Commenting on the results Malcolm Monteiro, Managing Director, Blue Dart Express Ltd., stated that - "This quarter we have focused on strengthening and expanding our air infrastructure with a view to support India's economic growth and increasing demand for distribution. Two Boeing 757-200 freighters have been inducted into our existing fleet of five Boeing 737-200s, taking our air capacity to 250 tonnes per night across 60 route connections. This provides Blue Dart's distribution network with an enhanced capability, giving us a major edge in the time-critical express market."

Blue Dart, South Asia's premier courier and integrated air express package Distribution Company, offers secure and reliable delivery of consignments to over 14,000 locations in India and 220 countries worldwide. Blue Dart was selected a Business Super brand from over 1699 brands across 169 product categories and a Readers Digest's Most Trusted Brand across 42 product categories in India.

Performance for the quarter ended Jun’06:

Blue Dart for the second quarter ended Jun’06 registered a Net sales growth of 22% to Rs 157.40 crore. The operating margin stood reduced by 20 bps to 16.7%. This led 20% spurt in the operating profit to Rs 26.32 crore. The freight, handling and service cost as a proportion to sales increased by 290 bps to 63.2% owing to additional operating expense on account of new Boeing purchased. However the decline in staff cost by 200 bps to 13.2% and other expenses by 70 bps to 6.9% cushioned the rise to an extent.

The other income for the period declined by 67% to Rs 0.10 crore thus, restricting the PBIDT growth by 19% to Rs 26.42 crore. The interest outgo for the company declined by 50% to Rs 0.40 crore. Nevertheless the 11% increase in depreciation to Rs 4.90 crore confined the PBT growth by 24% to Rs 21.12 crore. There was an extraordinary expense of Rs 2.32 crore owing one time expense on new Boeing added to the fleet. This coupled with 17% increase in tax element at Rs 7.70 crore has pulled the PAT to Rs 11.10 crore, posting a growth of 7% on y-o-y basis.

For the six months ended Jun’06, the topline of the company increased by 23% to Rs 309.30 crore. The Company has changed its year-end date to 31^st December as against 31^st March in the previous year. Consequently the financials for the six months ended Jun’05 has been not YTD figure but aggregated to facilitate comparison. The operating margin increased by 130 bps to 18.4% leading the operating profit to post a growth of 33% to Rs 56.82 crore. Moreover the other income for the period stood stable at Rs 0.80 crore.

The interest cost declined by 33% to Rs 1 crore. However the 8% increase in depreciation cost at Rs 9.50 crore restricted the PBT at Rs 47.12 crore, up by 41% on y-o-y basis. The extraordinary expenses stood at Rs 2.32 crore compared to Rs 3.20 crore in the corresponding previous quarter. Moreover the tax outgo increased by 52% to Rs 15.50 crore. Owing to spurt in EO and tax outgo the PAT confined its growth by 47% to Rs 29.30 crore.

The Company has changed its year-end date to 31^st December as against 31^st March in the previous year. Consequently the financials for year-ended 31^st December 2005 is for 9 months as against 12 months in FY’05. To make facilitate comparison, the variance for full year has been calculated on annualized basis.

Sales for fiscal year ended Dec ’05 stood up at Rs 415.10 crore translating into a growth of 21% on annualized basis. The operating margin stands at 17.8% as against 17.9%. The operating profit has increased by 20% on annualized basis to Rs 74 crore on account of a decrease in staff costs (as a % to sales) by 240 bps to 14.4%. However, freight handling and servicing costs are up by 90 bps to 59.8%, whereas other expenses increased marginally by 20 bps to 8.0%. Other income recorded a decline of 3% to Rs 0.80 crore. Net interest expenses declined by 35% to Rs 2.30 crore.

Depreciation costs went up by 14% to Rs 13.10 crore. During the year, the company had reversed a provision of Rs 6.8 crore made in FY 2004-05.The provision was made for paying one-time retention compensation to the Managing Director. Thus the EO income amounts to Rs 6.8 crore as against an expense of Rs 3.2 crore in the previous year. Therefore, PBT after EO advanced by 47% to Rs 66.20 crore. Provision for tax including deferred tax increased by 44% to Rs 22.80 crore, thereby increasing the PAT by 48% to Rs 43.40 crore.

Other developments:

Blue Dart has acquired two Boeing 757 aircraft to supplement its current fleet of five Boeing 737-200 aircraft that it operates in the domestic skies to transport cargo. It has also announced its outbound gateway at Hyderabad, connecting the city with top cargo hubs such as Chennai, Mumbai, Delhi, Kolkata and Bangalore which together account for 90% of the air cargo distribution across the country. The company is likely to leverage on its latest acquisition of two Boeing 757s to offer outbound services to Hyderabad and hopes to tap the potential in segments such as IT and pharmaceuticals.

The company has also added its seventh aviation hub in Ahmedabad for dedicated access and service to the growing Gujarat region and also planning to add 45 more such facilities across the country with Rs 25-crore investment.

The company’s share price is trading at Rs 472.