ICICI Securities: Blue Dart’s Weakness In Operating Metrics To Persist Post Q1

BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..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..Click on the attachment to read the full report:.DISCLAIMERThis report is authored by an external party. BloombergQuint does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the brokerage and do not represent the views of BloombergQuint. .Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

ICICI Securities: Blue Dart’s Weakness In Operating Metrics To Persist Post Q1