Margin improvement a positive for Blue Dart

Revenue growth is expected to be better in the coming quarters

After several quarters of muted performance, Blue Dart posted a better-than-expected show in the September quarter (Q2). While revenue growth continues to be a challenge with the company posting single-digit growth for the third consecutive quarter, gross and operating profit margins were the highest in four quarters, signalling a reversal on the profitability front. 

Operating profit margins, which had hit a multi-year low of 6.9 per cent in the June quarter, rebounded over 400 per cent on a sequential basis to 10.9 per cent in Q2. This came on the back of higher gross margins and lower overhead costs. The company