- 31 Oct 2022
- ICICIdirect Research
BLUEDART'S MARGIN IMPACTED BY LIKELY CHANGE IN PRODUCT MIX
BLUEDART - 8179 Change: -2.95 (-0.04 %)News:
BlueDart's Q2FY23 revenues grew 18% YoY to Rs 1325 crore, whereas its EBITDA de-grew 12% to Rs 243 crore. Subsequently, its PAT remained flat at Rs 94 crore (due to an exceptional loss of Rs 36 crore in base quarter). Consolidated revenues grew 18% YoY, led by 24% growth in shipments to 8.1 crore, whereas its realisation declined 6% to Rs164 per shipment. EBITDA margins contracted 616 bps YoY to 18.3% (Rs 30 per shipment in Q2FY23 vs. Rs 42 per shipment YoY) mainly due to higher freight cost of Rs 97 per shipment (vs Rs87 in Q2FY22). The resultant EBITDA de-grew 12% YoY to Rs 243 crore. Further, PAT remained flat, as weak operational performance was negated by exceptional loss in the base quarter
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The contraction in margins is likely due to change in product mix (higher surface share). BlueDart is looking to expand its fleet with two boeing aircraft, which can reach smaller airports and thereby increase its connectivity further. The company will increase the its prices by 10% from next CY onwards to compensate for the higher inflation, which would positively impact its margins
Impact:
Neutral