Blue Dart Posts Disappointing Third Quarter Results

Blue Dart Express, an integrated transportation and distribution company, announced its December quarter FY14 result today (February 5, 2014) after market hours. As an expectation of a good financial performance in the quarter, the stock price closed 5.27% up at Rs 3404.5 during the today's trading session.

Against the street estimates, the company posted poor performance in Q3FY14 as compared to the last year similar period performance. Although, the net sales grew by 10% to Rs 505.4 crore, the net profit of company dropped drastically and came in at half the net profit posted in Q3FY13. Net profit in Q3FY14 stood at Rs 23 crore.

EBITDA of the company contracted by 48% on yearly basis in December quarter and dropped down to Rs 33.4 crore for Q3FY14. The primarily reason behind the fall, is the sharp rise in its major operating expense – freight, handling & servicing cost, which increased by 27% on yearly basis to Rs 361.6 crore. 

On margins front, EBITDA margin shrunk to its half at 6.6% and PAT margin lowered by 524 basis points to 4.6% in Q3FY14 as compared to Q3FY13.

Along with the result announcement, the company also declared an interim dividend of Rs 35 per equity share.