Blue Dart Net Profit Up 38%

Mumbai : October 14, 2003:

Blue Dart Express Limited, South Asia's largest integrated air express, courier and logistics company, declared its financial results for the second quarter at a Board Meeting held in the city today.

The Company has recorded a Net profit of Rs 6.64 crores in the second quarter with an increase of 38% over the corresponding quarter in the previous year, and Rs 12.19 crores in the first half, an increase of 31% over the previous year's first half.

Income from operations in the second quarter has increased by 11% as compared to the corresponding prior period. The income has increased by 22% on a comparative basis without considering the income that the Company had earned from its erstwhile international alliance contract, which was allowed to expire by the Company on 30th September 2002.

Commenting on the results, Clyde Cooper, Managing Director, Blue Dart Express Limited said, "It is our endeavour to provide continuous value to our customers. In the past quarter, we have further strengthened our capacity and infrastructure and technology prowess; we have expanded our presence in the South with 12 new direct served locations, expanding our reach to an additional 198 locations; we have acquired a fourth aircraft to be inducted into operations later in the year; and we have increased and improved our warehousing facilities in Maharashtra including our important hub at Bhiwandi besides adding on and upgrading our facilities in different parts of the country."

Added Mr. Cooper, "August and September have generally been good months for our business. The improved business environment has given a fillip to distribution, and our strengthened quality capacity is poised to support this growth".

Blue Dart, South Asia's leading courier and integrated air express package distribution Company with dedicated aviation infrastructure, offers secure and reliable delivery of consignments to over 13,600 locations in the region. Through its sales alliance with world #1, DHL Worldwide Express, Blue Dart offers its customers the DHL advantage of global reach, unmatched cross-border specialisation and greater network flexibility. Blue Dart has recently been selected a Superbrand from over 700 brands across 98 categories in India. The Blue Dart team drives marketplace leadership through its unique aviation system, cutting-edge technology, innovation and value-added services to deliver unmatched standards of service quality to its customers.

Notes:

1. The Profit After Tax has recorded an increase of 38% in the second quarter as compared to the corresponding second quarter of the previous year and by 31% in the first half over the first half of the previous year.
2. Income from operations in the second quarter has increased by 11% as compared to the corresponding prior period. The income has increased by 22% on a comparative basis without considering the income that the Company had earned from its erstwhile international alliance contract,which was allowed to expire by the Company on 30th September 2002.
3. The Company entered into a Sales Alliance agreement effective 1st October,2002 with DHL Worldwide Express, to provide Blue Dart customers the advantages of DHL's global reach, unmatched cross-border specialisation, greater network flexibility and hi-tech infrastructure, in replacement of its erstwhile alliance of 18 years for international outbound deliveries of Blue Dart's international customers.
4. The Company is primarily engaged in a single segment business of integrated transportation and distribution of shipments and is managed as one entity, for its various service offerings and is governed by a similar set of risks and returns. The said treatments is in accordance with the guiding principles enunciated in the Accounting Standard on Segment Reporting (AS-17 )issued by the Institute of Chartered Accountants of India.
5. The Consolidated Financial Results represent those of Blue Dart Express Limited and its wholly owned subsidiary, Blue Dart Aviation Limited. The Company has consolidated its results based on the Accounting Standard on Consolidation of Financial Statements ( AS-21 ) issued by the Institute of Chartered Accountants of India.
6. The Company has made provision for tax in compliance with the Accounting Standard on "Accounting for Taxes on Income" (AS-22), which is inclusive of the deferred tax liability. EPS for the year ended March 31, 2003 was Rs 7.08 after considering provision for tax for earlier years.
7. The Accounting Standard on Intangible Assets (AS-26) became mandatory effective accounting periods commencing on or after April 1, 2003. Pursuant to the same the Company had eliminated Rs.227.92 lacs with a corresponding adjustment to the opening balance of reserves in its first quarter results. The Accounting Standards Board of the Institute of Chartered Accountants of India had recently issued a clarification dated October 7, 2003 and accordingly entire amount of Rs 227.92 lacs has been added back to the reserves and amortised in accordance with the earlier accounting policy of the Company.
8. The Company did not have any investor complaints pending as on July 1, 2003 and as on September 30, 2003. There were six investors' complaints received and disposed off during the quarter ended September 30, 2003.
9. The Prior period's figures have been regrouped and reclassified wherever necessary to conform to current period's classification.
10. In accordance with the requirements of clause 41 of the listing agreement with the Stock Exchanges, the Statutory Auditors had performed limited review for the first quarter ended 30th June'03 and have performed the audit for the half year ended 30th September'03. There have been no qualifications in the audit report issued for the above period.
11. The above results were reviewed by the Audit Committee and were thereafter approved by the Board at its meeting held on 14th October,2003

Date : 14th October,2003
Place : Mumbai

For further information contact :

marketing@bluedart.com
Dated : October 14, 2003