Blue Dart ready for expansion as Q1 results exhibit high revenue & profit growth

Blue Dart Express Ltd., South Asia’s premier express air and integrated transportation & distribution company, declared its Q1 FY22 results yesterday. The company posted INR 1,172 million profit after tax as compared to previous year’s INR 294 million profit. Revenue from operations for Q1 FY22 stood at INR 12,933 million, registering a Y-o-Y growth of 49.6%. EBITDA for the quarter is INR 2,010 million, a Y-o-Y growth of 125%, while the EBITDA margin stood at 15.5%.

On the back of superior customer experience led by best in class service quality, the company witnessed healthy volume growth during the quarter and carried 77.08 million shipments (last year 51.22 million shipments) comprising of 278,393 tonnes (last year 184,431 tonnes).

Continuing geo political conditions during the quarter resulted in volatility in crude prices, however, the company has a well established fuel surcharge mechanism for over two decades which helps in minimising impact of fuel price fluctuations. Additionally, healthy top-line growth together with its journey of automation and digitisation has helped to improve speed, transparency and efficiency. With improved cash flows due to better receivable management, the company continues to remain debt free.

Our unwavering focus on customer centricity and delivering excellence reinforced by our technological expertise, accelerated pace in adopting digitisation and a task force of a dedicated workforce continues to drive our growth and achievement at all levels. While we continue to maintain a positive outlook we are also cautiously optimistic about what the future holds. We will continue our succinct focus on keeping a People First and Safety First approach while providing a best in class service to our stakeholders.”

Balfour Manuel, Managing Director, Blue Dart

Leveraging the elevated profits and demand for higher capacities, the company is now looking forward to expand its network. They have proposed to add two Boeing 737-800 freighter aircrafts during FY22. Currently, their fleet consists of 8 freighters, out of which 6 Boeing 757s will be phased out in the upcoming years, while Boeing 737-800s will continue to operate.

Eventually, more freighters will be introduced into Tier II cities based on load factors. Similarly, the company is expanding its ground hub and network to handle expected growth in volumes.Blue Dart is also eyeing increasing charter operations to China and Vietnam, and building gateways in smaller towns.

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