Blue Dart Express Ltd — Q4 FY26

Blue Dart Express Ltd Q4 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=I_WSIuOrdsM Published: 12 hours ago

0:01 1 second So good afternoon everyone and welcome to the interaction with the senior management of blueard express. Uh so firstly I would like to thank the management for giving us the opportunity 0:09 9 seconds to host the call. So today we have with us Mr. Sagar Patil CFO and Mr. Tushar Gunda head of legal compliance and 0:16 16 seconds company secretary Durat Express. I would now hand over the call to the management for some opening comments and then we can take up the Q&A. Uh thank you and over to you sir. 0:25 25 seconds Yeah uh thank you so much Aluk and good afternoon everybody. A very warm welcome to all of you. As you are aware, the 0:32 32 seconds board of directors of the company at its meeting held on 9th May 2026 approved the financial results of the company for 0:40 40 seconds the quarter and financial year ended 31st March 2026. 0:44 44 seconds The company reported revenue from operations of rups 6,141 cr compared to rups 5,720 0:52 52 seconds crores in two financial years 2425 and profit after tax for the year stood at rupes 240 cr for the quarter ended 31st 1:02 1 minute, 2 seconds month 2026 revenue from operations stood at rs533 cr while profit after tax stood at rs 43 1:11 1 minute, 11 seconds cr in a fiscal year shaped by ch uh challenging customer expectations and changing customer expectations, 1:19 1 minute, 19 seconds continued growth in digital commerce, strong domestic consumption and a dynamic operating environment. Blue Dot 1:26 1 minute, 26 seconds Express delivered yearon-year revenue growth supported by sustained momentum across e-commerce and B2B surface expos 1:34 1 minute, 34 seconds uh surface express solutions. The company continued to strengthen its integrated air and ground network, 1:41 1 minute, 41 seconds enhance operational efficiency and expand solutions aligned to the needs of business across India. The year also saw 1:48 1 minute, 48 seconds a dynamic cost and regulatory environment including the implementation of the wage code and related changes across labor and security frameworks. 1:58 1 minute, 58 seconds Blue Dot remained focused on compliance, employees welfare, productivity enhancement and network efficiency at 2:06 2 minutes, 6 seconds the same time continue continuing to protect service quality and customer sublines. The results have already been 2:13 2 minutes, 13 seconds uploaded on the stock action website and has also been posted on the website of the company. I now hand over the call to 2:21 2 minutes, 21 seconds Mr. Sagar Patil, our CFO for further proceedings. Thank you. 2:27 2 minutes, 27 seconds Thank you Dusha. Good afternoon all. So we have closed this financial year with about 7% uh growth in revenue for the 2:35 2 minutes, 35 seconds year and as well as the similar percentage increase in the EBT before the oneoff that we had of exceptional 2:43 2 minutes, 43 seconds item on account of labor code. uh this as far as the quarter is concerned we have similar growth which is about uh uh 2:52 2 minutes, 52 seconds 7% uh rather uh 8% plus in the revenue while the 2:58 2 minutes, 58 seconds uh the uh the there there is a drop of about 17% in the comparable uh uh EBT 3:08 3 minutes, 8 seconds before exceptional items for the quarter there is no exceptional item for this quarter 3:14 3 minutes, 14 seconds uh so the company has uh continue its uh steady growth trajectory uh uh in the 3:23 3 minutes, 23 seconds times where the product profile uh seasonality uh number of variables that act on uh not only with the customers but also in 3:31 3 minutes, 31 seconds the external factors. Uh so the company continues its profitable journey with of course uh uh mandate to improve the 3:39 3 minutes, 39 seconds profitability of retail. So with that uh I I would request to open the floor for questions. Thanks. 3:48 3 minutes, 48 seconds Sure. Uh thank you so much for uh the opening comments. Uh so we'll start with the Q&A. So anyone who has uh any 3:55 3 minutes, 55 seconds question can uh please raise your hand or post it in the chat box below. Uh so we'll get started. So first question we'll take from Mr. Kupas Shankar. 4:05 4 minutes, 5 seconds Please go ahead. Hello Kupa. 4:09 4 minutes, 9 seconds Hello sir. Uh good evening. Yeah, good afternoon. 4:13 4 minutes, 13 seconds Good afternoon sir. Uh thank you for the opportunity. Uh so sir first bookkeeping questions as of what would have been the tonnage for the quarter and for the full year sir if you can share that first. 4:25 4 minutes, 25 seconds So uh tonnage for the quarter is uh uh 3599139,913 4:35 4 minutes, 35 seconds tons for the got it. So for the year I think it sums up to close to about uh uh 14 lakh 38 4:44 4 minutes, 44 seconds 39,000 roundabout right yes okay so so roughly about 7% growth in the overall tonnage which you mentioned 4:52 4 minutes, 52 seconds just wanted to get a sense sir so now this quarter sorry also on the parcels total parcels for the um in millions 5:00 5 minutes for the quarter were 96.17 million okay and for the year 403 3.98. 5:10 5 minutes, 10 seconds Got it sir. So yeah just to extend maybe because you gave insight about the weight shipment growth for the year is about 7% 7.1%. 5:22 5 minutes, 22 seconds For the quarter it is 4.6%. 