BQ Prime’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BQ Prime’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.
We expect Q3 FY23 to be a mixed bag for logistics companies in our coverage universe. The overall cargo volume carried through ports decreased by 11% QoQ to 166.8 million tons in Q3 FY23 due to global slowdown and shutdown in China’s markets amid its stringent ‘zero Covid’ policy.
The logistics sector is witnessing challenges in the form of container shortage, higher freight cost and haulage cost. Despite all the macro-economic challenges, we expect Container Corporation of India Ltd. to report Q3 FY23 revenue growth of 4% QoQ and a marginal expansion in Ebitda margin by 60 basis points QoQ.
Whereas, Blue Dart Express Ltd. is expected to report 5.6% QoQ overall revenue growth and Ebitda margin expansion of 190 bps QoQ in Q3 FY23 as the company benefits from pass-through of fuel costs to its customer with a lag of one month.
For container freight stations/inland container depots operators, we expect stabilisation of direct port delivery volume to result in growth coming in line with industry while offering value-added services like packaging, warehousing and last-mile transportation will result in higher volume growth in future.
Click on the attachment to read the full report:
DISCLAIMER
This report is authored by an external party. BQ Prime does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BQ Prime.
Users have no license to copy, modify, or distribute the content without permission of the Original Owner.
