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,

  1. Clients are choosing ground services over air couriers due to the cost-efficiency.
  2. Air courier business is also facing tough competition from commercial airlines cargo services while ground express service market is intensely fought.
  3. 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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