Blue Dart Express (526612) Q4 96/97 earnings summary

Executive summary

• FY ended Mar. 31, 1997 revenue rose to Rs.1,573,876 thousand from Rs.1,150,974 thousand, while net profit fell to Rs.4,910 thousand from Rs.95,966 thousand.

• All-jet cargo aviation launched, improving service capability, but high start-up fixed costs, delayed interline approvals and an aircraft disruption constrained volume growth and profitability.

Financial highlights

• Revenue Rs.1,573,876 thousand; operating expenses Rs.1,465,092 thousand; profit before tax and unusual items Rs.14,116 thousand, including Rs.8,479 thousand restructuring costs.

• Reported PBT Rs.5,637 thousand and net profit Rs.4,910 thousand, versus PBT Rs.102,802 thousand and net profit Rs.95,966 thousand in FY 1995/96.

• Profit before tax, interest, depreciation and unusual item was Rs.108,784 thousand, compared with Rs.118,566 thousand in FY 1995/96; EPS was Rs.0.55 and recommended dividend was 15%.

Outlook and guidance

• Restructuring activities, including organizational realignment and service-centre rationalization, were expected to finish by Mar. 31, 1998; further restructuring costs may arise in FY 1997/98.

• Domestic network expansion through FCCs and RSPs is intended to take service and collection points above 1,000 in coming years.

• A FedEx agreement effective Oct. 1, 1997 adds exclusive handling of FedEx direct international business in India and preferred-consolidator status for FedEx International Priority services.