Blue Dart slips on poor Q3
Blue Dart Express is not doing too well today, with the stock slipping into the red, currently down 2.5% at Rs.3319, with an intra day low at Rs.3270.
The stock is down after the company yesterday posted a set of disappointing numbers for Q3FY14. South Asia’s premier express air and integrated transportation, distribution and logistics company Blue Dart, posted a net sales of Rs.505 crore v/s Rs.458 crore (YoY). Despite the 10% rise in net sales, net profit slipped sharply from Rs.45 crore to Rs.23 crore, down 49%. A substantial jump in operating expenses pushed down the net profit, led mainly by freight, handling and servicing costs, which eats away 71% of the net revenue earned and is 75% of the total operating expenses, rose 27%. Its EPS for 9MFY14 stands at Rs.39.51, giving an annualized EPS of Rs.53.
On completion of 30 years, company had rewarded its equity shareholders through bonus issue of unsecured, redeemable, non-convertible, fully-paid up debentures of Rs. 10 each, which was listed on NSE/BSE. Instead of increasing it equity share capital, company adopted this alternate and innovative route, which many MNCs are aping these days. As of 31st Dec’13, German promoter DHL held 75% stake (down from 81.03% as of September 2012 to meet SEBI’s public shareholding norm), institutions held 13.60% while public shareholders held 11.40%.