Blue Dart Express

Blue dart express
Given the bombardment of advertisements that i see of all the online shopping websites, One of the direct benefactors is courier and logistics firms who serve them.

Of the two companies that are listed - Blue Dart and GATI, i find blue dart attractive for the following reasons

CMP 2050

Ownership : DHL express singapore owns 75%


Dec '11 Dec '10 Dec '09 Dec '08 Dec '07

Sales Turnover 1,489.60 1,147.41 905.23 974.47 808.72
Excise Duty 0.00 0.00 0.00 0.00 0.00
Net Sales 1,489.60 1,147.41 905.23 974.47 808.72
Other Income 23.45 4.46 6.92 6.61 0.93
Stock Adjustments 0.00 0.00 0.00 0.00 0.00
Total Income 1,513.05 1,151.87 912.15 981.08 809.65

Raw Materials 0.00 0.00 0.00 0.00 0.00
Power & Fuel Cost 0.00 0.00 0.00 0.00 0.00
Employee Cost 184.41 148.89 134.76 132.65 116.36
Other Manufacturing Expenses 1,007.64 748.36 585.63 635.92 501.94
Selling and Admin Expenses 78.62 63.31 52.85 53.15 40.06
Miscellaneous Expenses 40.87 30.74 26.98 26.42 19.41
Preoperative Exp Capitalised 0.00 0.00 0.00 0.00 0.00
Total Expenses 1,311.54 991.30 800.22 848.14 677.77

Dec '11 Dec '10 Dec '09 Dec '08 Dec '07

12 mths 12 mths 12 mths 12 mths 12 mths
Operating Profit 178.06 156.11 105.01 126.33 130.95
PBDIT 201.51 160.57 111.93 132.94 131.88
Interest 1.63 1.26 1.68 1.59 1.66
PBDT 199.88 159.31 110.25 131.35 130.22
Depreciation 21.60 19.22 17.76 16.57 24.03
Other Written Off 0.00 0.00 0.00 0.00 0.16
Profit Before Tax 178.28 140.09 92.49 114.78 106.03
Extra-ordinary items 0.60 0.29 0.33 3.97 0.55
PBT (Post Extra-ord Items) 178.88 140.38 92.82 118.75 106.58
Tax 56.64 46.02 32.12 41.40 36.64
Reported Net Profit 122.24 94.37 60.71 77.35 69.38
Total Value Addition 1,311.54 991.30 800.22 848.14 677.78
Preference Dividend 0.00 0.00 0.00 0.00 0.00
Equity Dividend 4.75 2.37 2.37 2.37 2.37
Corporate Dividend Tax 0.77 0.39 0.40 0.40 0.47
Per share data (annualised)

Shares in issue (lakhs) 237.28 237.28 237.28 237.28 237.28
Earning Per Share (Rs) 51.52 39.77 25.58 32.60 29.24
Equity Dividend (%) 20.00 10.00 10.00 10.00 10.00
Book Value (Rs) 277.37 228.17 189.57 165.15 133.72

Zero debt
Increasing profits
Online shopping growth at 30% CAGR
Market size of online retail shopping of $300 million (2009)
Indian retail market size is $470 billion (2011)

PE - 35
Competition from other international players - Fedex
Competition from local non listed companies - First flight, DTDC etc
Potential new entrants in retail FDI could move the market to brick and mortar shops (Walmart, IKEA)
Bigger online houses might lean towards a holistic logistics provider to a vanilla courier service

Company website

I have no holdings in the company now, but may initiate a small position soon.

Yes, they would be a huge beneficiary of the online retail boom but I’msurprisedto see the growth at about 20% till now vsexpectationof 25-30% growth rate

I think the major beneficiary of online retail boom has been Fedex and BlueDart. Fedex more so because of its strategic partnership with ebay.

not much activity here. any valuepickr tracking it?. i think the scale of opportunity is huge here. most of the online shoppers use blue dart. ( recently ordered a book from they used blue dart). all my banking related mails are delivered by blue dart.

its a monopoly here . in this business trust is the most important factor. i myself use blue dart for sending important mails even though they charge a huge premium compared to other players.

Blue dart seems a very very interesting stock to track esp in line with the online shopping boom… I too ordered some footwear from snapdeal and yes it too was delivered by blue dart.

Another thing I note now is presence of small blue dart retail shops in my city… Looks like they are focussing on retail households also…

I think from levels of 2000 odd there might be very little to lose and a lot to gain.

Would look into it closely and get back.

Q1/Fy 13-14 Results out…

Total Income up 5.1% to 453.52 Cr from 431.71 Cr.
EBIDTA DOWN 15.8% to 48.35 Cr from 57.44 Cr.
Net Profit FLAT @ 40.65 Cr v/s 40.63 Cr.