5:25 5 minutes, 25 seconds Got it. Uh so sir just getting a sense you know this quarter around uh you did 5:32 5 minutes, 32 seconds see uh a good growth coming in in e-commerce piece across the industry um 5:40 5 minutes, 40 seconds for us how did you see the e-commerce piece evolving B2C part of it and uh overall 5:47 5 minutes, 47 seconds also in ground express what would have been the growth generally yes so e-commerce especially e-commerce 5:54 5 minutes, 54 seconds on ground continues to be growth driver including the surface uh on ground as 6:01 6 minutes, 1 second such. Yeah. While the e-commerce on air has been uh steady uh not very much too much growth over 6:08 6 minutes, 8 seconds there. Uh but yeah e-commerce and ground uh remain the drivers for growth. 6:15 6 minutes, 15 seconds So what I wanted to know was more on growth rates in the in the respective segments because you know overall the the the growth rate has been about 8%. 6:24 6 minutes, 24 seconds for the quarter. So and and we did see that you had taken certain hikes from January onwards but but volume-wise 6:33 6 minutes, 33 seconds again tonnage wise it's it's been fairly similar to your overall revenue growth as well. Just wanted to get a sense 6:40 6 minutes, 40 seconds around if I were to further break it down is it because uh the ground and uh you know ground e-commerce proportion 6:49 6 minutes, 49 seconds has gone up which is why our realization are looking flattish uh in terms of yield per kilo yes when 6:58 6 minutes, 58 seconds it comes to ground while the margins may be comparable but when it comes to per kilo or per shipment realization ground is lower than the uh than the Yeah. 7:12 7 minutes, 12 seconds Yeah. So, but we were able to pass uh or rather implement to a certain degree the price hikes which were taken from 7:19 7 minutes, 19 seconds January onwards. Is is my understanding corrected to and to what extent what uh has this result showcased uh the extent 7:27 7 minutes, 27 seconds of increase in realization because of the hikes which you have announced earlier? 7:33 7 minutes, 33 seconds Yes. So we did the GPI uh from 1st of January and uh it has been little better than what we had last year as so it has 7:41 7 minutes, 41 seconds provided a positive impact uh uh helping us to mitigate the impact of the yearon-year depreciation levels as such 7:50 7 minutes, 50 seconds any percentage you want to share sir very difficult to quote a specific percentage because it would uh the products as well as the underlying 7:59 7 minutes, 59 seconds business channels would not be comparable as such so uh No, I'm I I was looking at it from a blended basis uh 8:06 8 minutes, 6 seconds while I understand what I'll try to explain more on why I'm asking this specific thing sir because we understand 8:13 8 minutes, 13 seconds that the underlying mix is the key reason why the realization is optically looking flatterish um uh so so just 8:22 8 minutes, 22 seconds wanted to see uh you know if if there is an absolute pass through of close to about 3 to 4% uh that would have been absorbed because of the mix change is is 8:31 8 minutes, 31 seconds uh so if if you can share where the mix of B2C versus B2B or ground and air that 8:39 8 minutes, 39 seconds will be really helpful in assessing how what sort of a implementation has come through. 8:44 8 minutes, 44 seconds Yes, it would be better than 3 to 4%. is what I can say. Again across the product it will be different. Again the price 8:52 8 minutes, 52 seconds increases while largely we announce uh in the beginning of the year certain customers would typically take some 9:00 9 minutes time. Uh so in the first uh half of the year month on month in the number only improves uh especially some key 9:08 9 minutes, 8 seconds customers would take a month or two more to again renegotiate or negotiate. uh uh so that uh the ultimate realization of 9:17 9 minutes, 17 seconds profit will be more than 4%. uh the price increase uh but again it will depend on product to product uh 9:25 9 minutes, 25 seconds okay and and is it is it fair to assume sir uh last question from my side is this is fair to assume that uh uh the 9:33 9 minutes, 33 seconds margin sequential decline in margin um especially on aida side of things uh is primarily because of this mix and would 9:43 9 minutes, 43 seconds it be possible to give what would be uh the growth in air in this quarter and this financial year and growth in ground 9:50 9 minutes, 50 seconds this year and this this quarter and this financial year. 9:55 9 minutes, 55 seconds Um so from a from the product mix perspective typically as you have seen the shipments have grown slower. So that 10:03 10 minutes, 3 seconds means our smaller products uh have grown uh slower as compared to the heavier 10:10 10 minutes, 10 seconds products. So our smaller products will range from documents to air uh e-commerce as well as surface 10:18 10 minutes, 18 seconds e-commerce. Uh so as I mentioned in one of the earlier calls uh the heavier the 10:26 10 minutes, 26 seconds shipment it becomes more in the nature of freight as such. So that's where the margin realization can be lower whereas smaller the portion the realization of 10:34 10 minutes, 34 seconds service the time uh definite or the time criticality improves. So that is where the service element being better the price real not price but the margin 10:43 10 minutes, 43 seconds realization becomes better as so ground continues to grow faster more than 10% 10:52 10 minutes, 52 seconds just there is an internal announcement happening I'll just put on a mute for 11:16 11 minutes, 16 seconds Yeah, we'll take next question from Achel. Yeah, just just one moment. 11:58 11 minutes, 58 seconds Yeah, sorry for that. There was some internal announcement happening. 12:02 12 minutes, 2 seconds Uh no problem. Uh we can take next question from Achel. Please go ahead. 12:07 12 minutes, 7 seconds Yeah. Uh good evening sir. Uh thank you for the opportunity. 