Blue Dart Express, the DHL Express Indian subsidiary, recorded a solid profit increase of over 10%in 2008 but saw slow growth during the year due to the increasing impact of the global financial
crisis on the Indian express market.For the 2008 financial year, Blue Dart posted a Rs 773.5 million (€ 12.4 million) profitafter tax, up by 10.6% on the same period in 2007. Revenues increased by 21% to Rs 9,794 million(€154.54 million), and the company handled 79.7 million shipments during the year. In addition,Blue Dart Express acquired more shares of its subsidiary Blue Dart Aviation Limited, therebyincreasing its holding from 40% to 49%.
But in Q4, operating revenues dropped 2.3% to Rs 2,273.4 million (€36.31 million) as thedownward trend starting in the first quarter of 2008 worsened. The company’s Q4 net profit dropped34.5% to Rs 124 million (€1.96 million).
Anil Khanna, Managing Director, Blue Dart Express Ltd, commented: “The softening trends thatcommenced in the first quarter of 2008 worsened towards the last quarter of the year with a globaldepressed economic and financial environment. With the company having essentially a ‘fixed cost’based business model, the deceleration in volume growth is having an adverse impact on margins.”
In 2009, Blue Dart plans to invest Rs 1 billion (€16 million) in the company’s infrastructureas a part of its Rs 10 billion (€160 million) investment plan over the short-to-medium term. Thecompany already inducted one more B-757 freighter to its fleet of 3 B737s and 3 B757s last year.
Moreover, Blue Dart reportedly plans to launch new customer products. Some of these aredesigned specifically for industries with time-definite requirements to increase flexibility of theshipper and consignee and improve customer satisfaction, the Indian website Moneycontrol.comreported.
Blue Dart said it was committed to 25 initiatives to be rolled out in one year’s time,focusing on customized requirements for specific clients and to improve its already best-in-classservice quality, by pursuing programs like First Choice & Net Promoter Approach.
“Going forward, our focus would be to consolidate our leadership position in the air expressproducts while strengthening our ground express product offering. In the coming year, we wouldcontinue to set benchmarks and standards in the Indian express market and facilitate trade andcommerce for a greater India,” Khanna added.
