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Blue Dart Express reports over 48.4% decline in Q1 profit to Rs 62.81 cr

Aviation turbine fuel, which accounts for about 40% of operating costs for express logistics companies, corrected sequentially during the June-quarter

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Reuters Bengaluru

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BENGALURU (Reuters) - Indian logistics services provider Blue Dart Express on Thursday reported a drop in profit for the third quarter in a row, as reduced fuel costs were yet to show an impact, and demand was soft.
The Deutsche Post-controlled company posted a consolidated net profit of 621.8 million rupees ($7.6 million) in the quarter ended June 30, down 48.4% from a year ago.
For further earnings highlights, click
KEY CONTEXT
Aviation turbine fuel, which accounts for about 40% of operating costs for express logistics companies, corrected sequentially during the June-quarter.
The high prices had led to drops in profit for Blue Dart, which had about a 60% market share in the organised air express segment at the end of the last fiscal year, in the earlier two quarters.
Slowed demand within e-commerce segments have impacted logistics companies as well, with Blue Dart's peer, Mahindra Logistics, posting a loss in the April-June quarter earlier this week.
Blue Dart added two Boeing 737 aircraft in fiscal 2023 to cater to tier-II and tier-III cities, which analysts believe helps boost its volumes.
PEER COMPARISON
Valuation (next Estimates (next 12 Analysts' sentiment
12 months) months)
RIC PE EV/EBIT Revenue profit Mean # of Stock to Div
DA growth growth rating* analysts price yield
target** (%)
Blue Dart Express BLDT.NS 35.59 16.61 11.60 20.68 Buy 5 0.98 0.41
Ltd
Mahindra Logistics MALO.NS 44.42 9.64 14.61 94.76 Hold 11 0.87 0.66
Ltd
VRL Logistics Ltd VRLL.NS 27.92 13.10 18.05 -18.11 Strong 8 0.91 0.67
Buy
Container CCRI.NS 29.08 17.25 13.19 18.16 Buy 15 0.95 1.66
Corporation of India
Ltd
* The mean of analyst ratings standardised to a scale of Strong Buy, Buy, Hold, Sell, and Strong Sell
** The ratio of the stock's last close to analysts' mean price target; a ratio above 1 means the stock is trading above the PT
APRIL-JUNE STOCK PERFORMANCE
-- All data from Refinitiv
-- $1 = 81.9425 Indian rupees
 
(Reporting by Varun Vyas in Bengaluru; Editing by Varun H K)

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

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First Published: Jul 27 2023 | 6:07 PM IST

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