Blue Dart Express Q1 Results: Firm reports over 48% decline in Q1 profit

Indian logistics services provider Blue Dart Express on Thursday reported a drop in profit for the third quarter in a row, as reduced fuel costs were yet to show an impact, and demand was soft.

The Deutsche Post-controlled company posted a consolidated net profit of 621.8 million rupees ($7.6 million) in the quarter ended June 30, down 48.4% from a year ago.

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KEY CONTEXT

Aviation turbine fuel, which accounts for about 40% of operating costs for express logistics companies, corrected sequentially during the June-quarter.

The high prices had led to drops in profit for Blue Dart, which had about a 60% market share in the organised air express segment at the end of the last fiscal year, in the earlier two quarters.

Slowed demand within e-commerce segments have impacted logistics companies as well, with Blue Dart's peer, Mahindra Logistics, posting a loss in the April-June quarter earlier this week.

Blue Dart added two Boeing 737 aircraft in fiscal 2023 to cater to tier-II and tier-III cities, which analysts believe helps boost its volumes.

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