Blue Dart Express (526612) Q4 2006 earnings summary

Executive summary

• FY 2006 revenue was Rs 6,680 million standalone and consolidated net profit was Rs 511,295 thousand; comparisons with Apr-Dec 2005 cover only nine months and are not like-for-like.

• Investment and network expansion strengthened air capacity and reach; the board recommended a 10% dividend, or Rs 1 per equity share.

Financial highlights

• Standalone service charges were Rs 6,680.235 million; operating profit (EBITDA) Rs 1,014.577 million; PBT Rs 778.699 million; PAT Rs 502.275 million.

• Consolidated service charges were Rs 6,708,087 thousand; EBITDA Rs 1,026,172 thousand; PBT Rs 788,661 thousand; net profit Rs 511,295 thousand.

• Consolidated net profit compared with Rs 443,855 thousand for Apr-Dec 2005; standalone PAT compared with Rs 434.094 million for the same nine-month prior period, so annual comparisons are not comparable.

• Apr-Dec 2006 sales grew 24.32% YoY; reported growth of 28.95% is also cited for that nine-month period, led by Domestic Priority and Dart Apex.

Outlook and guidance

• Plans include adding dedicated air and ground carriage capacity and expanding ground transportation, supported by road corridors, domestic consumption and growth in Tier II and Tier III cities.

• Directors expected improved performance in coming years; ground expansion may require substantial investment, with higher low-cost capacity creating yield pressure.

• Industry outlook cited India GDP growth projections of 8–10% over coming years and organised domestic express market growth to Rs 19.44 billion by 2010-11, at 17.2% CAGR.