Profit growth slows to 30% at India’s Blue Dart Express
DHL’s Indian express subsidiary Blue Dart Express achieved a 30% increase in profits and operational income in 2011, compared to the calendar year 2010. The company achieved a profit after tax of 1.24bn rupees for the 2011 full year, on an operational income of 14.9bn rupees.
Profit in the final quarter of 2011 slipped 6.7% compared to the same quarter in 2010, to 223m rupees. Although operational income for the quarter grew 23% year-on-year to 3.93bn rupees, operating costs in the quarter jumped 30%.
In the flourishing Indian parcel and courier market, the Mumbai-based company handled more than 98.85m domestic shipments during the year, along with 810,000 international shipments, combining to represent more than 423,000 tonnes of parcels and documents.
The figures represent 13.6% volume growth for the company’s domestic services, 9.4% growth on the international side. During the year, labour costs at Blue Dart increased 24%, while the company’s freight handling and servicing costs rose 35%.
This year’s growth in profits was not quite as dramatic as the 55% growth in profit seen last year, but there was consistency in how Blue Dart executives viewed the results and outlook for 2012.
Commenting on the results in a statement for press and investors, Blue Dart Express managing director Anil Khanna repeated his analysis of last year’s results word-for-word.
Khanna said: “The 2011 results have been in sync with our outlined expectations for the year. Going forward, we are committed to remain the ‘Express & Logistics Provider of Choice’ for Indian industries. While continuing to be the `Trade Facilitators’ in the country, we shall continue our focus on addressing specific needs of the customers delivering customized solutions.”
The Blue Dart MD went on: “Blue Dart stands for Quality, Consistency, Reliability, Passion and Commitment. I thank every Blue Darter, associates, our customers and stakeholders for their support and being our brand ambassadors. Blue Dart has robust plans for India and we are delighted to serve in ‘Blue Dart Country’ with a business and human conscience to remain the customer’s First Choice.”
Blue Dart currently operates a network covering more than 27,500 locations, with warehouses in 65 Indian locations linking up to more than 220 countries and territories worldwide through DHL, which owns 81% of Blue Dart shares.
The Indian government is currently working on a new national postal policy that will seek to reign the country’s “unorganised” courier, express and parcels market, setting up a registration system for operators and potentially establishing service standards to tighten a market that is said to have around 2,000 players at present.
