At the outset let me wish you all a healthy year and let's hope that before the year2020 ends the world gets rid of the devastating pandemic.
Overall the year 2019-20 was a challenging year across the globe. Though Indianeconomy had begun to regain momentum towards the end of quarter 3 of 2019-20 acountry-wide lockdown since late March 2020 due to outbreak of COVID 19 impactedthe Indian Economy. The COVID-19 pandemic saw the world grappling with its widespreadimpact on the economy. Businesses across sectors and geographies were disrupted due tomobility suspension. In this challenging environment Blue Dart worked closely with thecoronavirus task force of its parent company Deutsche Post DHL to minimise potentialimpacts and risks to the business. The task force provided vital updates and necessaryinformation which helped in planning communicating and engaging effectively with thecustomers and employees on precautionary measures and permissible guidelines to operateacross geographies during the lockdown.
The nation went into a Lockdown that impacted the economy and disrupted the supply-chain. It is estimated that the economy in Apr June quarter is expected to contractby 40 45 %. Our business from sectors such as BFSI e-commerce Automotive wasimpacted in other sectors like Pharmaceuticals Medical Equipments Consumer Electronicswe did well. Your Company drives market leadership through its motivated people dedicatedair and ground capacity cutting-edge technology wide range of innovative verticalspecific products and value-added services to deliver unmatched standards of servicequality to its customers through strong operational execution. Guided by these principlesthe "Blue Dart Way" led us to maintain our market leadership position in theindustry.
In these challenging circumstances the entire team of 12000+ employees are workingtogether "As One" and making daily incremental improvements within the companyits policies and procedures. This winning culture continues to positively transform yourorganization in innumerable ways.
Despite such a challenging scenario Income from operations for the financial yearended March 31 2020 stood at Rs 316639 Lakhs. Your Company posted loss before tax ofRs 4720 Lakhs for the financial year ended March 31 2020 on account of exceptional itemsin respect of implementation of Ind AS 116 related to Lease Accounting ( Rs 6662 lakhs)organization right sizing/restructuring ( Rs 6411 lakhs) and adverse impact of Covid-19 (Rs 5420 lakhs) aggregating to Rs 18493 lakhs. Your Company carried over 2403 Lakhsdomestic shipments and over 8 Lakhs international shipments weighing more than 769490tons during the financial year ended March 31 2020.
Considering overall performance for the current year emerging challenges consequent toCOVID-19 uncertain economic environment and with an objective to conserve cash and ensuresufficient liquidity for operations your Directors do not recommend dividend for thefinancial year ended March 31 2020. Even as this Annual Report gets published theCOVID-19 situation continues to be fluid and unpredictable. Over the years your Companyhas built a strong foundation and best-in-class processes through BusinessContingency and Continuity Planning' (BCCP) ensuring business operations run seamlesslyduring any unforeseen event. The emergency caused by coronavirus highlights both thechallenges and the importance of building a holistic management process.
Your Company enacted procedures to protect its employees customers and communitiesas their safety is paramount. Blue Darters utilized remote-work capabilities to stayconnected and ensured to keep the trade engine running. It was a proud moment to work withthe Indian Government and private healthcare companies supporting the company's missionto ensure continuity of the essential supply chain' for the nation in its fightagainst the COVID-19 pandemic. Blue Dart's dedicated six Boeing 757 freighters had beendeployed to fly between Indian cities supporting critical shipments of pharmaceuticals andmedical supplies. The efforts were acknowledged by the Government authorities. Howeverwith COVID-19 accelerating the growth of the national economy will be impacted throughreduced demand and further compounded by supply chain disruptions. India's gross domesticproduct (GDP) growth during calendar 2020 has been revised to 2.5 per cent from an earlierestimate of 5.3 per cent in the wake of the lingering impact of the coronavirus pandemicand later on May 8 2020 revised to zero. The rating company expects a bounce back to6.6% growth in FY 2022 assuming a gradual pick-up in economic activity and demand in thesecond half1. The future is more challenging than ever before. Your Company hasput in place measures to mitigate the challenging situation by ensuring businesscontinuity resource optimisation improving cost efficiencies enhancing service qualityand investing in technology enabled solutions to drive business growth and provide aseamless experience for all stakeholders (customers and employees). Blue Dart is focusingon delivering excellence in a digital world to drive forward the business. It hasstreamlined its IT infrastructure adhering to global benchmarks. With a customer focusedstrategy your Company remains committed to serve its customers and retain its leadershipposition in the air and ground express logistics industry in India. In pursuit of becomingfuture ready we are building an agile and nimble organization that can withstand economicheadwinds and maintain sustainable profitability on the basis of a strong foundation.
Accordingly your company undertook a right sizing exercise to provide long term valuecreation for stakeholders.
Your Company added two new state-of-the-art AIR HUBs at Chennai and Mumbai Airport in2019 to further strengthen the Air Express service and build operational excellence andefficiency. Blue Dart has been certified to global ISO 9001-2015 standards. Your companyendeavours not only to comply with statutory requirements but also follow the principlesof good and effective Corporate Governance that lay down a strong emphasis on integritytransparency and overall corporate accountability. It gives me immense pleasure to informyou that our efforts and good practices have been applauded and recognized by variousexternal organisations. Your Company won the coveted Golden Peacock Award forCorporate Ethics 2019' at The Institute of Directors 4th Annual GlobalConvention on Corporate Ethics & Risk Management held in January this year atSingapore. Corporate Responsibility has been an integral part of the organisation sinceits inception in 1983. Your Company believes that while continuing to generate wealth forits shareholders it is equally important to share it equitably with the community.Globally DPDHL group has embarked on a journey to achieve zero emissions by 2050 and bethe industry benchmark for responsible business practices. As part of the group Blue Dartis proudly committed to contribute to the group's mission of "Zero Emission by2050" and work towards amplifying its initiatives under the theme of "ConnectingPeople Improving Lives".
In the year gone by 99.18% of Blue Darters participated in the Annual EmployeeSatisfaction Survey (ESS). Pride in working for Blue Dart' emerged as the highestscored item with 96.4%. This was further validated with prestigious industry recognitionsamong one of India's Best Companies to Work For - 2019' by The Great Place to WorkInstitute India ranked amongst Best Multinational Workplaces in Asia 2019' by TheGreat Place to Work Institute Asia voted a Superbrand' and Reader's DigestMost Trusted Brand' listed as "Company with Great People Managers" by GreatManager Institute and Forbes to name a few. As we embark on this next chapter of ourjourney I would like to acknowledge and thank our long-term Director Mr. MalcolmMonteiro who resigned from the Company's Board with effect from 17 January 2020 for hisvaluable contribution to Blue Dart over the last 3 decades and wish him great success forthe future.
I would like to take this opportunity to reiterate that your Company stands united withthe nation during this challenging phase of COVID-19. Your Company played an active rolein the nation's fight against the COVID-19 Pandemic by transporting over thousands of tonsof essential supplies in coordination with the Government of India several StateGovernments Municipalities Pharmaceutical companies Hospitals and other Researchinstitutions. The company is also honoured to be a part of the Government's LifelineUdan' initiative.
On behalf of the Board of Directors I would like to take this opportunity to thank ourcustomers shareholders and Blue Darters for their continued commitment and support. Itgives me great pleasure to share with you the Annual Report of your Company for the yearended March 31 2020.
| ||Warm regards |
|Mumbai ||Sharad Upasani |
|June 15 2020 ||Chairman |