Blue Dart Net Profit up by 100 Million

Blue Dart Express Limited (BDEL), India's largest Domestic Air Express Company, declared its audited financial results for the year ended March 31, 1999 at a board meeting held in the city today.

Blue Dart has firmly established its turnaround to record an operating profit (PBDIT) of Rs. 1912 lacs vis a vis Rs. 626 lacs of the previous year and a PBT of Rs.701 lacs as compared to a loss of Rs.424 lacs of the previous year.

Commenting on Blue Dart's performance for the year, Mr. Clyde Cooper, Managing Director, Blue Dart Express Limited said, "Proactive measures, like the introduction of the aviation system, restructuring of the organisation implemented by the Company in prior years, rationalisation of operating costs, yield management and high quality service to our Customers have resulted in the above strong performance. The key factor of our turnaround is the efforts put in by our People force."

The Company has strengthened its Domestic Leadership. The Company recorded a strong growth of 23% in its Core Domestic products. The International Priority products showed a decline of 20% largely due to the realignment between Blue Dart and FedEx. This segment has now started to grow.

By reducing the fixed cost base, the incremental revenues of the Company has resulted in the Operating margins rising from 5% to 11% in this year.

Blue Dart's Super-Hub project, with the latest technological state - of - the art devices and systems, is nearing final stages of completion and full-fledged commercial activities are expected to commence from the second quarter of 1999-2000. This would result in further increased productivities over the next few years and will increase package handling capacity to support future growth.

Blue Dart is also actively preparing for launch of E-Commerce on the net and is in the process of initiating the requirements for the support of trade and commerce in this direction.

Blue Dart Aviation Limited, a 100% subsidiary of the Company has recorded an operating profit of Rs 591 lacs as compared to Rs 425 lacs of previous year and a PBT of Rs.21 lacs Vs a loss of Rs.161 lacs vis a vis the year 1998-99.

Blue Dart Express Limited is India's leading express company with a 36% domestic market share. Blue Dart today offers a comprehensive range of services and products for both Domestic and International shippers. Blue Dart's continuous commitment towards understanding the needs and concerns of the customer has enabled it to provide unmatched standards of service quality with above 99.90% reliability levels in the express industry. Today, Blue Dart services over 1100 locations in India. Blue Dart is one of the largest Global Service Participants of FedEx, the world's largest express transportation company.

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Dated : Mumbai, May 25, 1999