Blue Dart Sees Healthy Earnings Growth This Year
Blue Dart expects to make fuel surcharge mechanism dynamic enough to address the impact of rising crude volatility.
Blue Dart Express Ltd. is confident of maintaining healthy profit and sales growth in the current financial year, led by stronger macros and waning effects of Goods and Services Tax implementation.
“Goods and services tax-led pain is stabilising now, resulting in healthy volume growth in businesses,” Aneel Gambhir, chief financial officer of the company, told BloombergQuint in a post-earnings interaction.
The logistics and cargo company’s fourth quarter earnings were subdued, as sales grew just six percent to Rs 717 crore while net profit rose 39 percent to Rs 34 crore. This was mostly due to volatility in crude prices, which led to higher fuel costs, and the change in business-to-consumer distribution model, said Gambhir.
Going ahead, the company expects to make the fuel surcharge mechanism dynamic to effectively address the impact of crude fluctuations, he said.
Key Earnings Highlights:
- Revenue up 6 percent to Rs 717 crore.
- Net profit up 39 percent to Rs 34 crore.
- Earings before interest, tax, depreciation and amortisation up 4 percent to Rs 57 crore.
- Ebitda margin contracted 20 basis points to 7.9 percent.
FY19 Outlook
Implementation of e-way bills for intra-state transportation of goods will also positively impact the courier service provider, Gambhir said.
With economic and macros factors stabilising, we expect our numbers to improve this year.Aneel Gambhir, CFO, BlueDart
Shares of the company were trading 0.51 percent lower at Rs 3,556.90 at 12.06 p.m. on the NSE.
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