GICS Industry : Air Freight & Logistic l Sub Industry : Air Freight & Logistic l Website : www.bluedart.

com

Blue Dart Express Ltd

Key Stock Indicators
NSE Ticker : Bloomberg Ticker : Face value / Share: Div. Yield (%): BLUEDART BDE:IN 10.0 0.09 CMP (as on 11Feb 2011Rs/share): 52-week range up to 11 Feb 2011 (Rs)(H/L): Market Cap as on 11Feb 2011 (Rs mn): Enterprise Value as on 11 Feb2011 (Rs mn): 1,014.9 213.45/628.75 24,080 23,820 Shares outstanding (mn) : Free Float (%) : Average daily volumes (12 months) : Beta (2 year) : 23.7 19.0 8,141 0.7

Blue Dart Express Limited (BDE) began operations in November 1983. It is South Asias premier courier and integrated express package distribution company. The company is primarily engaged in the business of integrated air and ground transportation and distribution of time-sensitive packages in India and throughout the world.DHL Express (Singapore) Pte Ltd holds ~81% of the equity capital in BDE

Key Financial Indicators

R evenue (R s m n) E B ITD A m a rg ins (% ) P AT (R s m n) P AT m a rg ins (% ) G ea ring (x) E P S (R s /s ha re) P E (x) P /B V (x) R oC E (% ) R oE (% ) E V/E B ITD A (x) Dec -07 8,121.6 16.2 712.2 8.8 30.0 24.8 5.6 35.9 25.4 13.1 Dec -08 9,779.4 13.0 779.6 8.0 32.8 12.9 2.6 32.4 22.2 7.5 Dec -09 9,096.7 11.7 611.9 6.7 25.7 39.4 5.4 21.6 14.7 22.4

KEY HIGHLIGHTS
Integrated air and ground transportation company BDE offers delivery of consignments to over 25,646 locations in India. As part of the DHL group, the company has access to the largest logistics network worldwide, covering over 220 countries, and offers an entire spectrum of distribution services including air express, freight forwarding supply chain solutions and customs clearance. The company has warehouses at 53 locations across India and bonded warehouses at 7 major metros Ahmedabad, Bangalore, Chennai, Delhi, Mumbai, Kolkata and Hyderabad. Unmatched delivery capability a unique business proposition

n.m.: Not meaningful

Shareholding (As on December 31, 2010)

BDE has interline agreements with various international airlines and also offers bonded warehousing and transshipment facilities. The company offers customised products to meet specific needs and rolls out additional international products and services from DHL such as Easy Pallet, duty and taxes paid, shipper interest insurance, etc. On domestic front, it has launched cash on delivery product, smart box on ground express and time definite products such as Domestic Priority 10:30 and Dart Apex 12:00. The companys time-definite services are backed by a full money-back guarantee. Reinforcement of Blue Dart and DHL brands The company has reinforced Blue Dart and DHL brands as a unified force at all touch points that deal with domestic and international services. This was done by strengthening its retail format with a combined 380+ stores, which remains unparalleled in terms of presence across the country.
FII 1% DII 8% Others 10%

Promoter 81%

KEY RISKS Indexed price chart

Volatility in prices of fuel may affect the logistics sector Constrain in infrastructure facility may affect the business

(index ) 250 200

('000) 700 600 500 400 300 200 100 0 May-10 Nov-10 Mar-10 D ec -10 O c t-10

Stock Performances vis--vis market

Returns (%) YTD BL UE DAR T NIFTY
Note: 1) YTD returns are since Jan04, 2010 to Feb11, 2011. 2) 1-m, 3-m and 12-m returns are up to Feb11, 2011.

