Blue Dart is a premier courier and integrated air express package distribution company in South Asia, which offers secure and reliable delivery of consignments to over 13,880 locations in India and 220 countries worldwide. Blue Dart was selected a Super brand from over 1,699 brands across 169 product categories in India. The Blue Dart team drives marketplace leadership through its motivated people force, dedicated air capacity, cutting-edge technology, innovation and value-added services, to deliver unmatched standards of service quality to its customers.

Performance for the quarter ended March 2006

For the quarter ended March 06, Blue Dart Express revenue stood at Rs 152 crore which was 25% higher as compared to corresponding previous quarter. As a percentage of sales, freight handling & services charges went up by 210 basis points to 59.4%. On the other hand, staff cost as a percentage of sales declined significantly by 290 basis points to 13.9%. It must be noted that staff cost in the quarter ended March 2005 included Rs.6.80 crore as a one-time retention compensation payable to the then managing director of the company which was subsequently reversed during the quarter ended September 2005. We have excluded the said one time compensation amount from staff cost of quarter ended March 2005 for computing the staff cost as a percentage of sales.

Other expenses also declined appreciably by 200 basis points to 6.6%. As a result the operating profit margin improved by about 280 basis points to 20.1%. The overall efficiency in operations along with rise in revenue aided the operating profit to increase considerably by 46% to Rs 30.50 crore.

Other Income stood at Rs 0.70 crore, as against Rs. 0.60 crore (excluding the other income on account of profit on disinvestments of 60% holding in Blue Dart Aviation) in the corresponding previous quarter with a marginal increase of 17%.

A marginal decline in interest expenditure by 14% to Rs 0.60 crore and negligible rise in depreciation by 7% facilitate the PBT to Rs. 26 crore showing a 58% growth over corresponding previous quarter.

In quarter ended March 2005 other income included Rs.3.6 crore on account of profit on disinvestments of 60% holding in Blue Dart Aviation Ltd. Thus the EO income amounts to Rs 3.6 crore as against aforesaid expense of Rs 6.8 crore in the corresponding previous quarter. Therefore, PBT after EO advanced by 95% to Rs. 26 crore against Rs. 13.30 crore in corresponding previous quarter.

Provision for tax including Fringe Benefit Tax (FBT) went up by 111% to Rs 7.80 crore, thereby limiting the PAT to Rs 18.20 crore with a substantial growth of 90%.

Performance for the year ended December 2005

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 are for 9 months as against 12 months in Financial Year 2005. To make facilitate comparison, the variance for full year has been calculated on annualized basis.

Sales for period 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%.

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.

Consolidated results for the year ended December 2005

The consolidated annual result of the company is not comparable, as the company has changed its financial year to calendar year basis. On an annualised basis, sales for fiscal ended December 2005 was up by 21% to Rs 416.60 crore. The operating profit increased by 12% to Rs 74.90 crore. Despite the drop in other income by 37% to Rs 0.8 crore, the decline in interest cost and depreciation by 54% and 8% to Rs 2.2 crore and Rs 13.3 crore, respectively, boosted the PBT by 23% to Rs 60.2 crore. The extraordinary income of Rs 6.8 crore as against an expense of Rs 3.20 crore in the previous year further boosted the PBT after EO by 44% to Rs 67 crore. The 25% increase in tax incidence to Rs 23.1 crore, restricted the growth in PAT, thereby finally recording an increase of 56% to Rs 43.9 crore. The share of associate’s profit and minority interest stood at Rs 0.5 crore as on December 2005 as against a loss of Rs 1.2 crore as on March ’05. The PAT after minority interest therefore registered a growth of 63% to Rs 44.4 crore.

Recent developments

In January 2006 company has launched an upgraded version of Mobile Dart, an SMS-based service that enables customers to track their shipments through text messages sent from anywhere in the country. The service does not require registration and customers would be able to avail themselves of the service by messaging their airway bill numbers. An automated response would provide the current status of their package.

Company is planning to add 45 new facilities to its existing 217 located across the country, with 14 of them being in the South. Company is also going to acquire 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.

Valuation

On equity of Rs 23.7 crore and face value of Rs 10 per share, annualised EPS for quarter ended March 2006 stands at Rs 30.7

The promoter’s stake as on 31^st March 2006 stood at 81.04%.

The market capitalization of the company was Rs. 1324.49 crore as on 27^th April 2006, as against Rs. 822.48 crore a year back.

The stock is trading at around Rs. 560.