ABOUT THE COMPANIES

Blue Dart Express Ltd is South Asia's leading integrated air express carrier and premium logistics-services provider.It is engaged in the business of integrated air and ground transportation and distribution of time sensitive packages to various destinations, primarily within India. It offers secured and reliable delivery of consignments to over 55,000 locations in India. As a part of the Deutsche Post DHL Group's (DHL Express, DHL Global Forwarding & DHL Supply Chain) Post - e-commerce - Parcel (PeP) division (DPDHL Group), the Company accesses the largest and most comprehensive express and logistics network worldwide through DHL, 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. Presently, Blue Dart operates with its fleet of 6 Boeing 757-200 freighter aircraft, two Boeing 737 aircraft (to be inducted soon), offering a payload of 500+ tonnes per night, a fleet of 12,000+ vehicles, 2,347 facilities and 440 e-vehicles across 55,400+ locations in India. Over 12,500 passionate and trained `Blue Darters' work in perfect harmony to deliver over 35+ shipments every second. Blue Dart has 2,347 facilities / hubs / offices across India. The company is also the global service participant of Federal Express International, US, with exclusive rights for pick-up and delivery services in India. Under the agreement between Blue Dart and Federal Express, all international shipments of Blue Dart are distributed through the Federal Express system and Federal Express's inbound shipments to India are delivered through Blue Dart's network.

Delhivery provides a full range of Logistics services, including delivery of express parcels and heavy goods, PTL freight, TL freight, warehousing, supply chain solutions, cross-border Express, freight services, and supply chain software. The company also offers value-added services such as e-commerce return services, payment collection and processing, installation & assembly services, and fraud detection.Apart from this, the Company provided supply chain solutions to a diverse base of 21,342 Active Customers such as e-commerce marketplaces, direct-to-consumer e-tailers and enterprises and SMEs across several verticals such as FMCGs, consumer durables, consumer electronics, lifestyle, retail, automotive and manufacturing. It is the largest and fastest-growing fully integrated logistics company in India by revenue in FY24. It provides full range of logistics and value-added services serving over 220 countries and territories.Its express parcel delivery network, which serviced 17,045 PIN codes is capable of handling consignments of up to 10 kilograms with same-day and next-day capabilities and 48–96-hour deliveries for long-distance orders.

Business to Business Comparison:

Blue Dartmanaged359 million shipmentsweighing1,204,000 tonnesin Fy24. It has warehouses at 85 locations across India and bonded warehouses in the 7 major metros of Ahmedabad, Bangalore, Chennai, Delhi, Mumbai, Kolkata, and Hyderabad. Company also has 2 subsidiaries namely, Blue Dart Aviation Ltd. and Concorde Air Logistics Ltd. It is the market leader in India Express & parcel delivery along with 55% market share in Organized Air B2B Express market share and 13-15% in Organized Surface B2B Express.

Delhivery has 29 fully and semi-automated sortation centers and 111 gateways across India, with a rated automated sort capacity of 7.1 million shipments per day.has 80+ applications through which they provide various services, orchestrated by their platform to govern end-to-end transaction flows. It has 3,567Number of Delivery Points and Team Size of 67,897 serving 35277 Active Customers. It has also expanded its offering to cross-border air-cargo services, powered by their global shipping service, “Starfleet” which provides international air cargo services through a mix of charter and block space agreements through partnerships with major airlines on certain trade corridors of India, such as the US, Europe, and China.The company has also added 150 46-foot tractor-trailers, boosting its line-haul capacity for long-distance, bulk transport.The company has also commissioned a 1.2 million sq. ft. mega-gateway in Bhiwandi, Maharashtra, one of its largest hubs to manage rising parcel volumes.

Financial Comparisons:

Results of Q2FY25:

In Q2Fy25 Blue dart reported Revenue of Rs. 14,48.5 Cr. with 9.36% jump compared to same period on YoY basis. It has reported PAT of Rs. 62.84 Cr. with a downfall of 13.99% compared to Q2Fy24 on YoY basis.

Delhivery reported Qtr. sales of Rs. 2189.73Cr. with 12.775 growth on YoY basis and its Quarterly Profit surged by 103.91% and reached Rs. 10.20 Cr. in Q1Fy25 compared to same period in previous year.

CONCLUSION:

The logistics industry in India is growing rapidly, and is expected to continue to do so in the coming years. The logistics market in India was valued at $317.3 billion in 2024, and is expected to grow to $484 billion by 2029 and is is expected to grow at a compound annual growth rate (CAGR) of 8.8% from 2024 to 2029. Making of Dedicated freight corridors in for rail transport and national logistics corridors by Government of India has brought immense growth in India’s logistics sector in recent years. Considering the growth of sector, both Delhivery and Blue dart are well poised to have an amazing flow of revenue ahead. From investment point of view, Blue dart seems to be at a higher current market price compared to its nearest peer – Delhivery, irrespective of its presence. So, small or medium investors can invest in Delhivery for long term period and HNI can diversify their investments between both companies to enjoy higher returns in upcoming from growth of both companies in upcoming years.

Which one you will prefer for investing point of view? And of course, for driving point of view? let us know on info@smartinvestment.in and you can also request for comparisons between any companies or sectors, in return we will try to cover it in our next report!

Comparative Analysis by: HET ZAVERI

info@smartinvestment.in

(Disclosures: Above mentioned is not an investment advice, it’s just a comparison of two likewise companies of same sector which may help in taking advised decisions for investors. At the time of writing this article, author, his clients & dependent family members may have positions in the stocks mentioned above. The author, his firm, his clients, or any of his dependent family members may make purchases or sale of the securities mentioned in website. Author may have positions in above stocks so have vested interest obviously in their going up or down as the case may be.

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