150 100

1-m 1 -9

3-m -8 -17

12-m 59 10

50 0 F eb-10 Aug-10 S ep-10 Apr-10 J an-11 J un-10 J ul-10

43 0

V olumes (R HS )

B L UEDA RT

NIFTY

CRISIL COMPANY REPORT | 1

Blue Dart Express Ltd

BACKGROUND
BDE was promoted by Tushar Jani, Cyde Cooper and Khushroo Dubash. BDE was converted into public company in 1994. The company is engaged in the courier business for carriage and door-to-door delivery of commercial documents, samples, panels and printed matter in India and throughout the world. BDE is South Asias premier courier and integrated express package distribution company, with a domestic network covering over 25,646 locations, and services to more than 220 countries worldwide through its alliance with DHL, the world's leading mail and logistics group. The company has warehouses at 53 locations across the country as well as bonded warehouses at Ahmedabad, Bangalore, Chennai, Delhi, Mumbai, Kolkata and Hyderabad. The company has air support of 3 Boeing 737 and 4 Boeing 757 freighters and ground support of ~5,366 vehicles. It has ISO9001-2008 countrywide certification by Lloyds Register Quality Assurance for its operations, products and services. The company handled 77 million (mn) domestic shipments and ~0.66 mn international shipments (total tonnage of 267,533) during CY09. As of December 2009, the company has over 7,134 employees.

COMPETITIVE POSITION
Peer Comparison

Revenue (Rs mn) EBITDA margins (%) PAT (Rs mn) PAT margins(%) Gearing (x) EPS (Rs/share) PE (x) P/BV (x) RoCE (%) RoE (%) EV/EBITDA (x)
n.m: Not meaningful

Blue Dart Express Ltd. Dec-09 9,096.7 11.8 610.2 6.7 0.0 39.8 25.6 4.4 20.6 14.1 22.6

Gati Ltd. Jun-10 9,334.5 9.3 95.0 1.0 2.1 1.9 28.2 1.6 7.5 4.1 10.8

Sical Logistics Ltd. Mar-10 7,249.8 5.0 -352.8 -4.9 4.3 3.7 19.9 0.8 0.2 n.m 31.2

Allcargo Global Logistics Ltd Dec-09 20,619.5 10.6 1,407.1 6.8 0.3 56.4 2.4 0.4 21.7 24.2 2.0

FINANCIAL PROFILE
Top-line down 7% y-o-y; margin and PAT also decline

K ey Financ ia l Indic ators Units R evenue R s m illion P er cent R s m illion P er cent P er cent P er cent P er cent Tim es P er cent P er cent E B ITD A m a rg ins P AT P AT m a rg ins R evenue g rowth E B ITD A g rowth P AT g rowth G ea ring R oC E R oE

De c -07
8,121.6 16.2 712.2 8.8 21.0 26.9 39.3 0.0 35.9 25.4

De c -08
9,779.4 13.0 779.6 8.0 20.4 -3.6 9.5 0.0 32.4 22.2

De c -09
9,096.7 11.7 611.9 6.7 -7.0 -16.2 -21.5 0.0 21.6 14.7

BDE registered a top-line growth of CAGR 5.8% from CY07-CY09, but topline for CY09 decreased 7% year-on-year (y-o-y) to Rs 9 bn, affected by decrease in volumes due to industry slowdown. Operating margin decreased by 130 basis points from 13% to 11.7%, on account of increase in employee, power and fuel costs. PAT decreased 21.5% y-o-y from Rs 779.6 mn in CY08 to Rs 611.9 mn in CY09. This was on account of decrease in operating profit, increase in interest and depreciation cost, as well as decrease in other income.

