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ICICI Securities Report
Blue Dart Express Ltd. has reported lower-than-expected earnings in Q1 FY21. Standalone Ebitda loss came in at Rs 1,182 million against expected Ebitda loss of Rs 38 million.
Consolidated Ebitda loss was Rs 425 million against Rs 365 million expected Ebitda. Standalone gross margin contracted to 16% from 28% QoQ and 34% YoY.
To note, the compression in gross margin is post Indian accounting standard (Ind-AS) 116 relief on rentals. The cost of sustaining five aircraft bears on margin and profitability in periods of sharp revenue decline like Q1 FY21 (topline declined by 47% YoY).
Management highlighted: i) Majority of Q1 business has been conducted in June 2020 ii) July 2020 has seen a significant improvement vis-a-vis Q1, though more on business to customer (B2C) side than business to business (B2B) side and iii) volumes in Q1 FY21 were not completely comparable YoY, as many charter services ran given disruption of B2B services.
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