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Logistics stock jumps 7% after company announces 12% hike in its shipping services

Published 01-10-2024, 03:14 pm
Updated 01-10-2024, 07:45 pm
© Reuters.  Logistics stock jumps 7% after company announces 12% hike in its shipping services
BLDT
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During Tuesday’s trading session, the shares of South Asia’s premier express air and integrated transportation and distribution express logistics company surged 7 percent at Rs. 8,778 on BSE, after announcing the plans of a General Price Increase (GPI) in the range of 9 to 12 percent.

With a market capitalisation of Rs. 20,643.3 crores, at 03:03 p.m., the shares of Blue Dart Express (NS:BLDT) Limited were trading in the green at Rs. 8,700, up by 6.13 percent, as against its previous closing price of Rs. 8,197.45.

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What’s the News:

According to the latest regulatory filings with the stock exchanges, Blue Dart Express Limited announced its General Price Increase (GPI), effective from 1st January 2025.

The average price increase is expected to fall within the range of 9 to 12 percent, depending on product variabilities and the shipping profile.

In its ongoing commitment to delivering reliable and efficient logistics solutions, Blue Dart conducts a comprehensive annual review of its pricing structure.

The pricing adjustments for 2025, which encompass inflationary adjustments and cost rationalisation, are intended to partially offset escalating long-term costs. These costs include rising input costs to operations, such as airline operating costs and infrastructure costs.

These measures help uphold the company’s high standards amidst inflationary pressures, complexities in the global supply chain, and dynamic changes in the domestic landscape.

Financials:

The company reported a significant growth in revenue from operations, experiencing a year-on-year increase of nearly 8.5 percent, rising from Rs. 1,238 crores in Q1 FY24 to Rs. 1,343 crores in Q1 FY25.

However, during the same period, the company’s net profit declined from Rs. 61 crores to Rs. 53 crores, representing a fall of 13 percent YoY.

Stock Performance

The stock has delivered positive returns of nearly 27.8 percent of returns in one year, as well as around 41.6 percent returns in the last six months. So far in 2024, the shares of Blue Dart Express have given positive returns of about 18.5 percent.

About the Company:

Blue Dart Express Limited, a part of DHL Group, is engaged in the business of integrated air and ground transportation and distribution of time-sensitive packages to various destinations, primarily within India.

Blue Dart accesses the largest and most comprehensive express and logistics network worldwide, covering over 220 countries and territories, and offers an entire spectrum of distribution services including air express, freight forwarding, supply chain solutions, customs clearance etc.

Written by Shivani Singh

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