Bluedart

South Asia’s premier express air and integrated transportation, distribution and logistics company Blue Dart Express reported Q2FY14 revenue of Rs. 472 crore, 4% higher QoQ. But net profit contracted to Rs. 30 crore from Rs. 41 crore in Q1, mainly on account of Rs. 10 crore lower other income of Rs. 8.6 crore. Thus, second quarter EPS stood at Rs. 12.67, resulting in half-yearly EPS of Rs. 29.80. 

On completion of 30 years, company is rewarding equity shareholders through bonus issue of unsecured, redeemable, non-convertible, fully-paid up debentures of Rs. 10 each, to be listed on NSE/BSE. Instead of increasing it equity share capital, company is adopting this alternate and innovative route, which many MNCs are aping these days (recollect Castrol’s move last month. If no, then refer our story on https://www.sptulsian.com/article/76304).

For every equity share held in Blue Dart , 7 three-year debentures, 4 four-year debentures and 3 five-year debentures will be issued (in all equity shareholders to get 14 debentures worth Rs. 140, for 1 equity share translating into a healthy yield of 5% based on last close price of Rs. 2,801 plus interest for next 5 years). Interest, to be payable annually, is yet to be announced on the debentures, which will be treated as ‘deemed dividend’ on which tax shall be paid by the company. Maximum reserves of Rs. 332.2 crore will be used for bonus debentures.

As of 30th June 2013, German promoter DHL held 75% stake (down from 81.03% as of September 2012 to meet SEBI’s public shareholding norm), institutions held 13.73% while public shareholders held 11.27%. Although the results were not very encouraging, the bonus issue of redeemable NCDs will bring cheer to the share price. As it remains a potential delisting candidate, share enjoys superlative valuations with current PE of 47x.