Blue Dart Express, DHL’s Indian express subsidiary, suffered a 20% drop in net profits for thethird quarter of 2008 despite a 26.8% rise in revenues.
The company raised revenues for July-September 2008 by 26.8% to Rs 2,628.4 million (€42.8million) but operating costs soared 35%, leaving operating profits down by 24.8% to Rs 197.1million (€3.2 million). Q3 net profits dropped by 22% to Rs 135.84 million (€2.2 million).
“The softening trends that commenced during March 2008 continued during the quarter. With thecompany having essentially a ‘fixed cost’ based business model, the deceleration in volume growthsis having an adverse impact on margins,” the company noted.
Anil Khanna, Managing Director, Blue Dart Express Ltd. said: “Our results are a validation ofour customer’s faith in us and of our commitment to serve their business. We are proud to bepositioned as the only service provider with a distinctive capability to offer the entire gamut ofexpress distribution solutions. As we move forward, we are committed to providing our customerssuperior service experience and meet and exceed their express distribution needs.”
