Blue Dart Express Ltd. Q1 FY25 Earnings Conference Call Summary
Earnings Performance
• Date of Call: July 23, 2024
• Profit After Tax: INR 515 million
• Revenue: INR 13,427 million
• Revenue Growth: 8.5%
Management Changes
• Retirement: Chairman Sharad Upasani
• New Appointment: Prakash Apte as Non-Executive Chairman
Margin and Profitability Insights
• Projected PBT Margin Expansion: 200 to 400 basis points
• Target Margin: 7% to 8% with steady growth of 10% to 12%
• Concerns Raised: Decline in margins attributed to increased ground service costs and inflation
• Expected Margin Improvement: 2% to 3% in upcoming quarters
Shipment and Operational Dynamics
• Air Shipment Volumes: Lower in June compared to March
• Overall Shipment Weight: Increased from 296,988 tons in March to 313,089 tons in June
• Profitability in Surface Business: Uncertain, varies by operational dynamics
Capital Expenditure and Expansion Plans
• Planned Capital Expenditure: Approximately INR 250 crores for FY25
• Focus: Expansion of hubs for air and surface operations
Revenue and Pricing Strategies
• Revenue Growth: Approximately 9%, with 3.9% from general price increases
• Employee Salary Hikes: About 4% year-on-year impacting margins
• Pricing Strategy: No dilution of yields in Surface Express business despite cost increases
Future Outlook
• Optimism for Demand: Driven by GDP growth and e-commerce expansion
• Fuel Cost Management: Through variable surcharge in customer contracts
• Aircraft Utilization: Currently at 70-75%, below the ideal range of 85-90%

Blue Dart Express Limited Investor Conference Call Summary
• Date of Call: May 3, 2024
• Fiscal Year Performance:
• Discussed corporate performance for the year ending March 31, 2024.
• Management addressed the impact of the General Price Increase (GPI) on margins.
• Year-over-year realizations were flat, but internal analyses showed margin improvements.
• Capacity Utilization:
• Air fleet utilization rate: 75% to 85%.
• Ground services performance noted, with lower yields not adversely affecting overall margins.
• E-commerce Revenue:
• Constitutes about 30% of total revenue.
• Ongoing efforts to optimize two new aircraft in the fleet.
• Transit Times and Capacity:
• Focus on enhancing transit times and capacity, especially in the northeast region (e.g., Guwahati).
• Initial competitive pricing strategy to attract customers, with future price adjustments planned.
• Revenue Mix:
• Surface business accounts for about 30% of revenue.
• Stable mix between surface and air services; growth in document services supports yield levels.
• Competitive Pressures:
• Challenges in implementing price hikes acknowledged, but no significant impacts on Blue Dart reported.
• Profitability Goals:
• Aim to improve PBT margin by 2% to 5% from the current 7.5% to 8%.
• Expectation of better capacity utilization within the next nine months.
• Depreciation:
• Increase in depreciation due to infrastructure improvements.
• Aircraft-related depreciation expected to remain stable.

• Date of Submission: February 2, 2024
• Event: Analyst/Investor Conference Call
• Date of Call: January 30, 2024
• Organizer: Motilal Oswal Financial Services Ltd.
• Purpose: Discuss company performance for the quarter and nine months ending December 31, 2023
• Availability: Transcript available on the company's website
• Signed by: Tushar Gunderia, Head of Legal & Compliance and Company Secretary

Key Highlights from November 2, 2023 Call
• Corporate Performance: Discussion on performance for the quarter and half-year ending September 30, 2023.
• Growth in Express Services: Focus on distinct express services and integration of air and ground logistics.
• Market Share Confidence: Optimism in growth across e-commerce and healthcare logistics.
• Festive Season Indicators: Positive early signs for better performance compared to the previous year.
• Pricing Strategies: Emphasis on maintaining premium pricing while adapting to market conditions.
Margin Trends and Operational Challenges
• Decline in Margins: Acknowledgment of reduced margins due to new aircraft and rising costs.
• Misleading Comparisons: Clarification that pandemic-era margins are not a fair benchmark.
• Current and Target Margins: Current margins at 7% to 7.5%, with a goal of 13% to 14%.
• Cost Increases: Rising operating and employee costs due to merit increases and staffing needs.
Discounts and New Initiatives
• Festive Season Discounts: Targeted at retail customers, not affecting contracted clients.
• Drone Deliveries and Rail Cargo: Ongoing trials and potential expansion as infrastructure improves.
Transition to Premium Cargo Services
• Shift to High Premium Services: Emphasis on e-commerce and D2C segments.
• Inefficiencies of Belly Cargo: Highlighting the need to move away from using passenger flight belly cargo.
• Key Industries for Revenue: Pharmaceuticals and banking identified as significant contributors.
• Revenue from Next-Day Delivery: Approximately 80% of revenue comes from this service.
• Pricing Mechanism: Contracts renegotiated to align with ATF costs, linked to Brent crude pricing.
• Belly Cargo Operations: Notable portion of operations still involves belly cargo transport.