Blue Dart Express Limited (NSE: BLUEDART) Q1 2026 Earnings Call dated Aug. 01, 2025
Corporate Participants:
Unidentified Speaker
Tushar Gunderia — Head of Legal and Compliance and Company Secretary
Sagar Patil — Chief Financial Officer
Analysts:
Unidentified Participant
Krupashankar NJ — Analyst
Achal Lohade — Analyst
Nirmal Bang — Analyst
Anshul Agarwal — Analyst
Ankita Shah — Analyst
Presentation:
operator
So good afternoon everyone and welcome to the interaction with the management of Blue Dart Express. So firstly I would like to thank the management for giving us the opportunity to host the call. So today we have with us Mr. Sagar Patel, CFO and Mr. Tushar Gundevia, head of Legal and Compliance and Company Secretary. I would now hand over the call to the management team to provide some opening remarks on the performance and then we can start with the Q A session. Thank you. And over to you, sir.
Tushar Gunderia — Head of Legal and Compliance and Company Secretary
Yeah. Thank you Alok. And good afternoon all. A very warm welcome to all of you. I would like to inform you that Mr. Sagar Patil in Team CFO has since been appointed as Chief Financial Officer with effect from today, that is the 1st of August 2020. Life and most of you may be aware, Sagar is already associated with Blue Dot Express for last more than eight to nine years. As you are aware, the Board of Directors of the company in its meeting held on 29 July 2025 approved the financial results of the company for the quarter ended 30 June 2025 and the company declared the financial results for the quarter ended 30 June 2025 wherein the company posted revenue from operations of Rupees 140014419 million and profit after tax of Rupees 469 million for the quarter ended 30 June 2025.
Blue Dot continues to build strong momentum Driven by substantial traction across both B2B and B2C products. Blue dot marked a major milestone with the launch of India’s largest integrated operating facility at Bijuashan in New Delhi for further enhancing our operational capabilities in the service efficiency. Additionally, the Company recently announced the expansion of its network with the introduction of GATI last year as a direct flying location. This strategic move was driven by bluedart’s vision to empower Northeast Asia, Northeast India, a zone that plays a pivotal role in the country’s economic growth. Furthermore, Blue Dot was awarded the Best express logistics provider 2025 by the institute of Supply Chain Management.
In addition to this industry recognition, Blue Dot was also certified as Great Place to Work for for the 15th consecutive year. An acknowledgment of our unwavering commitment to fostering a culture of trust, inclusivity and excellence. By consistently investing our infrastructure and people, Blue Dot continues to strengthen its position as both the logistics partner of choice and the employer of choice. The results have been already uploaded on the stock exchange websites and also posted on the company’s website. I now hand over the call to Mr. Sagar Patil, CFO for further proceedings. Thank you.
Sagar Patil — Chief Financial Officer
Thank you. Good afternoon all. Sagar Patil here. So we have closed another quarter with a healthy growth on revenue backed up by good growth in kilos as well as shipments. We have closed the quarter at a consolidated level with a EPS of 20.5 rupees per share. And yes, the, this is, this is the normal business or results for the quarter. And uh. Yeah we are looking forward for uh, uh. Rest of the year and yeah, we can start with the questions.
Questions and Answers:
operator
Sure. Thank you. So first we’ll take the first question from Mr. Prashankar. Please go ahead.
Krupashankar NJ
Hi, good evening and thank you for the opportunity, sir. First of all a bookkeeping question. If you can share what would have been the tonnage for the quarter as well as the number of parcels transported.
Sagar Patil
Sure. So the number of parcels was 94.1 million and the tonnage was 340 or 340068 tons. Thousand tons.
Krupashankar NJ
Got it, got it. So. Yeah, so one follow up question on that. So as you can see that on a sequential basis the tonnage has improved and also the, the, the total parcels have also improved quite well. But if you look at the margins the decline has been quite sharp. You know what was around on a consolidated basis about 15 and on a standalone basis about 8, 8 to 9% has dropped to about 7% and close to 13 and a half percent. So just wanted to get some sense on what are the key reasons why the margins are weaker and if is there any one off related cost in this, in this profitability.
What you have reported,
Sagar Patil
the, the EBITDA margin has been 15.63% in last year same quarter which is now 14.15%. So there is a drop of about one and a half percent there. No one off. But what we see and also all the products are trending the trajectory. What we see is more of a change in the product or the customer mix. Some products going faster as you can see also last few couple of quarters we have been growing faster in kilos as compared to the growth rating shipment. So we see heavier parcels coming more so with the heavier parcels the, the element of I would say the freight as we see goes higher as compared to the service when it comes to the smaller parcels.
