Consolidated total income from operation for FY'08 grew by 21% to Rs 981.61 crore and net profit increased by 10% to Rs 77.77 crore.

Speaking on the occasion Anil Khanna, Managing Director, Blue Dart Express said, "We are a customer-led company, and continue to be driven by their needs. The year 2008 marked the completion of Blue Dart's 25 years of innovating and providing quality service to our customers. The softening trends that commenced in the first quarter of 2008 worsened towards the last quarter of the year with a global depressed 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. Going forward our focus would be to consolidate our leadership position in the air express products while strengthening our ground express product offering. In the coming year we would continue to set benchmarks and standards in the Indian express market and facilitate trade and commerce for a greater India."

Consolidated Yearly Performance

Total income from operation for the year ended December'08 on consolidated basis grew by 21% to Rs 981.61 crore. Operating profit margins declined by 270 bps to 13.3% and operating profit remain flat at Rs 130.72 crore. Other income rose by 25% to Rs 3.26 crore. The interest income for the year stood at Rs 2.17 crore as against of interest cost of 0.32 crore and 31% plunge in depreciation to Rs 16.75 crore lifted PBT to report 10% growth to Rs 119.40 crore. Marginal rise in the effective tax rate by 40 bps to 34.9% has lifted up PAT growth by 10% to Rs 77.77 crore.

Standalone Quarterly Performance

Net sales for the quarter ended December'08 of Blue Dart declined by 2% to Rs 227.34 crore and other income from operation stood at Rs 1.94 crore as against nil in the corresponding pervious period. Resultantly, total income from operation degrowth restricted to 1% to Rs 229.28 crore. Operating profit margins contracted by 460 bps to 10.1% due to spike in Freight, Handling and Servicing costs and other expenditure as percentage to total income, and led operating profit to decline by 32% to Rs 23.05 crore. Freight, Handing and Servicing costs and other expenditure rose by 480 bps to 66.6% and 160 bps to 10.1% of sales. Employee cost declined by 190 bps to 13.2% and restricted the fall in the margins.

Other income declined by 27% to Rs 0.70 crore. Interest income of Rs 1.50 crore compared to interest cost of Rs 0.03 crore and depreciation declined by 29% to Rs 4.39 crore registered fall in PBT to 28% at Rs 20.86 crore. The effective tax rate rose by 630 bps to 40.5% piloted net profit to report degrowth of 34% at Rs 12.41 crore.

For year ended December'08, the total income from operation registered moderate growth of 21% to Rs 979.42 crore. Operating profit margins declined by 260 bps to 13.3 restricting operating profit growth to 1% Rs 130.07 crore. The combine effect of rise in the other income by 21% to Rs 3.11 crore, interest income of Rs 2.14 crore compared to interest cost of 0.40 crore in the corresponding pervious period and fall in deprecation by 31% to Rs 16.57 crore boosted the PBT to grow by 11% to Rs 118.75 crore. Despite of 50 bps jump in effective tax rate to 34.9%, the net profit registered moderate growth of 11% to Rs 77.35 crore.

1. The income from operations has recorded an increase of 20.49% for the year ended December 31, 2008 over the corresponding year ended December 31, 2007. The softening trends that commenced in the first quarter of 2008 worsened towards the last quarter of the year. With a global depressed economic environment, income from operations for the current quarter is lower by 2.34% vis-à-vis corresponding quarter of the previous year. With the Company having essentially a ‘fixed cost' based business model, the deceleration in volume growth is having an adverse impact on margins.
2. During the quarter ended September 30, 2008 the Company acquired 21, 60,000 equity shares of Blue Dart Aviation and thereby increased its holding from 40% to 49%.
3. The Board of Directors has recommended a dividend of 10% for the year ended December 31, 2008.
4. Promoter's shareholding remains flat at 81.03% as on 31^st December'08.
5. The scrip is quoting at Rs 441 on 29^th January'2009 in BSE.