Q1-FY25 · Sudha Pai
We expect the margins to improve by another 2% to 3% from the current levels.
Blue Dart · tone and specificity signals across the available quarters.
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We expect the margins to improve by another 2% to 3% from the current levels.
We do not give any forward-looking predictions.
Service quality is always the prime criteria.
We see that shift happening within the customer and the product or the lane mix that we see, weight mix as well.
The primary motive is to have that differentiated in service, which will help us without giving up the profitability.
We will not be able to comment. There will be seasonality, and there will be, of course, a volume growth that is happening.
Our utilization on the new aircraft has increased from the previous quarter. The fixed expense, the unutilized expense that was there in the last quarter was around INR 11 crores, and now it's somewhere around INR 8 crores.
We expect the festive to help us to improve our margins there, and ideally, we should hit that budgeted level of margins of around 8%.
Blue Dart, per se, if you look at the past trends, has been consistently and very conservatively on a single-digit margin. We expect to remain within the same range between 7% to 8% to 9%.
The improvement in the margins will be more of a function of yield improvement as well as any cost improvement in terms of rationalizing the network design.
Ground continues to be the main contributor to the growth.
We do have an advantage of having our own freight fare. So we have a control on what we carry and how fast.
Our aim is to have a structured investment which takes care of our profitable growth.
We do not give any forward-looking statement, but we would be releasing our budgets very soon.
Our service quality standard that we maintain, we have certain internal KPIs that makes us kind of standing out.
We can target that level of margin, but see the 12%-13% that we saw were post-COVID impact that we had seen. The way we are also trying to devise or improve the margins, not impossible to get to those levels of margin, in the medium to long term, I would say.
Given the consolidation that has happened, there could be a better opportunity to realize better price points to charge for the value being delivered.
Our pallet utilization remains at around 85%-90% for a volumetric weight kind of level.
The significant investments that we have done in the last year have also been very well operationalized.
We have taken successful price increases with both big and small players. We do remain in a strong position there.
From here on, we should only improve our returns as well as the return on capital employed.
Ground continues to grow faster more than 10%... while the e-commerce on air has been steady not very much growth.
The approach is to more balance to ensure the profitability in absolute terms.
We do not provide the breakup for the of shipments or payload between air and ground being sensitive information.