So we see that shift typically so there is no major business loss or gain for any specific customers. I mean beyond the materiality threshold. However we see that shift happening within the customer and the product or the lane Mix that we see weight mix as well. Yes. It’s a complex network with multiple locations, multiple modes that we operate in. So sometimes the customer mix may cause a percent here and there in terms of the profitability as it derives. So yeah, other than that there is no one off that has impacted this.
Krupashankar NJ
So nothing to do with the recently commissioned facility in Delhi because there should be some ramp up cost attached with it. So is that something which is potentially dragging your margins until the ramp up reaches an optimal level? That’s not a reason.
Sagar Patil
That’s not the reason. I mean yes, there is a new investment that has come in but in the overall scenario it is, it is not as significant as it will impact the margin as a percentage.
Krupashankar NJ
Understood. One more question which I had was with respect to government growth, what we would have reported on the B2B as well as B2C. If you can share that, that would be really helpful.
Sagar Patil
So yeah, I mean we do not have segmented results as such. But from the point of view of products per se, B2C is, is the ecom or retail segment as that we say. I mean as we call see growth is largely driven by both in B2B as well as B2C. But yeah, B2B also includes products like Air Parcel or Documents. In B2C we see revenue growth of about 20% and in B2B it’s about 2.4% for the quarter.
Krupashankar NJ
Oh that’s, that’s quite material I think. But, but in the previous comment you also mentioned that there is a higher growth in heavier shipment parcels as well. This is on a bio basis we are talking about, right sir?
Sagar Patil
Yes, yes, yes, yes.
Krupashankar NJ
So we are getting higher portion of heavier shipments in B2C as well. Is that understanding correct?
Sagar Patil
Within B2C if you look at it, there is no significant change in the kilos per shipment profile in our both ground as well as air segment of e tail within B2B surface which is A. A higher KPS as compared to air or documents. So that is where the KPs would go up. But as far as B2C is concerned, there is no significant change in the profile.
Krupashankar NJ
Got it. Thank you sir. I’ll. I’ll get back into you. Thank you.
operator
Thank you. Anyone, any question can please raise their hand or put it in the chat box below. So we’ll take next question from Mr. Achal. Please go ahead.
Achal Lohade
Yeah. Good afternoon sir. Thank you for the opportunity. Am I audible? Yes, yes, thank you sir. If you could help us understand in terms of the freighters, the number of Freighters, how many, how many of these are owned, stroke leased and B, if I look at the tonnages, what we report in the annual report, that seems to be fairly similar for last four, five years. If you could just clarify as to how it works in terms of tonnages. How do you compute that? Is that only for the owned or is that owned plus leased or is it the tonnages is for the.
Even what you ship through the other passenger. The, you know, passenger lines?
Sagar Patil
Yes, sure. So we have total eight freighters. We have six 757 and two 737s. Of this one 757 is least whereas the rest of the seven are owned ones. So that’s the profile of the freighters. In terms of tonnages. What we report as tonnages is including all the, all the products as we build to the customers. So be whether we fly them on our own aircrafts or our trucks or the commercial airlines. So these are. This include all the products. In fact, just, just to add also, these are all build kilos. So for example, if there is a shipment going from place A to B, there can.
These are essentially multimodal moments from door to door. So partly we may also move on road the same shipment. But when we report, these are reported as uh, as the build kilos because customer will be build only once for the total weight of the shipment.
Achal Lohade
Understood, Understood. And if you could help us understand in terms of the aircraft utilization, you know, for the quarter, how do you see it growing And I, I see that. And if you could help us understand in terms of the growth in surface versus air for the quarter in terms of revenues.
Sagar Patil
Yeah. So in terms of the. Sorry, the first question was about.
Achal Lohade
Yeah. In terms of the revenue growth in surface stroke air.
Sagar Patil
Okay. Yeah, yeah. So the surface growth, which includes both ETL as well as the Surface B2B the growth has been 13 in sales, whereas in here it has been 2.2%. Yeah, your first question was about the capacity utilization of the freighter. So it has been consistent around between around 85% plus or minus. So our capacity utilization is in terms of how do we fill our aircraft in terms of the weight that we carry on the pallets and not in terms of the number of hours that we fly for. Essentially these are the, these are the flights that fly essentially at night, you know, to carry the day, the, the daily, daily picked up shipments, etc.
So there can be different ways of looking at aircraft utilization. For us it is supporting our express movement. So we can. We, we Calculate based on the loads that are being loaded on the aircraft when it flies. So and also the way we operate our network is that we ensure unless there is a load available, be it weekend or holiday or weekday, we would not fly the aircraft because we also have a good amount of network on the commercial airline, the Bailey loads that we car.
