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This document provides an in-depth analysis of the balance sheets and financial performance of Delhivery, Blue Dart, and Allcargo Logistics for FY23 and FY24, highlighting key financial metrics and trends. Delhivery is experiencing growth but is still operating at a loss, Blue Dart remains profitable but faces rising costs, while Allcargo is struggling with significant revenue and profit declines. The analysis emphasizes the need for each company to address their respective financial challenges to improve stability and growth potential.

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Akanksha Pandey
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0% found this document useful (0 votes)
9 views10 pages

Presentation Script

This document provides an in-depth analysis of the balance sheets and financial performance of Delhivery, Blue Dart, and Allcargo Logistics for FY23 and FY24, highlighting key financial metrics and trends. Delhivery is experiencing growth but is still operating at a loss, Blue Dart remains profitable but faces rising costs, while Allcargo is struggling with significant revenue and profit declines. The analysis emphasizes the need for each company to address their respective financial challenges to improve stability and growth potential.

Uploaded by

Akanksha Pandey
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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In-Depth Balance Sheet Analysis for Delhivery, Blue Dart, and Allcargo Logistics

(FY23 vs. FY24)

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.

Understanding the Balance Sheet Definition: A balance sheet provides a snapshot


of a company's financial position at a given point in time. It consists of three main
sections: 1. Assets – Resources owned by the company (e.g., cash, receivables,
fixed assets). 2. Liabilities – The company’s financial obligations (e.g., loans, trade
payables). 3. Equity – The residual interest in assets after deducting liabilities (e.g.,
retained earnings, shareholder funds). A well-structured balance sheet helps
determine a company’s liquidity, solvency, and financial flexibility.

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.

1. Delhivery – Balance Sheet Analysis

Balance Sheet Item FY23 FY24 Change

Shareholders' Funds ₹8,643 Cr ₹8,578 Cr -₹65 Cr (-0.8%)

Long-Term Borrowings ₹114 Cr ₹40 Cr -₹74 Cr (-64.9%)

Current Liabilities ₹1,305 Cr ₹1,347 Cr +₹42 Cr (+3.2%)

Total Assets ₹11,190 Cr ₹11,453 Cr +₹263 Cr (+2.3%)

Key Observations & Reasons:

1. Decline in Shareholders’ Funds (-0.8%)

• Net Loss Impact:

o Delhivery reported a net loss of ₹249 Cr, which directly reduced


retained earnings, leading to a decline in shareholders' equity.

• Possible Dividend Payments or Share Buybacks:


o If Delhivery paid any dividends despite its losses, this would further
reduce shareholder funds.

o Share buybacks, where the company repurchases its own stock,


would also lead to a decrease in equity.

2. Significant Reduction in Long-Term Borrowings (-64.9%)

• Debt Repayment Strategy:

o The company might have strategically paid down its long-term debt to
reduce interest expenses and improve financial stability.

• Debt Refinancing:

o Delhivery could have refinanced its long-term debt into short-term


borrowings, which is often done to take advantage of lower interest
rates or better repayment terms.

3. Increase in Current Liabilities (+3.2%)

• Higher Trade Payables:

o Growth in operations could have resulted in an increase in


procurement, leading to higher trade payables.

• Accrued Expenses:

o If the company incurred expenses but has not yet paid them, this
would reflect as an increase in current liabilities.

• Short-Term Debt Increase:

o A shift from long-term to short-term borrowings may have contributed


to this rise.

4. Increase in Total Assets (+2.3%)

• Fixed Asset Investments (+30.2%)

o Delhivery has made significant capital expenditures, likely in


warehousing, technology infrastructure, or logistics capabilities.

• Reduction in Current Assets (-14.5%)

o A decrease in cash reserves or trade receivables suggests that the


company is using its cash flow for operations or investments.

• Asset Revaluation:
o If the company reassessed its asset values, this could lead to an
increase in total asset valuation.

