Blue Dart Q2 net rises 24% on service efficiencies
News Clip :Hindu Business Line, Hyderabad
03rd August, 2008.
Improvement in service efficiencies led Blue Dart Express to post a net profit growth of 24 per cent for the second quarter ended June 30, 2008.
Net profit for the said quarter was Rs 21 crore against Rs 17 crore in the corresponding quarter last year.
"Better integration of information technology helped us to strengthen our products. With IT, we worked towards reducing the cost of inventory through faster turn around time and reduced cost of monitoring the shipments too," said Mr Yogesh Dhingra, Finance Director and Chief Operating Officer of the company. The total income rose by 31 per cent to Rs 246 crore (Rs 188 crore).
Commenting on how the company has been maintaining profitability despite the high crude oil and aviation turbine fuel (ATF) prices, Mr Dhingra told Business Line that it has been possible through the transparency in the system of charging fuel surcharge from the customers, and also because there is not much competition in the air freight market leading to better quality service to the clients".
Keeping in line with a further increase of 2.8 per cent in ATF prices announced by the domestic oil marketing companies, Blue Dart also announced a price hike of 10 per cent in domestic air freight services and 15 per cent increase in its ground express products such as Domestic Priority, Dart Apex and Dart Surfaceline.
Blue Dart has a planned capex of Rs 1,000 crore for the next five years to be utilised for strengthening its product base. This will include cash outflow as well as lease rentals paid for its aircraft, said Mr Dhingra. Around Rs 200 crore will be invested every year for the above mentioned period.