India's Blue Dart Express posts rise in profit on festive demand

Blue Dart Express

24/01/2024 12:55

Jan 24 (Reuters) - Indian logistics services provider Blue Dart Express  BLDT.NS  reported a flat third-quarter
profit on Wednesday, snapping four straight quarters of profit fall, driven by festive season-induced demand recovery.
    Consolidated net profit rose to 888.9 million Indian rupees ($10.70 million) from 886.6 million rupees a year ago in
the December quarter, the Deutsche Post DHL Group-controlled company said. 
    For further results highlights, click here:  urn:newsml:reuters.com:*:nFWN3EE0VO
        
  
        KEY CONTEXT
        Logistic companies have been grappling with increased competition, slow demand and volatile air turbine fuel (ATF)
rates, which form a major part of their expenses. Freight prices continued to remain low, with demand yet to see a major
pickup.
    Blue Dart Express' market share has remained stagnant in the surface express segment, facing competition from other
players, Emkay Global analysts noted. Its premium pricing strategy has also led to the company losing market share in the
business-to-client express segment, they added.
    Rival Container Corporation of India  CCRI.NS  reported a 12% profit rise in the December quarter, supported by festive
season-induced demand. 
    
PEER COMPARISON
    
                                    Valuation (next 12    Estimates (next 12           Analysts' sentiment             
                                         months)               months)                                             
                            RIC       PE     EV/EBITDA    Revenue     Profit      Mean      # of      Stock to       Div
                                                          growth      growth    rating*   analysts      price       yield
                                                                                                      target**       (%)
 Blue Dart Express Ltd    BLDT.NS     38.59      17.55     10.56       22.44      Buy            5      0.93           0.44
 Container Corporation    CCRI.NS     35.13      21.75     14.95       17.74      Hold          12      1.12           1.28
      of India Ltd                                                                                                 
 Transport Corporation    TCIL.NS     16.45      12.04     14.15       16.01     Strong          3      0.93           0.81
      of India Ltd                                                                Buy                              
 Mahindra Logistics Ltd   MALO.NS     47.70       9.06     14.72      1447.68     Hold          10      1.14           0.58
 * Mean of analysts' ratings standardised to a scale of Strong Buy, Buy, Hold, Sell, and Strong Sell
** Ratio of the stock's last close to analysts' mean price target; a ratio above 1 means the stock is trading above the PT

OCTOBER-DECEMBER STOCK PERFORMANCE
    

    
-- All data from LSEG
    -- $1 = 83.0920 Indian rupees


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 (Reporting by Anisha Ajith in Bengaluru; Editing by Janane Venkatraman)
 ((anisha.ajith@thomsonreuters.com;))