Blue Dart Express Ltd's Q2FY19 standalone net profit declines 48.51% yoy to Rs21.31cr : Misses Estimates

Blue Dart’s revenue in Q2FY19 grew by 13.5% yoy to Rs797.9cr vs. Rs702.8cr in Q2FY18.

Nov 01, 2018 08:11 IST India Infoline Research Team

Blue Dart Express Ltd Q2FY19

Standalone Results Q2FY19: (Rs. in cr)

Q2FY19 YoY (%)
Revenue 797.91 13.5
EBITDA 40.22 [47.6]
EBITDA Margin (%) 5 [588]
Net Profit (adjusted) 21.31 [48.5]
***EBITDA margin change is bps
Blue Dart’s revenue in Q2FY19 grew by 13.5% yoy to Rs797.9cr vs. Rs702.8cr in Q2FY18. EBITDA declined by 47.6% yoy in Q2FY19 to Rs40.2cr vs. Rs76.7cr in Q2FY18. EBITDA margin in Q2FY19 stood at 5% vs. 6.1% in Q1FY19 and 11.4% in Q2FY18. PAT declined by 48.5% yoy to Rs21.3cr in Q2FY19 vs. Rs41.4cr in Q2FY18. The decline in the profitability is primarily due to the rise in the freight handling and servicing costs and higher employee benefit expenses.

Other highlights
  • Gross margin stood at 32.5% in Q2FY19 vs. 33.7% in Q1FY19 and 37.1% in Q2FY18.
  • The drop in the gross margin reflects rise in freight handling and servicing costs, which grew by 21.9% yoy.
  • Employee benefit expenses grew by 23.1% yoy to Rs139.1cr in Q2FY19. As % of sales, employee costs stood at 17.4% in Q2FY19 vs. 14.8% in Q2FY18.
  • Total costs grew by 21% yoy which led to decline in its EBITDA margins.
  • Company has said that it has been increasing its national footprint and has been making extensive investments in infrastructure, additional manpower and has enabled revolutionised technology and automation to drive business intelligence.
  • Company is expecting to improve its market leadership in India and has launched a new state-of-the-art aviation hub in Chennai this calendar year to enable fast and efficient transfer of shipments at improved transit times.
  • Company has also informed that Charles Brewer has resigned as a Director of the Company.

Technical View:

Blue Dart Express Ltd ended at Rs. 2,805.95, up by 6.35 points or 0.23% from its previous closing of Rs. 2,799.60 on the BSE.
The scrip opened at Rs. 2,800.05 and touched a high and low of Rs. 2,836.65 and Rs. 2,780 respectively. A total of 4,080 (NSE+BSE) shares were traded on the counter. The stock traded above its 200 DMA.

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