Blue Dart Express (526612) Q4 02/03 earnings summary

Executive summary

• FY2002-03 revenue from operations rose 10% YoY to Rs.314.99 crore; standalone PBT reached Rs.31.19 crore and PAT Rs.21.08 crore.

• Performance grew despite the FedEx-to-DHL alliance transition, a 9% reduction in service income linked to the former alliance, higher aviation fuel costs and weak economic conditions.

• The proposed dividend increased to 27.50%; capital expenditure was funded from internal accruals, while borrowing costs were reduced through refinancing measures.

Financial highlights

• Standalone operating revenue was Rs.314.99 crore versus Rs.286.67 crore; operating profit was Rs.44.70 crore versus Rs.40.00 crore.

• Standalone PBT rose to Rs.31.19 crore from Rs.25.27 crore; PAT rose to Rs.21.08 crore from Rs.18.01 crore.

• Consolidated revenue was Rs.315.64 crore, PBT Rs.31.95 crore and PAT Rs.21.84 crore, versus Rs.287.63 crore, Rs.25.67 crore and Rs.18.29 crore, respectively.

• Standalone net interest expense fell to Rs.5.69 crore from Rs.8.52 crore; depreciation increased to Rs.7.82 crore from Rs.6.21 crore.

• Standalone cash from operating activities was Rs.44.41 crore; investing outflow was Rs.23.44 crore and financing outflow Rs.20.52 crore.

Outlook and guidance

• Plans called for adding an aircraft in H2 FY2003-04 to expand network capacity; aviation subsidiary had regulatory permission to add two aircraft to its existing fleet of three.

• Regional expansion into Bangladesh and Sri Lanka, subject to commercial viability, and development of ground warehousing and logistics were under consideration.

• Management expected improved performance in coming years and aimed to expand territory, aircraft capacity and product offerings.