Bluedart express profitability declined sharply in Q3 as the company reported consolidated net loss of Rs 31.92 crore in Q3 as against net profit of Rs 32.02 crore a year ago. Its net sales increased by 0.02% in net sales to Rs 857.86 crore in Q3 December 2019 over Q3 December 2018.
Bluedart's current business model is facing severe headwinds as,
- Clients are choosing ground services over air couriers due to the cost-efficiency.
- Air courier business is also facing tough competition from commercial airlines cargo services while ground express service market is intensely fought.
- E-commerce players are shifting towards building in-house logistics model.
In order to fight the changing dynamics of the package delivery business, BDE conducted an organization right-sizing exercise in Q3 and also discontinued its e-fulfillment center operations (2 facilities in Gurgaon and Bangalore) incurring one-off expense of Rs. 641mn during the quarter.
Disclaimer: The above report is compiled from information available on public platforms. inChat team advises users to check with certified experts before taking any investment decisions.
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