BENGALURU (Reuters) – Indian courier delivery company Blue Dart Express reported a 12.8% fall in its first-quarter profit on Friday, as expenses overrode the recovery in volumes.
The company’s consolidated net profit fell to 534.2 million rupees ($6.4 million) in the April-June quarter from 612.8 million rupees a year ago. Its profit had risen 12% in the previous quarter after five straight quarters of flat or declining profit.
The total expenses rose 9.8% to 12.78 billion rupees in the quarter.
For further earnings highlights, click: (Full story)
KEY CONTEXT
Logistics companies overall have grappled with increased costs and faced tough competition, especially from the logistics arms of e-commerce services. However, they signalled a recovery in volumes in the previous quarter amid a general pickup in economic activity, while they also raised prices.
Additionally, Blue Dart added new freighters to its network, boosting its capacity and, according to analysts, leading to volume growth.
PEER COMPARISON
Valuation (next 12 Estimates Analysts’ sentiment
months) (next 12
months)
RIC PE EV/EBITD Revenue Mean # of Stock to
A growth (%) rating* analysts price
target**
Blue Dart Express 50.78 22.29 11.01 Hold 5 1.20
Delhivery 350.70 43.32 17.25 Buy 21 0.75
Container Corporation 38.43 24.38 17.48 Hold 11 1.02
of India
Mahindra Logistics 61.06 12.56 14.86 Hold 10 1.22
* 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 LSEG
— $1 = 83.6300 Indian rupees
(Reporting by Anisha Ajith in Bengaluru; Editing by Janane Venkatraman)
Disclaimer: This report is auto generated from the Reuters news service. ThePrint holds no responsibilty for its content.