EBIDTA margin is 10.7% v/s 12.4% (MQ-13) and 13.3% (JQ-12)
NET Profit margin is 9% v/s 9.4% (MQ-13) and 9.4% (JQ-12)

Freight & Handling costs as a %ge to Income is 66.7% v/s 65.8% (MQ-13) and 64.2% (JQ-12)
Employee costs to Income is 14.1% v/s 13.4% (MQ-13) and 14.3% (JQ-12)
Other expenses to Income is 8.6% v/s 8.4% (MQ-13) and 8.2% (JQ-12)

Tax Rate 32.4% v/s 28.5% (MQ-13) and 30% (JQ-12)

More than doubling in Other income (18.48 Cr v/s 8 Cr) Helped Net profit.

EPS 17.13 v/s 17.12
Recorded TTM (sum of 4 quartr) diluted EPS: Rs. 67.26

At 03:25 pm on 23/07/2013, stock on BSE trading at Rs. 2571/- up 2.5%

icicidirect, initiating coverage.

The company has posted dissapointing results for Q2FY14. Topline grew by just 12.80% on a y-o-y basisto Rs.471.02 crore from Rs.418.08 crore in Q2FY13 while EBIDTA margins to 8.86% in Q2FY14 vs. 10.75% in Q2FY13. EBITDA margins declined on account of increase in freight handling and services charges. Decline in EBITDA margins led to degrowth in PAT by 6.64% in Q2FY14 vs Q1FY13.

Sometimes I wonder that whether the company has such a big brand that it justifies a P/E of more than 40 times?

There has been no movement in the stock, Can someone please advise if it’s wise to invest in the company now.

comments in chart. Best of luck


Blue Dart seems to have ended its down trend from 7850 at 3830. It has broken downward slopping trendline and closed this week with a very bullish weekly candle. Last quarter results were poor but technicals are indicating nice bottom

It’s long that it’s stuck at this price range… I bought it at 7k and still holding it as I feel it’s hot the potential to be one of the beneficiary of the e commerce play… Can anyone share info on why it’s stuck at this price from so long?

they are loosing market share in ecom space - which was main story for higher growth, ecom business as % of mix has come down in FY18. Also - in air freight - they are facing competition from spicejet (they are competitive with lot of belly space available). though great management, but demanding valuations are reasons. FY19 can be better due to poor base. however, not game changer.


Any views on Blue Dart? It has not been able to capitalise on the B2C segment(ecommerce etc), while the B2B segment has grown in single digits only.
DHL worldwide is planning to make a serious foray into the ecomm business in India. They own 75% in Blue dart. They generate between 20-30% of their worldwide revenues from the e-comm segment.
Any views would be welcome please.

I feel local players are giving a good competition and hence blue dart is unable to penetrate… Also though B2C boom from outside looks to be attractive i dont think its going to give a huge revenue and margin like B2B where they must be getting confirmed repeat orders also.

Though bluedart as a brand is known to everyone , may be their strategy for indian market needs to be revisited.

Disclosure : I dont own any bluedart express stock and in doing a monthly SIP mode with TCI express. My opinion may be biased.

Reviving the thread here…
Company was super profitable from 2007 to 2018…
However operating profit margins have reduced from 15% in 2006 to 12.5% in 2018…
Had a look in screener…number tell that from 2007 to 2018 company had to do capex of around 980crores approx…
Produced free cash of around 700crores…
Assuming company gave dividends of 30 crores(last year 29crs , preceding year 35crores) for ten years. (300 crores).still lot of cash must be left…
However the investment section shows from 105 crores in 2009 to zero in 2018…
Where did that excess cash go??..
And why has the company borrowed around 491 crores in 2017… Which has come down to 418 odd levels…(is it working capital loans?)…
Curious about where the excess cash went??..
Anyone trackng the company can shed some light…

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Probably something to do with the bonus debentures they gave to shareholders.

Blue Dart has reported over 20% revenue growth and robust margin expansion in Q3FY21. Company has started benefitting from the investment it had made in last three years. These investments have (1) expanded footprints (2) improved efficiency , and (3) reduced cost structure. Blue Dart stands to gain from rise in penetration of e-commerce in smaller towns. Currently e-commerce is about 25% of revenue.

Thats correct.

Here is an old report on the logistics industry from Phillip Capital which shows how the different players are placed then and the capex heavy nature of the different LOB within logistics.

Phillip Capital_-Logistics_Sector_Initiating-_Jul 2017.pdf|attachment (2.8 MB)

A recent report on the express logistics industry from Indian Chamber of Commerce: -

Express logistics industry report 2022

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The most recent available concall was for Q1 FY23. During that time the company was facing fuel cost related challenges which was affecting their gross margins. Since then another quarter passed and the expenses seem to have grown way more than the topline. Price action was also negative, perhaps for this reason.