INDUSTRY PROFILE
Airline Services The airline services industry covers the scheduled commercial operations of Indian carriers on both domestic and international routes. It also includes the cargo operations of the carriers. The growth in domestic and international passenger traffic to a large extent on account of the advent of low fare carriers (LFCs), stable ticket prices and strong demand from corporate and leisure travelers. The domestic aviation market is highly competitive with presence of nine players. Increase in ticket prices happens but with a substantial lag to the increase in fuel costs. This affects the profitability of carriers. Indian carriers face severe competition from alternate modes of transport on domestic routes and large international carriers on international routes, which adds to the challenges faced by carriers. Logistics CRISIL Research has estimated the overall Indian logistics spend at Rs 2.7 trillion in 2008-09, which includes only primary transport modes and infrastructure, equivalent to around 8.2 per cent of the Gross Domestic Product (GDP). And if the secondary movement (from the hub to the various depots) is also included, this shoots up to 10.7 per cent, which is significantly higher than those of developed nations where it averages 5-7 per cent. Higher logistics spend as percentage of GDP can be attributed to the overall inefficiency in logistics operations, multiple tax structures, inadequate infrastructure and unorganised nature of the industry in India. With escalating competition and cost pressures, companies are increasingly focusing on their core competencies by outsourcing their logistics requirements to third party logistics (3 PL) players. The future of the Indian logistics industry is currently governed by three key factors viz. increasing domestic demand, reducing logistics cost and improvement in Infrastructure.

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Blue Dart Express Ltd

ANNUAL RESULTS
Income Statement (Rs million ) Net Sales Operating Income EBITDA EBITDA Margin Depreciation Interest Other Income PBT PAT PAT Margin No. of shares (Mn No.) Earnings per share (EPS) Cash flow (Rs million ) Pre-tax profit Total tax paid Depreciation Change in working capital Cash flow from operating activities Capital Expenditure Investments and others Balance sheet (Rs million ) Equity share capital Reserves and surplus Tangible net worth Deferred tax liablity:|asset| Long-term debt Short-term-debt Total debt Current liabilities Total provisions Total liabilities Gross block Net fixed assets Investments Current assets Receivables Inventories Cash Total assets Ratio Dec-07 1,079.2 -389.9 242.1 -96.7 834.7 -172.0 -358.7 Dec-08 1,156.2 -414.4 167.5 -313.9 595.4 -351.5 -82.6 Dec-09 932.0 -316.2 179.4 -412.6 382.6 -244.1 -340.9 Revenue growth (%) EBITDA growth(%) PAT growth(%) EBITDA margins(%) Tax rate (%) PAT margins (%) Dividend payout (%) Dividend per share (Rs) BV (Rs) Return on Equity (%) Return on capital employed (%) Gearing (x) Interest coverage (x) Debt/EBITDA (x) Asset turnover (x) Current ratio (x) Gross current assets (days) Dec-07 21.0 26.9 39.3 16.2 35.9 8.8 3.3 1.0 132.5 25.4 35.9 0.0 225.9 0.0 3.4 2.7 89 Dec-08 20.4 -3.6 9.5 13.0 34.7 8.0 3.0 1.0 163.3 22.2 32.4 0.0 805.4 0.0 3.8 2.8 79 Dec-09 -7.0 -16.2 -21.5 11.7 33.8 6.7 3.9 1.0 187.8 14.7 21.6 0.0 151.7 0.0 3.3 2.8 79

Dec-07 8,106.2 8,121.6 1,319.1 16.2 242.1 5.8 8.1 1,084.7 712.2 8.8 23.8 30.0

Dec-08 9,760.0 9,779.4 1,271.8 13.0 167.5 1.6 53.5 1,195.9 779.6 8.0 23.8 32.8

Dec-09 9,067.7 9,096.7 1,066.0 11.7 179.4 7.0 52.4 935.1 611.9 6.7 23.8 25.7

Dec-07 237.6 2,910.5 3,148.1 176.5 0.0 0.0 0.0 833.3 99.0 4,256.9 2,451.7 1,599.7 628.0 2,029.2 1,092.8 20.4 313.9 4,256.9

Dec-08 237.6 3,643.1 3,880.8 178.4 0.0 0.0 0.0 846.7 134.9 5,040.8 2,705.2 1,764.5 710.6 2,565.6 1,154.3 21.9 487.0 5,040.7

Dec-09 237.6 4,224.8 4,462.4 185.4 0.0 0.0 0.0 953.5 99.8 5,701.1 2,829.4 1,826.8 1,051.5 2,822.7 1,233.5 20.0 259.9 5,701.0

