India's Blue Dart Express reports over 48% decline in Q1 profit

Blue Dart Express

27/07/2023 11:11

BENGALURU, July 27 (Reuters) - Indian logistics services provider Blue Dart Express  BLDT.NS  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  DPWGn.DE  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  urn:newsml:reuters.com:*:nFWN39D1KT
    
    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  MALO.NS , 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
    

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 (Reporting by Varun Vyas in Bengaluru; Editing by Varun H K)
 ((varunvyas.hebbalalu@thomsonreuters.com;))