Blue Dart Express reported an 8.6 per cent year-on-year drop in its first-quarter net profit. Mounting employee costs have been identified as a major pressure source on its bottom line.
The DHL-owned logistics major posted a consolidated profit of Rs 48.8 crore for the quarter ended 30 June, down from Rs 53.4 crore in the same period last year.
While revenue from operations rose 7.4 per cent to Rs 1,441.9 crore, higher costs ate into profits. Total expenses increased by 8.3 per cent, primarily due to a sharp 8.7 per cent jump in employee benefit expenses. The company also reported higher depreciation charges, further impacting earnings.
Rising manpower costs come amid the company’s continued focus on expanding its operational network and strengthening service delivery. As Blue Dart scales up operations and builds digital and automation capabilities, talent acquisition and retention continue to be high-cost areas.
The company continues to see growth across B2B and B2C verticals, thanks to investments in hubs, air connectivity, and digital infrastructure. In the last quarter, Blue Dart inaugurated its largest integrated-operations facility in Delhi’s Bijwasan and enhanced connectivity to Guwahati.
Still, shares of Blue Dart have fallen nearly 7 per cent this year and closed 1.1 per cent lower today at Rs 6,489.75 on the BSE.
With cost structures reeling under pressure, especially on the human resource front, the company is trying to strike a balance between operational efficiency and fulfilling expanding workforce needs.
