Anil Khanna, Managing Director, Blue Dart Express said, "Blue Dart has, since inception, done things differently to embed an infallible trust in the brand and deliver on its promise. Our aim has been to continuously deliver the highest levels of service excellence and to this end our Quality initiatives - First Choice & Net Promoter Approach (NPA) have played a consistent and pivotal role. Added to this, in our mission to provide complete end-to-end solutions with enhanced focus on specific verticals, we have launched innovative and customized products to meet the explicit and implicit customer needs & expectations. All our initiatives like Key Account Management, new product developments etc are designed at strengthening and enhancing Blue Dart's premier position as the leading air and ground express distribution service provider in India. Blue Dart remains committed to complement and enhance the business prospects of the country, especially in Tier 2 & Tier 3 cities, where Blue Dart sees great potential and opportunities unfolding. As a company, we are committed to remaining a customer-centric and employee-focused organization, agile towards continuous innovation, people-friendly policies / culture and always deliver beyond the expectations of our stakeholders and employees."

Quarterly Performance

Total income from operations for the quarter ended June 2010 rose by 33% to Rs 277.31 crore. Operating profit margins increased by 460 bps to 14.6% boosting operating profit to increase by 95% to Rs 40.56 crore. The increase in the margins is on the back of decline in the all overheads as percentage to sales, net of stock adjustments. Fright, handling and servicing costs was declined by 230 bps to 63.7% of sales. Employee cost and other expenditure fell by 170 bps to 13.1% and 70 bps to 8.5%, respectively. Other income decline by 23% to Rs 0.92 crore and depreciation remains flat at Rs 6.46 crore led PBT to increase by 113% to Rs 36.84 crore. Fall in the effective tax rate by 350 bps to 30.5% further boosted net profit to increase by 124% to Rs 25.62 crore.

Half yearly Performance

For the half year ended June 2010, total income from operations rose by 28% to Rs 535.01 crore. Operating profit margins rose by 510 bps to 15.1% lifted operating profit to increase by 94% to Rs 80.65 crore. Other income fell by 32% to Rs 1.76 crore and marginal increase in the depreciation up by 3% to Rs 9.31 crore led PBT to increase by 107% to Rs 73.10 crore. Thanks to fall in the effective tax rate by 200 bps to 32.4% paved net profit to increase by 114% to Rs 49.40 crore.

Valuation

The scrip is trading at Rs 1094 on BSE. Currently, Bluedart is trading at TTM EPS worked out be Rs 31.9 and discounting at 34.3 times.