Achal Lohade
Got it. And if you could just clarify on the lease arrangement, sir. So out of eight, you said one is leased, everything else is owned. Is. Have I understood?
Sagar Patil
Right, Right, Yes.
Achal Lohade
Okay. So if you could help us understand, you know, in terms of these cost, how does it work for the owned versus leased and how do you make the decision between, you know, whether to purchase aircraft or take it on lease?
Sagar Patil
So we had most of our aircrafts leased at some point of time, I think few years back. We converted them into from lease to buy essentially when, even when we lease the aircraft, the, the requirements related to maintenance approvals, statutory approvals, these are all to the account of the Lacy. So we found them more beneficial by leasing, I’m sorry, by owning rather than by leasing, because the interest element was proving out to be better from balance sheet point of view. Also, even if you lease, they are accounted as a rou asset in the balance sheet, so it doesn’t make your balance sheet light as such.
So from that point of view, we converted them from lease to buy some time back.
Achal Lohade
Understood. And just one last question, if I may. In terms of fundamentally between air and surface, is there a difference in terms of Rosie profile? I understand last time you said margin. There isn’t a big difference between the two, but how about the Rosie
Sagar Patil
from. Rosie point of view, I mean there are two elements. One is return and then the capital employed. So capital employed for air would typically be higher because of the captive assets that we have. So the Rosie would be relatively lower as compared to surface.
Achal Lohade
Understood, Understood. You also had one. Yes.
Sagar Patil
You had also one question as in terms of the kilos or the weights have been little more or less on the same lines since last few years.
Achal Lohade
Past few years? Yes, sir. Yeah.
Sagar Patil
One reason that, yeah. 21, 22 financial year, including even 22, 23, we had done lot of charters in during post pandemic times. So that had taken our kilos really on a higher level. It was more of a pandemic impact where we had to, we could fly large number of kilos across the countries as well as within the countries. And now after 23, 24 onwards, it is a normal business that we are in.
Sagar Patil
Sounds good, sir. Thank you so much for the Clarification. I’ll fall back in the queue for further questions. Thank you.
operator
We’ll take next question from Mr. Dhruv. J.
Unidentified Participant
Yeah, hi. Am I audible?
operator
Yes, Dhruv. Yeah.
Unidentified Participant
So my first question is that if you could provide the mix between B2B and B2C as a percentage of consolidated sales, how much is what segment?
Sagar Patil
So for this quarter it is 71 and or 71 and 29. B2B is 71 and B2C is 29.
Unidentified Participant
And how has that trended over the last few years? Sir?
Sagar Patil
Last. So it was around last, last year, same quarter was around 74 to 26. So we have seen the share of B2C going up, but it was around the same between 70s and 30s in the earlier quarters. So. Yeah, yeah.
Unidentified Participant
Sir, broadly, what would be the margin differential between the two segments?
Sagar Patil
Margin across the products would be more or less same on the same lines as I would say, the yield would be different but the margin percentage would be similar. Yeah.
Unidentified Participant
Okay. And so no optically looking, you know, B2B growth seems quite low in this quarter. So just wanted to understand how should we think about this segment’s growth over the next say two to three years and you know, why such a smaller number in terms of growth in this quarter.
Sagar Patil
So we do have, we would have plans to grow the B2B business as well, especially driven by the surface on air. We have captive capacity and it is also optimally utilized unless we have opportunities for doing daily fly day flights either for charters or. So I mean it would be a forward looking statement, but I would say that we are also looking for growing our B2B segment faster. Surface, B2B, we do not have a very high market share. We are not number one over there. So there will be plans to you know, ramp up that business along with of course B2C on ground as we call that, plus we used to call it.
So I mean there is plan on the both the segments
Unidentified Participant
and so in. The B2B segment, if I may, if you could just split what would be the air mix and the road mix? The surface mix.
Sagar Patil
Air would be slightly higher in terms of revenue. So 71 may include about maybe 35% of air and no, close to 40% would be air and 30% would be surface.
Unidentified Participant
Got it, sir. Thank you so much and all the best.
Sagar Patil
Thank you.
operator
Yeah. Sir, we have one question in the chat box. So one, the first is on the margin side. So a margin actually had come down in the quarter if you look at that, the standalone basis. So what’s the view ahead or should, should it improve from here on? Or any color you can throw on the margin side?
Sagar Patil
Yeah, I mean without making a forward looking statement. But yes, we. There is also seasonality that comes in wherein we have a second half characterized by the peak loads that come in. So the focus in first half is typically to maintain and plan for maintaining the service quality when the peak volumes come in. So yeah, we would be working towards improving the margin but this is a normal business that we have had in this quarter. And yeah, the effort will be to improve the margins.
operator
Sure. We’ll take Next question from Mr. Nirmal. Please go.
