Blue Dart Disappoints

Blue Dart has disappointed with its Q2 numbers, wherein, on QoQ basis, topline grew by just 4% to Rs. 472 crores, with operating profit falling by 28% to Rs. 43.52 crores. Consequently PAT fell to Rs. 30.06 crores, from Rs. 40.65 crores, earned in Q1. Even PAT was higher at Rs. 32.20 crores in Q2 of FY 13.

However of late, company has become liberal in dividend distribution. FY 13 EPS was placed at Rs. 79.51, on which company declared a dividend of Rs. 71 per share. Adding dividend distribution tax thereto, 105% of PAT was used for dividend by the company in FY 13. Now, company has proposed to issue fully paid up debentures, as bonus, with face value of Rs. 10 each, fully paid up, with 14 debentures to be issued for every 1 share held. Coupon rate on debenture are to be decided at the time of issue. One can take the ballpark discounted value of these debentures at Rs. 125 per share. 7 Debentures have term of 36 months, 4 Debentures have term of 48 months and 3 Debentures have term of 60 months.

But market either have not understood it correctly, or are disappointed for not declaring rate of interest on the debentures, in this high interest regime.