Indian logistics company Blue Dart, which implemented a “rightsizing” programme – following a challenging trading forecast – has reported a loss in its third financial quarter.
The company, which operates a subsidiary cargo airline, reported that the loss was R330.8m – which contrasts with a profit of R313.5m at the same time (period ending 31 December) in 2018.
The company, which is majority owned by Deutsche Post DHL, said that the operating loss was accounted for by R641m of exceptional items as it embarked on a rightsizing programme.
Balfour Manuel, managing director, Blue Dart, said: “While [India’s] GDP growth has been revised from 6.1% to 5% for 2019-20, with our clear focus on service quality and cost efficiencies we are mitigating the challenging situation reasonably well.
“In our endeavor to build better future for Blue Dart, the Company has undertaken organization right sizing exercise for long term value creation for stakeholders. Our customers will always be at the center of our business and hence we will continue to invest to enhance our infrastructure and technological capabilities to stay relevant to their needs.
“With our customer focused strategy, we remain committed to serving Blue Dart country and sustaining leadership in air and ground express industry in India. We are thankful to our stakeholders, shareholders, customers, partners and our highly passionate team of Blue Darters who drive us to strive for excellence every day.”
Meanwhile, in an interview The Economic Times, DHL eCommerce chief executive Ken Allen, said that the company had over invested in India and specifically in Blue Dart.
He said that the company had made cutbacks and would now look to build up incrementally.
Blue Dart Aviation has a fleet of six Boeing 757Fs, providing a network payload of 504 tonnes across 74 route connections each night.