Blue Dart Sees Healthy Earnings Growth This Year
News Clip: Bloomberg Quint
9th May, 2018
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 stabilizing now, resulting in healthy volume growth in businesses,” Aneel Gambhir, chief financial officer of the company, told Bloomberg Quint 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.
Earnings before interest, tax, depreciation and amortization 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.