Blue Dart loses US$4.65 million in Q3 on back of restructuring initiative
INDIAN express firm Blue Dart has suffered a third-quarter loss of INR330
INDIAN express firm Blue Dart has suffered a third-quarter loss of INR330.8 million (US$4.65 million) compared with a profit of INR313.5 million for the same period last year, after implementing a 'right sizing' programme.
Revenues from operations for the period were flat on a year earlier at INR8.5 billion, London's Air Cargo News reported.
The company, which is majority owned by Deutsche Post DHL, said that the operating loss was accounted for by INR641 million of exceptional items as it embarked on a right sizing programme.
Blue Dart managing director Balfour Manuel said: 'While [India's] GDP growth has been revised from 6.1 per cent to five per cent for 2019-20, with our clear focus on service quality and cost efficiencies we are mitigating the challenging situation reasonably well.
'In our endeavour to build better future for Blue Dart, the company has undertaken organisation right sizing exercise for long-term value creation for stakeholders. Our customers will always be at the centre of our business and hence we will continue to invest to enhance our infrastructure and technological capabilities to stay relevant to their needs.'
In a related development, DHL eCommerce chief executive Ken Allen said in an interview with The Economic Times that the company had over invested in India and specifically in Blue Dart. He said that the company has made cutbacks and would now look to build up incrementally.
Blue Dart Aviation has a fleet of six Boeing 757 freighters, providing a network payload of 504 tonnes across 74 route connections each night.