The slowdown in the Indian economy this year has hit profits at the country’s leading expressoperator, Blue Dart Express.
Indian economic growth slowed to 5% in the year ending March 2013 compared to an average of 8%over the past decade, and is expected to be about 5% again this financial year, according to Indianmedia. The World Bank today cut its forecast for Indian GDP this financial year to 4.7% from theprevious forecast of 6.1% while the IMF is predicting just 3.8% growth for the 2013 calendaryear.
This slowdown was apparent in the second quarter and half-year figures (up to September 30,2013) announced yesterday by Blue Dart, which is 75% owned by DHL Express and also listed on theBombay Stock Exchange.
The company’s revenue increased by nearly 13% to Rs 4.71 billion (€56.3 million) in theJune-September quarter, according to unaudited results. Operating profits dropped 4.3% to Rs 435million (€5.2 million) from Rs 454.7 million one year earlier due to higher transportation andstaff costs. The net profit dropped 6.6% to Rs 300.6 million (€3.6 million).
In the first half of the 2013/14 business year, the company’s revenue increased by 9% to Rs 9.25billion from Rs 8.5 billion one year earlier. Six-month operating profits were slightly higher atRs 1,035 million but net profits dropped nearly 3% to Rs 707 million from Rs 728 million due tohigher tax payments.
Anil Khanna, Managing Director, Blue Dart Express Limited said: “In tough times like these whenthe industry is grappling to cope with the current economic scenario and the slow GDP growth, wehave worked as one team with determination to overcome the challenges and have kept up to ourcommitment to service excellence.”
He added: “We are delighted to serve in “Blue Dart Country” with a business and human conscienceto remain the Provider, Investment and Employer of Choice. We will continue to focus on productinnovation, customer centricity, deliver world-class service quality and maintain our reliabilityquotient.”
