Blue Dart Express Q3 profit rises to Rs 888.9 mn on festive demand

Indian logistics services provider Blue Dart Express reported a flat third-quarter profit on Wednesday, snapping four straight quarters of profit fall, driven by festive season-induced demand recovery.
 

Consolidated net profit rose to 888.9 million Indian rupees ($10.70 million) from 886.6 million rupees a year ago in the December quarter, the Deutsche Post DHL Group-controlled company said.

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Logistic companies have been grappling with increased competition, slow demand and volatile air turbine fuel (ATF) rates, which form a major part of their expenses. Freight prices continued to remain low, with demand yet to see a major pickup.
 

 

Blue Dart Express' market share has remained stagnant in the surface express segment, facing competition from other players, Emkay Global analysts noted. Its premium pricing strategy has also led to the company losing market share in the business-to-client express segment, they added.
 

Rival Container Corporation of India reported a 12% profit rise in the December quarter, supported by festive season-induced demand.