12:10 12 minutes, 10 seconds Uh sir, if you could um uh sorry I missed the initial part. Uh if you could just remind us in terms of the uh air 12:17 12 minutes, 17 seconds versus ground what has been the mix air versus surface for the mix has been between air and 12:27 12 minutes, 27 seconds ground 60 40 60% is air and 40% ground sir fi 26 yes yes 12:34 12 minutes, 34 seconds and this is in value or volume tub sir value revenue and how would that be in terms of volume 12:41 12 minutes, 41 seconds stationaries Volume will be books. One question. 13:30 13 minutes, 30 seconds Yeah. 13:32 13 minutes, 32 seconds No. So we don't provide the breakup for the of shipments or payload between air and ground being sensitive information. 13:40 13 minutes, 40 seconds But typically in air the number of shipments will be higher whereas in ground or the share of the shipments whereas in ground being a heavier loads 13:48 13 minutes, 48 seconds the number of pillows will be higher the weights will be higher. 13:53 13 minutes, 53 seconds Understood. And typically what is the price difference between ground for the like to like distance? Uh the air would 14:01 14 minutes, 1 second be 3x the price of ground. Would that be a fair assumption? Again the price will be a function of whether you're sending 14:08 14 minutes, 8 seconds half kilo or say 30 kilo shipping on a per kg basis. I mean I'm saying for the same product in terms of the per kg I would say 14:16 14 minutes, 16 seconds costing uh from a middle mile point of view uh the the ratio can be 1 is to 5 14:22 14 minutes, 22 seconds 1 is to5 okay understood sir. Uh sir if you could help us in terms of B2B and B2C for FI26 uh 14:32 14 minutes, 32 seconds what has been the topics for us from a revenue point of view 7030 70.3 in B2B 14:39 14 minutes, 39 seconds and 29.7 so since both the uh lines are growing one in surface other one in the 14:46 14 minutes, 46 seconds surface B2C uh this ratio has been uh pretty plus or minus 2 or 3% quarter and quarter so this uh 70 uh uh 30 is for FI. 14:58 14 minutes, 58 seconds Yes. 14:58 14 minutes, 58 seconds 26 or fourth quarter you saying for the fourth year. 15:01 15 minutes, 1 second Fourth quarter is this 71 to 29. So it is stable from really important. 15:07 15 minutes, 7 seconds Understood. And just a clarification in terms of the um for 15:14 15 minutes, 14 seconds um uh you know in terms of the market share if you could call out what would be our market share uh in the 15:22 15 minutes, 22 seconds respective segment for uh air and the surface just a ballpark number uh we'll not have updated numbers 15:29 15 minutes, 29 seconds typically market share uh comes with a certain lag and again it's a perceptive number so uh uh I I I don't have readily or received number for quoting as such. 15:40 15 minutes, 40 seconds But what would be the last number you'd recall like uh for 25 or docu for documents? Uh we have seen the 15:49 15 minutes, 49 seconds uh market share being 70% plus again this is about the uh organized and express service providers not entire 15:57 15 minutes, 57 seconds industry that may have different types of layers. Again when we talk about air and these are the 16:06 16 minutes, 6 seconds products that we have defined by transit time and not necessarily mode of transport. uh uh it's more of the so 16:14 16 minutes, 14 seconds even if there is something going from say Mumbai to Pune if it is air product it will have a separate faster smaller vehicle that will move on priority 16:23 16 minutes, 23 seconds whereas if it is a ground product there will be difference of few hours if not a day even between that kind of lane but for us it's a air network not going by 16:32 16 minutes, 32 seconds on air essentially this air by air we mean a door to door multimodal kind of transport where first mile last mile 16:39 16 minutes, 39 seconds will be road big or small and middle mind in many cases will be air. So that's very loosely we call it as air for discussion but we do not really 16:48 16 minutes, 48 seconds treat it as a segmented part of the businesses. 16:52 16 minutes, 52 seconds Fair point. Uh just to clarify B2C 29.7% for FI26 16:59 16 minutes, 59 seconds does this include the ecom uh the bulk of the ecom business here? Yes it is largely ecom business. Yeah. 17:07 17 minutes, 7 seconds So B2C is largely ecom. Yes, it's only rather it is only ecom. Okay. 17:15 17 minutes, 15 seconds Understood. Understood. And sir, uh just a uh question on ecom business. 17:21 17 minutes, 21 seconds Uh you know, historically we've been like what is the mix for ecom business for FI26? Sorry, I forgot to ask that first. FI26 ecom revenue mix. 17:32 17 minutes, 32 seconds So uh between air and surface, it could be like uh 17 to 12. 17 is to 12 out of this 29.7%. 17:44 17 minutes, 44 seconds Okay. So when you say B2C is actually ecom business. Yes. Yes. Okay. 17:52 17 minutes, 52 seconds Understood. 17:53 17 minutes, 53 seconds Um and in terms of the uh you know the freighter utilization if you could guide sir. 18:03 18 minutes, 3 seconds So it continues to be at around 85% on a pallet utilization level. 18:08 18 minutes, 8 seconds uh we we use a good amount of commercial air capacity as well and we tend to fly 18:16 18 minutes, 16 seconds the flights only when we have good load which is there in most of the week days. 18:22 18 minutes, 22 seconds Uh yeah so it it remains at 85% 85% why because there are also positioning 18:29 18 minutes, 29 seconds flights uh so that takes it down but for the main sectors it would be well above 90% 95% Understood. 