Overall Financial Insight for Delhivery:

• Strong growth in assets but still operating at a loss

• Efficient debt management with a significant reduction in borrowings

• Investment in long-term infrastructure and operational efficiency

• Needs to focus on reducing net losses to improve shareholder value

2. Blue Dart – Balance Sheet Analysis

Balance Sheet Item FY23 FY24 Change

Shareholders' Funds ₹916.90 Cr ₹971.36 Cr +₹54.46 Cr (+5.9%)

Long-Term Borrowings ₹0 Cr ₹0 Cr No Change

Current Liabilities ₹2,333.06 Cr ₹2,574.94 Cr +₹241.88 Cr (+10.4%)

Total Assets ₹1,260.36 Cr ₹1,438.63 Cr +₹178.27 Cr (+14.1%)

Key Observations & Reasons:

1. Increase in Shareholders’ Funds (+5.9%)

• Profitable Operations Leading to Higher Retained Earnings:

o Unlike Delhivery, Blue Dart is profitable, leading to higher retained


earnings and an increase in shareholders' equity.

• Asset Revaluation:

o Blue Dart may have revalued its assets, increasing its reserve capital.

• Equity Infusion:

o If the company issued additional shares or received capital infusion,


this would strengthen equity capital.

2. No Long-Term Borrowings (Debt-Free Strategy)

• Strong Internal Cash Flows:

o The company’s business model allows it to operate without long-term


debt, indicating strong internal cash generation.
• Minimal Capital Expenditure Model:

o Blue Dart likely follows an asset-light model, reducing the need for
large-scale borrowing.

3. Significant Rise in Current Liabilities (+10.4%)

• Operational Expansion:

o Growth in business operations has led to higher trade payables and


short-term financing requirements.

• Accrued Expenses & Deferred Payments:

o A rise in accrued expenses suggests higher operating costs, possibly


due to increased employee salaries and fuel costs.

4. Growth in Total Assets (+14.1%)

• Investments in Technology & Fleet Expansion:

o Blue Dart has likely invested in new logistics technology or fleet


expansion, contributing to an asset increase.

• Higher Trade Receivables:

o An increase in receivables suggests higher sales but slower cash


collection cycles.

Overall Financial Insight for Blue Dart:

• A debt-free company with strong profitability and cash flow

• Experiencing rising operational costs, affecting profitability

• Needs to optimize cost structures to maintain margins

3. Allcargo Logistics – Balance Sheet Analysis

Balance Sheet Item FY23 FY24 Change

Shareholders' Funds ₹320.00 Cr ₹338.90 Cr +₹18.90 Cr (+5.9%)

Long-Term Borrowings ₹3,342.60 Cr ₹3,484.00 Cr +₹141.40 Cr (+4.2%)

Current Liabilities ₹7,230.30 Cr ₹7,104.30 Cr -₹126 Cr (-1.7%)

Total Assets ₹2,797.70 Cr ₹2,501.40 Cr -₹296.30 Cr (-10.6%)

Key Observations & Reasons:


1. Increase in Long-Term Borrowings (+4.2%)

• Debt-Funded Expansion:

o Allcargo is relying on debt financing for growth, which can be risky if


revenue declines continue.

• Debt Restructuring:

o The company may have refinanced old loans under new terms,
leading to an increase in borrowings.

2. Decline in Current Liabilities (-1.7%)

• Better Working Capital Management:

o The company may have optimized payment cycles, reducing short-


term obligations.

3. Sharp Decline in Total Assets (-10.6%)

• Asset Disposal:

o The company might have sold non-core assets or subsidiaries,


reducing total asset value.

• Depreciation Impact:

o High accumulated depreciation could have reduced the book value of


fixed assets.

Overall Financial Insight for Allcargo:

• Heavily reliant on debt for expansion

• Declining total assets indicate financial strain

• Needs urgent restructuring to improve profitability

Final Comparative Insights

• Delhivery: Improving but needs profitability focus.

• Blue Dart: Strong position but must control costs.

• Allcargo: Facing challenges, needs urgent financial restructuring.

Would you like a graphical representation of these trends?

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.

Slide 22: Delhivery – Growth & Financial Performance

Reason 1: Revenue Growth Driven by Diversification

• 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.

• Why Does It Matter?

o FMCG & Healthcare Sectors require fast, reliable logistics, creating a


steady demand for Delhivery’s services.

o Industrial logistics, such as transporting raw materials, adds high-value


contracts and helps stabilize revenue.

o Less dependency on e-commerce ensures that the company does not


suffer from seasonal fluctuations in online shopping trends.

Reason 2: Net Loss Reduction Due to Cost Control

• 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.

• Why Does It Matter?

o Operational efficiency measures, including warehouse automation


and AI-based route optimization, reduced expenses.

o Technology-driven logistics solutions helped cut last-mile delivery


costs and improve shipment accuracy.

o Better cost control through network optimization led to higher asset


utilization.

