Motilal Oswal's research report on Blue Dart Express
BDE reported a healthy revenue growth (+21% YoY) of ~INR11.7b in 4QFY22 (inline), driven by higher growth in the Surface and e-commerce segments. Revenue grew ~34% YoY to INR44b in FY22, led by ~30%/4-5% growth in volumes/realization. EBITDA margin stood at 18.7% in 4QFY22 (est. 15.7%), up 70bp YoY and 245bp QoQ. Margin improvement in 4QFY22 was led by a sharp reduction in employee costs, which fell 6% YoY and 22% QoQ. The cost rationalization measures in the last two years also yielding results, resulting in improved margin. Strong operational performance saw APAT grow 52% YoY in 4QFY22.
Outlook
We raise our FY23/FY24 EPS estimate by 10%/14% , factoring in an improved margin outlook. We retain our Neutral rating on the stock, with a revised TP of INR7,715/share (21x FY24E EV/EBITDA).
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