Intense competition to keep Blue Dart Express profit under pressure

While investments will pay later, intense competition to keep profit under pressure

The stock of Blue Dart Express has increased about 8 per cent from its lows a month-and-a-half ago due to strong revenue growth in the December quarter. Sales in the quarter were up 21 per cent year-on-year and 7 per cent sequentially. However, despite the growth, brokerages are not too enthused by the company’s prospects in the near term. 

While sales were robust, operating and net profit dropped 25-31 per cent as the company continued to invest in the roll out its ground network. The investments have been impacting margins, which are now at the 5-7 per cent levels as against