Presentation Script
Presentation Script
In this detailed analysis, we will examine the balance sheets and profit & loss
statements of Delhivery, Blue Dart, and Allcargo Logistics for FY 2023 and FY 2024,
highlighting key inferences and financial implications. This evaluation is crucial for
understanding the companies' financial health, stability, and growth potential. I.
The balance sheet of a company provides insights into its financial stability,
liquidity, and capital structure. Here, we will deep dive into the individual balance
sheet analysis of Delhivery, Blue Dart, and Allcargo Logistics, explaining each
major component and the underlying reasons for changes between FY23 and FY24.
o The company might have strategically paid down its long-term debt to
reduce interest expenses and improve financial stability.
• Debt Refinancing:
• Accrued Expenses:
o If the company incurred expenses but has not yet paid them, this
would reflect as an increase in current liabilities.
• Asset Revaluation:
o If the company reassessed its asset values, this could lead to an
increase in total asset valuation.
• Asset Revaluation:
o Blue Dart may have revalued its assets, increasing its reserve capital.
• Equity Infusion:
o Blue Dart likely follows an asset-light model, reducing the need for
large-scale borrowing.
• Operational Expansion:
• Debt-Funded Expansion:
• Debt Restructuring:
o The company may have refinanced old loans under new terms,
leading to an increase in borrowings.
• Asset Disposal:
• Depreciation Impact:
In-Depth Explanation of Each Reason from Slides 22, 23, and 24 (News Article
Snapshots)
This section provides detailed insights into the key reasons behind the financial trends
observed in Delhivery, Blue Dart, and Allcargo Logistics, as discussed in the news
article snapshots.
• What Happened?
Delhivery’s revenue increased by 12.7% in FY24, reaching ₹8,141.54 Cr. This
growth was not just from e-commerce deliveries but due to diversification
into FMCG, healthcare, and industrial logistics.
• What Happened?
Delhivery reported a net loss of ₹257.88 Cr, but this is a 74.8% reduction from
the previous year’s ₹1,021.35 Cr loss.
• What Happened?
Delhivery expanded operations beyond metros into Tier II & III cities, where
demand for logistics is growing due to increasing digital adoption.
o Lower operating costs in Tier II & III cities mean higher margins in the
long term.
These factors show that Delhivery is on track to achieve profitability, even though it
still operates at a loss. The company’s investments in technology, service expansion,
and cost optimization are crucial for future financial stability.
• What Happened?
Blue Dart’s revenue increased only by 1.85%, from ₹5,172.22 Cr to ₹5,267.83 Cr,
despite its strong market presence in premium logistics.
o Unlike Delhivery, Blue Dart has not aggressively expanded into new
market segments, leading to slower growth compared to competitors.
• What Happened?
Blue Dart’s net profit dropped by 18.76%, from ₹370.53 Cr to ₹301.01 Cr,
despite stable revenues.
• What Happened?
Blue Dart’s Earnings Per Share (EPS) dropped from ₹156 to ₹127, reflecting
lower profitability per share.
o A lower EPS reduces investor confidence, making it harder for Blue Dart
to raise funds for future expansion.
While Blue Dart remains a premium logistics leader, rising costs, slow revenue
growth, and declining investor confidence pose challenges. The company must
balance quality service with cost control to maintain profitability.
• What Happened?
Allcargo’s revenue dropped by 26.9%, from ₹18,050.77 Cr to ₹13,187.83 Cr,
making it the worst-performing company in this comparison.
o Global trade slowdowns affected the demand for freight and contract
logistics.
• What Happened?
Allcargo’s EPS fell from ₹26 to ₹2, an alarming 92% drop.
Allcargo is in financial distress, with revenue decline, low profitability, and investor
concerns. The company must streamline operations, form strategic partnerships,
and restructure costs to survive.
Conclusion:
• Blue Dart faces profitability pressures due to rising costs, despite stable
revenues.
These factors reflect broader trends in India’s logistics industry, such as market
diversification, cost management challenges, and global trade impacts.
Would you like additional insights on recovery strategies for these companies?