18:40 18 minutes, 40 seconds Understood. And uh in terms of the uh margins, how do we see margins? I mean, you know, we have swung between 13 1.5 18:50 18 minutes, 50 seconds to 17 1.5% in last four quarters. So how do we look at this margin? Is from an annual perspective 15 15 and a half what 18:59 18 minutes, 59 seconds we have delivered in last two years is uh is is the number we can we can pencil in or you think it can or what are the margin drivers from here on? 19:10 19 minutes, 10 seconds So you're talking about standalone margins right? Consolidated margin sir consolidated consolidated margin because margin goes 19:17 19 minutes, 17 seconds below that before depreciation. So far as depreciation is a major part of uh having a big setup of air as well as on 19:25 19 minutes, 25 seconds the ground that we have uh yes uh the quarter on quarter comes with variations 19:33 19 minutes, 33 seconds uh with peak season uh kicking in uh typically in second half of the year. Uh 19:40 19 minutes, 40 seconds so we we we we we our focus is normally to ensure a yearon-year yearly margin. 19:45 19 minutes, 45 seconds Uh so while we try to operate at a efficiency when the loads are low, the focus is on also building up capacity in 19:54 19 minutes, 54 seconds case of uh the peak loads. Uh wherein the additional volumes also does pay for that cost increase during that temporary 20:02 20 minutes, 2 seconds period that we uh look at. And then after that peak is over then also the focus is on again optimizing uh because 20:10 20 minutes, 10 seconds revenues the loads also do not immediately come down in some pockets with some customers there are again 20:17 20 minutes, 17 seconds volume of surges that come in the month of December January. So uh the the the the the function I mean the business is 20:25 20 minutes, 25 seconds functioning function of balancing air and ground B2C and B2B as well as the big packages and small packages or 20:33 20 minutes, 33 seconds documents you cross utilizing the the the capacities efficiently and keep on flexing that capacity. So the focus is 20:41 20 minutes, 41 seconds largely on a yearly number on quarter on quarter. There can be ups and downs depending on how we build up the resources and how the volume for 20:49 20 minutes, 49 seconds different products uh or or even different customers come in because different customers will have different uh margin levels depending on their 20:56 20 minutes, 56 seconds product mix or the lay mix also for that matter. Got it. 21:02 21 minutes, 2 seconds Yeah. Uh so there are some more questions. Uh so sir uh one question which is which has come in the chat was 21:11 21 minutes, 11 seconds on ATF pricing. If you can just highlight what's the impact of ATF movement and whether we have passed it on uh just just some color on that. 21:22 21 minutes, 22 seconds Yes. So while ATF prices started going up in the month of March uh uh till end of March because we have fuel search 21:31 21 minutes, 31 seconds charge that is announced at the beginning of the month. Our March f search didn't go up significantly. Our purchase prices are also typically 21:40 21 minutes, 40 seconds agreed in the beginning of the month. So for the quarter we didn't have any significant impact from pure ATF and brand point of view while there were 21:48 21 minutes, 48 seconds some cost impact in terms of the availability of local fleet or at times manpower also in that month. Uh so the 21:56 21 minutes, 56 seconds impact in the financials will come uh starting from April. As you know we have fuel search charge mechanism where any 22:03 22 minutes, 3 seconds increase or drop in rent is largely compensated or neutralized uh with the uh between ATF and fuel search charge. 22:11 22 minutes, 11 seconds So far as ATF is moving in tandem with print uh and of course with the currency fluctuation also we have search charge 22:20 22 minutes, 20 seconds for both fuel as well as currency in our commercials. So to an extent those those 22:27 22 minutes, 27 seconds that volatility uh is neutralized uh largely. 22:33 22 minutes, 33 seconds Okay. So you basically are not looking at any impact coming in because of the ATF price movement in the first quarter. No. 22:42 22 minutes, 42 seconds Got it. 22:42 22 minutes, 42 seconds You going to say first quarter of calendar year in the first uh no financial year April to June. 22:47 22 minutes, 47 seconds Yeah. Financial year there will be impact but from profitability point of view it is largely neutralized. 22:55 22 minutes, 55 seconds Got it. Got it. And also one question was on the volume growth. So now what kind of volume growth we are looking uh 23:03 23 minutes, 3 seconds in this financial year uh FI27 considering the growth which we have done in 26 and considering looking at 23:12 23 minutes, 12 seconds the market scenario uh if you can just indicate what sort of growth we could look at in the air side as well as on the ground side. 23:21 23 minutes, 21 seconds uh and without really giving a color of forward-looking statement but this is a business uh which is largely uh a 23:29 23 minutes, 29 seconds network business distributed all AC all across uh India. So any significant 23:35 23 minutes, 35 seconds uparch or even shortfall in margin can uh impact either service quality or the profitability. Either way if there is 23:44 23 minutes, 44 seconds big increase in volume it might be seen as profitable but then service quality impact uh also can be there. So we 23:51 23 minutes, 51 seconds mainly look at optimizing the capacities with respect to the uh the the demand that comes from the customers and then 24:00 24 minutes we tend to be bal to balance between what volumes we can ask from the customers versus what price we can get 24:06 24 minutes, 6 seconds at. So the the approach is to more uh balance uh to ensure the profitability in absolute terms. 