Cash flow from investing activities Equity raised/(repaid) Debt raised/(repaid) Dividend (incl. tax) Others (incl extraordinaries)

-530.7 0.0 -101.8 -27.8 6.4

-434.1 0.0 0.0 -27.8 39.7

-585.0 0.0 0.0 -27.8 3.1

Cash flow from financing activities Change in cash position Opening cash Closing cash
n.m : Not meaningful;

-123.2 180.8 133.1 313.9

11.9 173.2 313.9 487.0

-24.7 -227.1 487.0 259.9

QUARTERLY RESULTS
P rofit a nd los s ac c ount (R s m illion) No of Months R evenue EB ITDA Interes t D eprecia tion PBT P AT S ep-10 3 2,953.2 357.6 0.1 46.8 310.7 209.8 100.0 12.1 0.0 1.6 10.5 7.1 % of R ev S ep-09 3 2,371.5 293.5 0.1 43.7 249.7 164.9 100.0 12.4 0.0 1.8 10.5 7.0 % of R ev J un-10 3 2,782.3 414.8 46.4 368.4 256.2 100.0 14.9 1.7 13.2 9.2 % of R ev S ep-10 9 8,320.3 1,181.7 0.1 139.9 1,041.7 703.8 100.0 14.2 0.0 1.7 12.5 8.5 % of R ev S ep-09 9 6,575.7 735.7 0.1 133.9 601.7 395.8 100.0 11.2 0.0 2.0 9.2 6.0 % of R ev

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Blue Dart Express Ltd

FOCUS CHARTS & TABLES
Rs mn 3,500 3,000 2,500 2,000 1,500 1,000 500 0 Mar-08 Mar-09 D ec -08 D ec -09 Mar-10 J un-08 J un-09 S ep-08 S ep-09 J un-10 S ep-10 10 0 -10 -20

Qua rte rly sa le s & y-o-y g rowth

Per c ent 40 30 20

R s mn 350 300 250 200 150 100 50 0 Mar-08

Qua rte rly P AT & y-o-y g rowth

Per c ent 150 100 50 0 -50 -100

Mar-09

D ec -08

D ec -09

Mar-10

J un-08

J un-09

S ep-08

S ep-09

J un-10
Mar-10 J un-10
NPM

Sales

Sales growth y-o-y (RHS)

Net Profit

Net profit growth y-o-y (RHS)

Rs /s hare 14 12 10 8 6 4 2 0 Mar-08

EP S

Per c ent 25 20 15 10 5 0

Movement in operating and net marg ins

Mar-08

D ec -07

D ec -08

Mar-09

D ec -09

J un-08

S ep-08

J un-09

S ep-09

S ep-10
S ep-10

Mar-09

D ec -07

D ec -08

D ec -09

Mar-10

J un-08

J un-09

S ep-08

S ep-09

J un-10

S ep-10

OPM

S hareholding P attern (P er c ent) Mar 2010 J un 2010 P rom oter 81.0 81.0 F II 0.8 0.7 D II 7.4 7.4 Others 10.8 10.9

S ep 2010 81.0 0.9 7.5 10.6

Board of Directors Director Name Dec 2010 Sha s hi kumar Sa muel Ramdas 81.0 (Air Mars ha l)

Designation Non-Executive Chai rma n

Managing Director 0.9 Anil Jai Kri s han Kha nna (Mr.) 7.7 Ma lcol m Anthony Montei ro (Mr.) Managing Director 10.4 Clyde Chris topher Cooper (Mr.) Non-Executive Di rector Surendra Girdha rla l Sheth (Mr.) Roger Crook (Mr.) Chris topher Ong (Mr.) Sures h Sheth (Mr.) Sha ra d Upa s ani (Mr.) Non-Executive Di rector Di rector Alternate Director to Mr.Roger Crook Di rector Di rector

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