Multiple air pockets hit Blue Dart

High competition and increasing costs hit revenue and profit

The Blue Dart stock has been caught in a downtrend spiral since the beginning of July, shedding 18 per cent on worries that the company is losing out to competition and weakening profitability profile. The Street worries were not unfounded, with the company declaring a less-than-expected June quarter results.

A high-cost base and a muted revenue growth led to a 600 basis points year-on-year (y-o-y) decline in operating profit margins at 6.9 per cent. Net profit, too, was down 52 per cent to Rs 21 crore over the year-ago quarter. However, revenues were up about seven per cent at Rs