24:17 24 minutes, 17 seconds Got it. Uh just one follow up on that actually. Uh so ground you mentioned it's around 40% now which used to be around say 30 32%. 24:28 24 minutes, 28 seconds Uh few quarters back. So now now with the ground share increasing and the target would be more like say 48 24:37 24 minutes, 37 seconds 50%. Right? So do we see the growth actually coming in much better now because ground share will be much higher which is the fast growing segment. 24:48 24 minutes, 48 seconds Yes. Uh I mean ground is the growth engine for us and the share of ground has been going up. Uh however with 24:58 24 minutes, 58 seconds ground largely the costs are also variable. I mean uh uh all the middle mile the the line alls are uh variable 25:07 25 minutes, 7 seconds even the first mile last mile also largely variable. Uh we we work with a very large uh range of vendors all 25:16 25 minutes, 16 seconds across there. So they unlike air where once you have investment in place in assets uh the incremental rate of return 25:25 25 minutes, 25 seconds is better uh that is not the case with ground. So uh yes while ground 25:32 25 minutes, 32 seconds is remains the growth engine it may not result in a volume increase there may not result in a very dramatic increase in the profitability. 25:43 25 minutes, 43 seconds Got it. We'll take followup from Kashangar. Please go ahead. 25:50 25 minutes, 50 seconds So sir, just uh you know questioning back on what you just commented uh uh you've added couple of infrastructure 25:57 25 minutes, 57 seconds with respect to new hubs on the ground side of things and and you know given the recency of the addition um there 26:06 26 minutes, 6 seconds would have been certain overhead expenses on the ground side of things. 26:09 26 minutes, 9 seconds Now if you're expecting ramp up the margin profile should improve with in tandem with the utilization of those 26:17 26 minutes, 17 seconds hubs. Uh so why why are you saying that the mar profitability improvement may not be to the higher extent? 26:25 26 minutes, 25 seconds So the so the capacities that we added and there is a big facility we have started last year 26:33 26 minutes, 33 seconds in uh in Gura near Delhi. uh now to an extent this is yes this this will take 26:40 26 minutes, 40 seconds care of uh uh next maybe up to 9 years of growth in that lane but it is still 26:47 26 minutes, 47 seconds one of the l one of the cities secondly this facility was a combination of not only growth but also consolidation of number of facilities so it's not that it 26:56 26 minutes, 56 seconds it's a one big uh uh investment from overall from company point of view within the overall business this is 27:04 27 minutes, 4 seconds still a a small spot of growth in that particular region uh comes with consolidation. Um so yes there will be 27:13 27 minutes, 13 seconds capacity available that will get utilized over the next few years and uh incidentally there also we have a phase wise approach where the entire 27:20 27 minutes, 20 seconds commitment has not been done in in one go there will be phase commitment in uh two phases. So it's not one big 27:27 27 minutes, 27 seconds investment put in over there even also as far as ground is concerned our facilities are express facilities not 27:35 27 minutes, 35 seconds warehousing kind of facilities. So the turnover of volumes there is quite significant. Uh so it's not a very big 27:43 27 minutes, 43 seconds fixed uh cost that has been added that will pay off in a long term in the overall uh number of kilos tons that we 27:52 27 minutes, 52 seconds handle this will not be even five or 10% of the all country volumes even for that one big investment that we have put in place as such. So no I mean of course it 28:01 28 minutes, 1 second will have a positive impact uh but not as significant that it can make a big uh 28:09 28 minutes, 9 seconds change in the overall company profitability. 28:12 28 minutes, 12 seconds Got it. Got it. Uh second question was on uh the uh current ongoing uh 28:20 28 minutes, 20 seconds challenges on the west Asia crisis. Uh sir we do understand that postcoid you 28:26 28 minutes, 26 seconds had uh carried out few charters uh to specific destinations uh primarily because of the need which has arised and 28:34 28 minutes, 34 seconds given the uh discrepancy which has come in on shipping side of things. Are you seeing charter options opening up and 28:42 28 minutes, 42 seconds would you be taking it up or would you would it be in the perview of DHL? 28:49 28 minutes, 49 seconds No. So we I it's it's up to us as Rudat and if there are such opportunities so 28:57 28 minutes, 57 seconds far we don't see a big increase there the domestic chartersh keep on uh happening with few customers continue 29:04 29 minutes, 4 seconds recur I mean repeating and sometimes one time charter uh so we may not see that 29:12 29 minutes, 12 seconds as of now at least we don't have that big indic indication of uh uh new opportunities coming for charters because the passenger airlines also are I mean it's it's moving internationally. 29:24 29 minutes, 24 seconds Uh so so while it was a good uh uh good I would say enabler or help uh in the 29:33 29 minutes, 33 seconds covid periods as of now we don't see any indication while of course we keep on exploring those cases. 29:40 29 minutes, 40 seconds Got it sir. Got it. That's it from my side. Thank you for answering the questions. Thank you. We'll take next question from Shivom. 