Reason 3: Expansion into Tier II & III Cities

• What Happened?
Delhivery expanded operations beyond metros into Tier II & III cities, where
demand for logistics is growing due to increasing digital adoption.

• Why Does It Matter?


o Smaller cities are seeing a rise in e-commerce demand, and Delhivery
is strategically positioning itself to cater to these markets.

o Expanding reach early ensures first-mover advantage, allowing


Delhivery to build a strong logistics network before competitors.

o Lower operating costs in Tier II & III cities mean higher margins in the
long term.

Overall Impact on Delhivery

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.

Slide 23: Blue Dart – Rising Costs & Profitability Challenges

Reason 1: Limited Revenue Growth Despite Market Leadership

• 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.

• Why Does It Matter?

o Blue Dart focuses on premium, time-definite logistics, which limits


volume-based revenue growth.

o Unlike Delhivery, Blue Dart has not aggressively expanded into new
market segments, leading to slower growth compared to competitors.

o Market saturation in major cities restricts further expansion without


diversifying service offerings.

Reason 2: Declining Profitability Due to Rising Costs

• What Happened?
Blue Dart’s net profit dropped by 18.76%, from ₹370.53 Cr to ₹301.01 Cr,
despite stable revenues.

• Why Does It Matter?

o Fuel and maintenance costs increased significantly, as Blue Dart


operates a large fleet of aircraft and ground vehicles.

o Inflationary pressures led to higher costs for warehousing, employee


salaries, and operational expenses.
o Premium service requires premium investment, making it harder to cut
costs without affecting service quality.

Reason 3: Declining EPS Indicates Investor Concerns

• What Happened?
Blue Dart’s Earnings Per Share (EPS) dropped from ₹156 to ₹127, reflecting
lower profitability per share.

• Why Does It Matter?

o A lower EPS reduces investor confidence, making it harder for Blue Dart
to raise funds for future expansion.

o Shareholder value erosion could lead to a drop in stock price.

o Competitors with higher EPS growth may attract more investors,


weakening Blue Dart’s market position.

Overall Impact on Blue Dart

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.

Slide 24: Allcargo Logistics – Revenue Decline & Strategic Shift

Reason 1: Sharp Revenue Decline Due to Market Slowdown

• 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.

• Why Does It Matter?

o Global trade slowdowns affected the demand for freight and contract
logistics.

o Lower container shipping rates resulted in lower revenue per


shipment.

o Competitive pressure from domestic and international players reduced


Allcargo’s market share.

Reason 2: Drastic Profit Decline Due to High Fixed Costs


• What Happened?
Net profit dropped by 76.8%, from ₹635.77 Cr to ₹147.35 Cr, due to lower
revenue and high operating expenses.

• Why Does It Matter?

o Logistics businesses have high fixed costs (warehouses, fleet


maintenance, long-term contracts).

o When revenue declines, fixed costs remain, leading to a steep profit


drop.

o Unlike Blue Dart, which has an asset-light model, Allcargo is heavily


invested in physical infrastructure, making cost adjustments harder.

Reason 3: EPS Collapse Signals Financial Instability

• What Happened?
Allcargo’s EPS fell from ₹26 to ₹2, an alarming 92% drop.

• Why Does It Matter?

o Drastically reduced investor confidence, making it harder to raise


capital.

o Stock value decline can affect long-term business expansion plans.

o Indicates that Allcargo must restructure operations, cut non-essential


costs, and focus on high-margin businesses.

Overall Impact on Allcargo

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.

Final Takeaways from Slides 22, 23, and 24

Company Key Positive Key Challenge Strategic Focus

Strong revenue Improve cost control, aim for


Delhivery Still loss-making
growth, lower losses profitability

Stable revenue, strong Rising costs, profit Optimize costs without


Blue Dart
market position decline compromising service quality
Company Key Positive Key Challenge Strategic Focus

Large market Massive revenue & Urgent cost restructuring &


Allcargo
presence profit decline business realignment

Conclusion:

• Delhivery is growing fast and nearing profitability through expansion and


efficiency.

• Blue Dart faces profitability pressures due to rising costs, despite stable
revenues.

• Allcargo is in financial trouble and must urgently restructure to recover.

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?

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