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Blue Dart shares drop after higher operating costs dent earnings

Blue Dart shares drop after higher operating costs dent earnings

Blue Dart shares drop after higher operating costs dent earnings
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By Mangalam Maloo   |Mangalam Maloo Oct 31, 2022 12:01:41 PM IST (Published)

Higher operating costs hit Blue Dart's EBITDA, even as revenue grew year-on-year

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Shares of Blue Dart Ltd. dropped on Monday after the company reported a subdued operating performance due to higher operating costs.

The company's consolidated revenue increased 17.9 percent to Rs 1,325 crore led by price hikes and volumes. The logistics business has seen a sharp recovery after the pandemic-induced lockdowns were lifted.

However, operating profit took a hit on account of higher costs, especially of fuel and movement of goods. Consolidated EBITDA came in at Rs 242.99 crore compared to Rs 275.24 crore, a drop of 11.7 percent.

Consolidated profit after tax was up just 3.4 percent to Rs 93.64 crore compared to Rs 90.55 crore in the previous quarter.

EBITDA margin stood at 0.18 percent from 0.24 percent during the same period last year.

Some of the near-term triggers for the company include the festive season which will impact the company's December quarter results. The company will implement a price hike of 9.6 percent from December this year.

Blue Dart Aviation is looking to expand its fleet with two Boeing 737 aircraft. This aircraft can reach small airports to increase connectivity.

At 10:20 am on Monday, the Blue Dart stock was trading at Rs 7,783.70, down 2.15 percent, on the BSE, while the Sensex was up 608.72 points, or 1 percent, to 60,568.57.

Shares of Blue Dart are trading 3.3 percent lower at Rs 7,680 as of 12 noon. The stock is up 19 percent this year and has outperformed most of its peers.

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