Blue Dart: Q1FY14 Result Review

Logistics company Blue Dart Express (BDEL), came out with its Q1FY14 results today. The company has posted muted numbers in its first quarter of fiscal 2014. The topline grew by mere 5% to Rs 453.52 crore in the current quarter, over corresponding quarter in FY13. Its other income grew to Rs 18.48 crore in current quarter against Rs 8 crore in Q1FY13.

BDEL's operating expenses increased by 8% on a YoY basis to Rs 405 crore for Q1FY14. This rise in the operating expenses can be attributed to increase in freight, handling & service expenses followed by increase in other expenses. In the similar period in FY13, the total expenses, as a percentage of revenue stood at 86%, which has grown to 89% in current quarter.

Let us take a look at the operating profits. As the expenses witnessed a northward journey company's EBITDA declined by 16% in Q1FY14 to Rs 48.35 crore on YoY basis. The increase in freight & handling costs has impacted the operating margin by 264 basis points in the said period.

On the bottomline front the company showed a growth of just Rs 2 lakh in Q1FY14 on a YoY basis, to stand at Rs 40.65 crore. This is mainly due to good growth in other income. If we exclude the other income, the company would have posted a loss of Rs 10.44 crore, which accounts to decline of 32% on YoY basis. Moreover, BDEL's net margin declined by 45 basis points in the said quarter.

Presently, at current market price, the company is trading at a trailing 12-month PE of 37.8x. At closing, the share price is 1.34% up stood at Rs 2541.