29:50 29 minutes, 50 seconds Yeah. Hi. 29:52 29 minutes, 52 seconds Thank you sir giving for the opportunity. So I just wanted to know what has impacted the Aida margin this quarter. Is is the volume change mix 30:01 30 minutes, 1 second have impacted the AIDA margin or something else? Yeah. 30:06 30 minutes, 6 seconds As you said uh yeah. So one would be that as you said that because of the heavier volume. 30:15 30 minutes, 15 seconds Yes. Sorry you continue please. 30:18 30 minutes, 18 seconds One reason would be uh that and also there would be uh I mean there is nothing as one single item that is 30:26 30 minutes, 26 seconds significant. We did face I would say some increase in the costs of local vehicle hiring especially in the month 30:32 30 minutes, 32 seconds of uh uh March uh where fuel related apprehensions were coming in some parts of the city. So we had to really also 30:41 30 minutes, 41 seconds hire from market. So to some extent there was increase in cost there. We also have invested in uh uh some of our 30:50 30 minutes, 50 seconds functions front end functions like sales and some quality related functions. So uh sometime during the last year. So as 30:57 30 minutes, 57 seconds compared to last year same quarter it would look like a higher employee cost uh impact as well. Um so 31:06 31 minutes, 6 seconds you know 2 crores here 3 crores here all combined uh put together are totaling up to about 10 15 crores of rupees but there is no uh exceptional or 31:15 31 minutes, 15 seconds extraordinary that is impacted it's more of a timing that has come in this quarter as compared to the pre earlier quarter but yes uh you can also be said 31:25 31 minutes, 25 seconds right where the smaller uh growth in the shipments versus weight will impact uh to an extent the realized profitability 31:33 31 minutes, 33 seconds for Okay. Got it sir. Thank you. 31:42 31 minutes, 42 seconds So we'll take one question from the chat box. Uh so uh is the higher freight cost 31:49 31 minutes, 49 seconds also leading to customers uh choosing non-express shipments versus our offerings. So any any color on that sir? 31:59 31 minutes, 59 seconds Uh it can sometimes happen uh like for ecom we provide services for both 32:05 32 minutes, 5 seconds options for both by air as well as by ground. So sometimes the customers can same customer who is giving us both on 32:14 32 minutes, 14 seconds air as well as uh ground can also at times reallocate based on their uh 32:21 32 minutes, 21 seconds priorities or the the nature of shipment how discretionary or uh critical it is from from that time point of view. uh 32:31 32 minutes, 31 seconds and again as the ground becomes more and more efficient the difference between air and ground can be not more than say 24 or at most 48 hours depending on the 32:39 32 minutes, 39 seconds lane. So as the customers become better enabled uh to uh to to plan for to 32:48 32 minutes, 48 seconds manage their uh flow I mean flow of the shipments across the country. They will they are they are also able to flex to 32:56 32 minutes, 56 seconds choose between budart ground or budart uh air for that matter. So yes, that can also have an impact there. 33:04 33 minutes, 4 seconds Got it. Uh we'll take one question from the the queue uh from Anul. Please go ahead. 33:12 33 minutes, 12 seconds Yes. 33:18 33 minutes, 18 seconds Hi, thank you for the opportunity. Just a bookkeeping question. 33:21 33 minutes, 21 seconds Our capex has brought up in FI26. I believe this is on the back of the ground hubs that we sort of uh added to 33:30 33 minutes, 30 seconds our network. Are there any similar plans to add or do some heavy capex uh in the coming year? 33:38 33 minutes, 38 seconds So if you look at the console numbers our capex for the year is almost 360 crores whereas standalone it is 120 33:47 33 minutes, 47 seconds crores. in console uh out of 360 crores 200 crores is mainly coming from 33:54 33 minutes, 54 seconds aircraft uh which is in the nature of uh engine or aircraft maintenance. These 34:00 34 minutes are the uh servicing or check C check D check B check that we do which can uh 34:07 34 minutes, 7 seconds add to the efficiency or usability or cycles of aircraft beyond a year. So it is booked as capex and then it is 34:15 34 minutes, 15 seconds depreciated over a period of utilization. So barring that 120 crores uh yes there will be element of uh the 34:23 34 minutes, 23 seconds ground uh facility uh but again it will not be that very significant not more than 30% of this total capex that we're 34:31 34 minutes, 31 seconds talking about not even as much and in terms of the 34:36 34 minutes, 36 seconds uh fresh yes we do have uh uh uh plans to 34:44 34 minutes, 44 seconds uh strengthen the capacities in different uh parts of of the country be it Mumbai or south to an extent is east 34:52 34 minutes, 52 seconds we did in last few years north also we have added in last couple of years so for us I mean this capex is also more is 35:00 35 minutes like a part of opex uh so if you find the year on year the the capex amount will be similar to the depreciation 35:07 35 minutes, 7 seconds amount that we have if you exclude the roou asset part of it as such but capex can come as a big spot in the 35:15 35 minutes, 15 seconds capex I mean as far as aircraft is concerned but it is not aircraft it can be engine or some major components as a part of the uh regular maintenance of the aircraft. 35:26 35 minutes, 26 seconds Got it sir. So just to follow up on that so this 200 crores of aircraft maintenance servicing engine this would 35:34 35 minutes, 34 seconds be recurring in nature. Uh is that assumption correct? Would this repeat in say one or two years again? 