Blue Star (BLSTR IN) has reported a decent performance in 1QFY19 with its consolidated PAT rising by 20% YoY to Rs916mn. Blended EBITDA margin improved by 163bps YoY to 9.1% with 235bps rise in project business' margin. The margin of Unitary Products (UPs) rose by 37bps to 11.4%. Revenue declined by 1% YoY to Rs15.1 bn (+7% YoY on Like-to-Like basis) due to 4% YoY decline in revenue from unitary product segment, while revenue of projects business increased by 3% YoY. The revenue of room AC business declined by 10% (vs. 13% industry degrowth) owing to low demand led by soft summer and unseasonal rains. Its order book stood at Rs21.2bn (+8%) as of 1QFY19-end. Looking ahead, the Management sees Unitary Product segment margin at 9.5%-10.5% (vs. 8.8% in FY18) led by higher realisation, better leverage for...