Blue Dart Express reports Q3 loss of Rs 32 cr

Blue Dart Express reported consolidated net loss of Rs 31.92 crore in Q3 December 2019 as against net profit of Rs 32.02 crore in Q3 December 2018.

On a consolidated basis, Blue Dart Express' adjusted net profit fell 14.08% to Rs 27.51 crore on 0.02% increase in net sales to Rs 857.86 crore in Q3 December 2019 over Q3 December 2018.

Consolidated pre-tax loss was at Rs 37.53 crore in Q3 December 2019. PBT (profit before tax) was Rs 49.09 crore in the corresponding period last year.

The company accounted an exceptional item of Rs 64.11 crore during the quarter. With an intention to create long term value for its stakeholders, management of the company conducted an organisation right sizing exercise which has a impact of Rs 46.09 crore on the Q3 result. The management further decided to discontinue certain business activities and change the operating software for certain business function and accordingly the net book value of related assets aggregating to Rs 18.02 crore has been written down.

Effective 1 April 2019, Blue Dart has adopted the Ind AS 116 new accounting standard due to which there is higher impact on profit as these are long term leases related to air infrastructure.

The Q3 results was released after trading hours yesterday, 17 January 2020. Ahead of the results, shares of Blue Dart Express rose 0.48% to end at Rs 2,665.80 on Friday.

Commenting on the results, Balfour Manuel, the managing director of Blue Dart Express, has stated, "While GDP growth has been revised from 6.1% to 5% for 2019-20, with our clear focus on service quality and cost efficiencies we are mitigating the challenging situation reasonably well. In our endeavor to build better future for Blue Dart, the Company has undertaken organization right sizing exercise for long term value creation for stakeholders. Our customers will always be at the center of our business and hence we will continue to invest to enhance our infrastructure and technological capabilities to stay relevant to their needs."

"With our customer focused strategy, we remain committed to serving Blue Dart country and sustaining leadership in air and ground express industry in India. We are thankful to our stakeholders, shareholders, customers, partners and our highly passionate team of Blue Darters who drive us to strive for excellence every day," he added.

Blue Dart Express is engaged in the business of integrated air and ground transportation and distribution of time sensitive packages to various destinations, primarily within India. The company provides courier and express services.

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