Nirmal Bang
Hello, Am I audible?
operator
Yes.
Nirmal Bang
Thank you for the opportunity.
operator
No, you are not quite audible. There is up and down in your voice. Hello,
Sagar Patil
can you repeat the question?
Nirmal Bang
Is it better now?
operator
Yes.
Nirmal Bang
So my question is. In one of the responses you mentioned that the fall in EBITDA this quarter has been the result of change in customer mix. So if you can elaborate on that, what kind of customer mix are we talking about?
Sagar Patil
So it’s a mixture of, you know, number of factors including the at times maybe a high margin or high. I mean the, the mix of customers, the product mix as well as lane mix. So if the customers who provide you good volume and enjoying better pricing if they ship more or if the customers who ship with you a higher kilo or KPS product versus the lower kilo kilo product. So the service element in the product involved, if that goes up and down then the margin can also move accordingly in a short term.
Nirmal Bang
Okay. What was the reason for rising other income, other expenses this quarter about 25%.
Sagar Patil
So other expenses would include say rentals wherein we had implemented or we had added Bijuasan last year around I think this quarter, part of the quarter that spend was not there. So that will be one small reason over there. Communications. There will be some increase but not a big number. We have implemented some automated tools for call bridge where we have invested some amount. There.
Nirmal Bang
Should be the sort of normal. Should we see this going at next quarters also?
Sagar Patil
So in terms of absolute this may not go down but this will support the incremental volumes as the business goes up with continued growth. So as a percentage to revenue it can improve.
Nirmal Bang
Okay, one last question. Number of shipments?
Sagar Patil
Yes.
Nirmal Bang
If you look at the growth in number of ship, growth in the number of shipments and also for the past three years while growth has been positive, the growth rate yoy has come down from about 24 to 5% in shipments and 24 to 11. What could be the reason.
Sagar Patil
Yes, that is where if the higher kilos per shipment heavier parses go grow faster. These are characterized by more of a freight element. I would say that the customer look at it. So that is where the rates become more competitive. Whereas the smaller lighter shipments would have more of a service component from a door to door efficient, timely delivery point of view. So that is where the value perceived and paid for by the customers would be higher for a lighter ship. So if your kilos go faster as compared to shipments in a given period, there can be some dilution in the margin.
Again depending on. Along with that comes the lane makes, customer makes, etc.
Nirmal Bang
Thank you so much.
operator
We’ll take next question from Mr. Anshul. Please go ahead.
Anshul Agarwal
Hi. Thank you for the opportunity. One clarification, sir. What is our B2B and B2C growth numbers for the current quarter? Why? And why I missed that number?
Sagar Patil
Yeah. So for B2B the revenue growth was 2.4% and B2C was 20.2% in revenue.
Anshul Agarwal
Got it. I understand that, you know, we don’t break down our revenues in terms of air and surface. But in in general understanding would be to see see a larger share of surface or is it more restricted towards air only?
Sagar Patil
So the surf. The share of air has been more in B2C but our ground B2C also in fact has been the growth driver. So the the share of ground has been also growing. The ratio is between now 16 is to 11 between air and ground on B2C in revenue.
Anshul Agarwal
Okay, so the. Just the way you suggested that, you know, 40, 30% is the breakup of B2B in air and surface. In B2C it is 1611. I didn’t. Is that correct?
Sagar Patil
Yes, yes. Yes. That’s the issue.
Anshul Agarwal
Yeah, got it. The second question was in terms of understanding, sir, when you mentioned that you know, when kilos grow faster than shipments, wouldn’t that also imply that when surface grows faster than air? Because I would suspect the lighter shipments go via air versus the heavier freight goes via surface. Would that understanding be correct?
Sagar Patil
Largely, yes. Because the products also are so. So we do have shipments, heavier shipments going on air. We have the air parcel business catering to that. But yes, the surface shipments would typically be heavier than the air shipments.
Anshul Agarwal
Got it. That’s it from my end. Thank you.
Sagar Patil
Thanks.
operator
We’ll take next question from Ankita. Please go ahead.
Ankita Shah
Hi. Thank you, sir. We were doing investment in our ground network. So largely the focus here is to handle more B2B parcels or B2C parcels. And where can we see this improvement in network? Because if I see the annual report, the facilities two years back was approximately 2347, which is now 2284. So you know, where are these investments happening?