35:41 35 minutes, 41 seconds Yes. Yes. So it it can be 100 cr in one year or maybe another 200 crores in another year. So typically 100 to 150 35:48 35 minutes, 48 seconds crores uh every year uh even in a without any new capacity addition in aircraft this will be a uh this will be a part of cap capital expenditure. 36:01 36 minutes, 1 second Correct. And since ground continues to grow faster than air a similar number in ground capex can be assumed the one that we have done in the current year. Yes. 36:11 36 minutes, 11 seconds So in in in standalone entity the capex of 120 crores as normal capex and ROU 36:18 36 minutes, 18 seconds asset of 400 crores this type of so largely when you add the ground facilities major addition is in in terms 36:25 36 minutes, 25 seconds of uh the lease assets. So ROU will find more and normal capex will be a relatively smaller number and even this number of 120 crores can be as good as 36:34 36 minutes, 34 seconds annual capex or opex capex that will keep on coming. 36:40 36 minutes, 40 seconds for it sir any comment on uh we've given a guidance of maintaining the pb PBT 36:47 36 minutes, 47 seconds margins of around seven between seven and 8% uh and I think we are we lagging that guidance uh by some distance any 36:56 36 minutes, 56 seconds any color on or or any guidance on when we should think about reaching this as soon as possible that's what we'll 37:04 37 minutes, 4 seconds try but otherwise any specific guidance will be like forward looking but yes the effort is always to maximize in the peak 37:12 37 minutes, 12 seconds and optimize in the other quarters in order to ensure a bit uh as better number as possible for the year. 37:23 37 minutes, 23 seconds Thank you. That's it from man. All the very best for the next year. Thanks. Uh we'll take next question from Ankita. 37:32 37 minutes, 32 seconds Hold on. Yeah. Yeah. 37:35 37 minutes, 35 seconds Thank you. Uh thank you for taking the question, sir. Uh I have missed have you shared the um shipment and tonnage data uh uh number for the fourth quarter? 37:46 37 minutes, 46 seconds Uh yes you can note down quickly shipments 96.17 million and tes 359913 37:55 37 minutes, 55 seconds tons 359913. Yes 360,000. Yeah. 38:00 38 minutes Okay. Okay. Got it. Uh secondly uh sir how has been the volume growth in air 38:06 38 minutes, 6 seconds and surface for the full year fi uh fi26 here uh the ship the weights have gone 38:16 38 minutes, 16 seconds up by about 8.8% and in ground 6.9%. 6.9%. 38:24 38 minutes, 24 seconds Yeah. Again these are not necessarily air as a mode. Air is more of a multiod. 38:29 38 minutes, 29 seconds So some of it can also go on road, some of it will go on commercial airline and also some of it will go on TZ. So air 38:36 38 minutes, 36 seconds and ground is what we loosely use internally for our uh calling our product which are transit time based but these do not necessarily been the 38:45 38 minutes, 45 seconds segmented or uh the main mode of uh transportation there. 38:50 38 minutes, 50 seconds Got it sir. uh has the uh surface volume uh growth slowed down from what we have 38:59 38 minutes, 59 seconds seen in FI25 earlier has this growth rate come off for us 39:06 39 minutes, 6 seconds 7% growth that you're seeing on surface is this slower than what we have witnessed in 25 39:17 39 minutes, 17 seconds I think would be slower because we have uh the customer composition has gone undergone some change. The shipment per 39:25 39 minutes, 25 seconds uh kg for ground surface has uh I think has come down as compared to earlier the growth. 39:34 39 minutes, 34 seconds Okay. So uh means uh we are handling more lower weight cargo which means we would that is also one of the reason why 39:43 39 minutes, 43 seconds our B2C shipments have gone up means we are handling more lower weight maybe 39:49 39 minutes, 49 seconds e-commerce shipment on surface uh which is the reason why overall growth would have been slow 39:57 39 minutes, 57 seconds so the B2B movement of e-commerce I mean not ecom as a uh last mile delivery for 40:03 40 minutes, 3 seconds the individual shipment buyers from the uh got it. Yeah. 40:08 40 minutes, 8 seconds But more of a stores to store or warehouse to store warehouse to out kind of movement. 40:13 40 minutes, 13 seconds Uh that would have gone up for at a smaller uh uh weight break level. Weight break event. Correct. Got it. 40:23 40 minutes, 23 seconds Okay. And you see this trend to continue or to reverse? 40:29 40 minutes, 29 seconds Uh current same. I mean on ground typically unlike air when you move smaller 40:36 40 minutes, 36 seconds shipments the cost of handling also becomes higher. So unless there is a better RPK uh we we may or may not be 40:43 40 minutes, 43 seconds very keen on unless we get a better realization over there. So we'll be looking very critically on this part uh 40:53 40 minutes, 53 seconds for the individual customers or at the trade line level. So and we we I mean we we keep on optimizing continuously looking at the customers profitability 41:02 41 minutes, 2 seconds as well as their lay on uh profitability. So if there is a need to optimize the 41:11 41 minutes, 11 seconds I mean there is no definite plan in terms of managing the KPS but it's more dependent on the profitability the trade 41:18 41 minutes, 18 seconds is involved as such. So this can't be necessarily said to be a trend. 41:24 41 minutes, 24 seconds The effort will also be to build up more kilos because that improves the efficiency the handling cost per shipment typically will be or per kilo 41:32 41 minutes, 32 seconds will be lower as compared to the shipment. 