock Exchange.
In accordance with the established practice in relation to construction contracts, contract revenue is calculated based on the ratio of cost incurred to total estimated cost to complete the project, it said.
During the reporting quarter, the firm’s net sales stood at Rs 703.18, down 18.21 per cent from Rs 859.82 crore posted in the year-ago period.
Shares of Blue Star ended at Rs 286.25 on the BSE today, down 1.41 per cent from the previous close.
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