Blue Dart Q4 Results Review - Subdued Volumes, High ATF Prices Hurt Margins: Motilal Oswal

BQ Prime’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BQ Prime’s subscribers an opportunity to expand their understanding of companies, sectors and the economy. .Motilal Oswal Report.Blue Dart Express Ltd. reported 4% YoY revenue growth to ~Rs 12.2 billion in Q4 FY23 (our estimate: Rs 13.1 billion). Blue Dart handled 0.27 million tonnes of cargo volume (up 9.5% YoY), while realisation dropped ~5% YoY to Rs 44.5/kg during the quarter. Ebitda margin came in at 10.5% versus our estimate of 11.8%. Ebitda declined 41% YoY to Rs 1.3 billion. Adjusted profit after tax declined 48% YoY to Rs 703 million in Q4 FY23 (20% below estimate) led by weak operating performance. During FY23, Blue Dart carried 328 million shipments weighing 1.15 million tonnes. The company reported revenue of Rs 51.7 billion (up 17.3% YoY), Ebitda margin of 12.2% (down 370 bp YoY) and adjusted profit after tax of Rs 3.7 billion (down 11% YoY) in FY23. Blue Dart’s performance has been hit by subdued volumes and high aviation turbine fuel prices. While it has undertaken general price hike, the impact of the same would be visible from Q1 FY24. Further, Blue Dart is negotiating with airlines to provide discounts to compensate for the gap in pricing between Brent and global crude prices. We believe margin improvement could be gradual due to subdued volumes, current inflationary environment and start-up costs related to new aircraft additions..Click on the attachment to read the full report:.Go First Admitted To Insolvency .DISCLAIMERThis report is authored by an external party. BQ Prime does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BQ Prime..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Blue Dart Q4 Results Review - Subdued Volumes, High ATF Prices Hurt Margins: Motilal Oswal

Margins to improve with price hikes and recent correction in ATF prices.

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