41:35 41 minutes, 35 seconds Got it. Uh in terms of profitability given that uh uh x of your network increased cost 41:44 41 minutes, 44 seconds has your segmental profitability uh in both air and surface has been maintained or has it gone down. 41:57 41 minutes, 57 seconds So we we don't do segmented uh results but yeah internally when we have our own subjective way of or internal rules for 42:05 42 minutes, 5 seconds allocations uh the the the profitability typically 42:11 42 minutes, 11 seconds uh will will change across those individual products also significantly given the seasonalities that we have 42:20 42 minutes, 20 seconds some of the network uh or most part of the network both first mile as well as middle mile first First mile, last mile 42:27 42 minutes, 27 seconds and middle mile are shared depending on whether sub middle gets shared depending on whether it is air or ground. First mile, last mile gets shared depending on 42:36 42 minutes, 36 seconds whether it is a heavy parcel or a uh lighter parcel or document. So depending 42:43 42 minutes, 43 seconds on the flavor of even month for that matter, the margins can go significantly up and down. As far as uh fullear 42:51 42 minutes, 51 seconds averaged out number is concerned, we see the profitability is more or less in tandem with each other uh uh and moving 42:59 42 minutes, 59 seconds in tandem with the overall profitability. No no different variation uh across either the the segment type or the product type. 43:10 43 minutes, 10 seconds Okay, got it. Sir, last two questions. 43:13 43 minutes, 13 seconds uh on B2C uh segment how much percentage of our volumes comes from large platforms and 43:21 43 minutes, 21 seconds how much would be coming from individual D2C customers and second is how much percentage of our air cargo uh is moved 43:31 43 minutes, 31 seconds on our own freighters uh versus uh other commercial aine belly space 43:38 43 minutes, 38 seconds very small percentage from large part platform largely customer base is consisting of either D2C or sometimes 43:47 43 minutes, 47 seconds aggregators. Uh again at an individual level customers, single customer would not have very significant share of 43:56 43 minutes, 56 seconds business. Uh customers are also do use very I would say it matters in terms of ensuring the service quality there. 44:05 44 minutes, 5 seconds Uh what was the second question? 44:08 44 minutes, 8 seconds uh how much percentage of air cargo is moved on our own freighters versus other commercial airline belly space? 44:15 44 minutes, 15 seconds Yeah, almost one/ird of the uh air load would go on commercial. Uh 44:23 44 minutes, 23 seconds again it's a mix of both the lanes where we operate our own aircraft but at the same time there are 25 or additional 44:32 44 minutes, 32 seconds airports where we don't fly but we carry on the commercial airlines. So overall about 2/3 of the volumes are managed by 44:40 44 minutes, 40 seconds on our own airlines aircraft uh and one/ird is uh with the commercial airlines commercial air plus I would say 44:48 44 minutes, 48 seconds road but yeah commercial is the major part of it. 44:53 44 minutes, 53 seconds Got it. Thank you sir. Thank you and all the best. Thank you. 44:58 44 minutes, 58 seconds Thanks sir. We'll take uh this last question from Koshi. Please go ahead. 45:06 45 minutes, 6 seconds Hello, thank you for the opportunity. 45:08 45 minutes, 8 seconds Just wanted to get some clarity on the capeex. You mentioned that around 150 cr 100 to 150 cr is the aircraft kind of 45:16 45 minutes, 16 seconds the maintenance or the engine uh capeex that you have to keep doing on a recurring basis and on the ground somewhere around 120 cr which is the 45:25 45 minutes, 25 seconds current year figure would be a year-on-year basis. Is that correct? 45:30 45 minutes, 30 seconds Yes. Yes. So 120 that I mentioned is standalone. So this will include both our IT capex as well as the others. I mean when the accounts come in you'll 45:38 45 minutes, 38 seconds get the more complete breakup. But yes 150 crores is you can say average out number for the current fleet which is more like annual capex. 45:48 45 minutes, 48 seconds Okay. Any other specific capeex plans that are being planned for FY27? Um any specific segment that we're targeting for additional capex? 45:59 45 minutes, 59 seconds No, not as a segment or a new line of business as of now. But then it this is largely in automations. So putting up 46:09 46 minutes, 9 seconds sortters or uh MH material handing equipments and also IT 46:15 46 minutes, 15 seconds related spend both on the uh largely on of course uh the the hardware and some part of on building the applications 46:23 46 minutes, 23 seconds etc. So no no expansion related capex but these are more in the nature of renewal replacement and to some extent 46:32 46 minutes, 32 seconds expansion with in line with the organic growth in business. Okay thank you so much. 46:39 46 minutes, 39 seconds Thank you. Yeah. 46:43 46 minutes, 43 seconds Uh yeah uh yeah look yeah yeah. So yeah so those were the uh key questions. Uh so I would just hand over 46:51 46 minutes, 51 seconds the call back to you for any closing comments and then we can close the call. 46:56 46 minutes, 56 seconds Uh nothing specific but uh thank you so much. I hope we have been able to uh you know answer whatever the questions 47:04 47 minutes, 4 seconds investors had and our endeavor would be always to have this periodic conversation with the investors to have more disclosures. 47:13 47 minutes, 13 seconds Thank you. Thank you so much. Thank you. Thank you. Thank you for signing up. Thank you all. 47:20 47 minutes, 20 seconds Thank you.