Sagar Patil
So largely the investments also happen by consolidating smaller facilities. And that is what we have done in Bijuasan last year for air come E tail facility. Even what we are doing now for ground facilities also consolidation of about 10 facilities. So typically as the business grows, we do not do a big bank, big investment. But then in pockets, wherever the custom, the demand is increasing. That is where we add the facilities. But then when it reaches to a good, you know, good volume, then we consolidate. So that is where the. The reduction in the number of facilities will be a mix of both consolidation as well as at times closing down.
The smaller facilities, remote facilities where we do not see a significant utilization. These will be very smaller small facilities. 100 square feet, 200 square feet also would come in there where we. We may consolidate or even close sometimes when there are no significant business or shipments going to that location.
Ankita Shah
And between focus area more towards B2B volumes or B2C.
Sagar Patil
It’s. It’s both. So our driver has been surfaced. B2B the growth driver and the the E tail. Both are running on ground. Yes, B2C. B2C on ground as well as B2B on ground.
Ankita Shah
Hello. Sorry. Sorry for the disturbances.
Sagar Patil
Could you hear me?
Ankita Shah
Yes, sir. Can you please repeat?
Sagar Patil
Yeah, so I was saying our growth drivers are both in B2B as well as B2C in terms of volumes we saw. We see the growth coming from surface B2B and also from the surface B2C which is the ETL business.
Ankita Shah
Also sir, you was earlier giving that tonnage handled on or old owned aircraft. In the annual report. I didn’t find the number this time for FY25. So how much would that be?
Sagar Patil
Okay, I do not have that number handy right now.
Tushar Gunderia
We’ll send it to you.
Ankita Shah
Got it? Got it. And sir, where is the new. The two new aircrafts that we had added? On which routes are they deployed currently? And what is the utilization of the two aircraft specifically?
Sagar Patil
So we. We run a network. So these are not catering to any point to point. But then both the aircrafts are touching guarantee. So while Guwahati is one of the stations for them. They also touch Delhi, Bangalore as well as Mumbai in their route at night.
Ankita Shah
And utilization.
Sagar Patil
Utilization Again it’s a. It’s a normal. It will be about 85%. There would be a it would made up of sectors which is. Which are weak and you know, strong. But overall utilization would be at about 85%.
Ankita Shah
Got it. And sir, let’s just one last thing again on the annual report here the we have our per night capacity. Earlier it was 500 tons per night. Even after the addition of the two aircrafts also it still shows 500 tons per night. Has it not gone up our capacity?
Sagar Patil
You are comparing 500 from which year we have mentioned in annual report.
Ankita Shah
Sir, I have numbers since FY18 this number is showing 500 tons per night till FY25 annual report.
Sagar Patil
We’ll check. We’ll check and come back to you.
Ankita Shah
And sir, last one, if we say that our profitability both on the B2B and B2C segment in percentage term, the profit markup on both the segments is similar, then why change in mix is impacting margins.
Sagar Patil
So when we. When you look at the profitability the we have a network that is. That is interconnected when it comes to products. So these smaller parcels will have a same first mile and last mile but it will get mixed up with the middle mile when it whether it is air or ground, depending on whether it is going on air or ground. So there are some. There would be some allocations in play especially when your ground is growing faster as compared to air. The, the. The variable margin on the air because there is a largely fixed capacity will be relatively lower as compared to ground.
So I am talking about variable margin, not the actual margin as such. So when the business grows and when it goes more on ground in a quarter then there can be a. At an overall level, the margin can grow slower or it can be lower as compared to the earlier quarter as such. So but at the same time, having said that air is a limited resource. We are the only freighters who are consistently flying aircraft on a daily basis. So there can be a. So with the same capacity and with the business volumes growing there can be a better possibility of getting better reads over there.
So that again opens up an opportunity when we look at the movement in margins happening. So as a business we can we keep on looking at what mix of products or mix or customer mix or the lane mix that is being flied and work towards reaching to a better number of yield improving the margins at an overall level.
Ankita Shah
So I understood this on the ground and air side. But on the B2 B2B parcels and B2C parcels, if there is, you know, is the profitability even on the B2B parcels and B2C parcels also has this variability like the way you said between ground and air. And if that is the case, which one is better for you in terms of profitability? Is it B2B parcels which are higher weight parcels or is it B2C which are low low weight parcels which yields better profitability.
Sagar Patil
Even in case of B2B and B2C depending on. So at a standalone level of or a static level of margins they are comparable, not very different than each other, but depending on which the variability in the volume. So if your ground grows faster, it grows along with the variable cost. So in a quarter, if the air is not growing as fast as ground, the impact of variable margin would be less beneficial in that quarter as such.
Ankita Shah
Got it. So effectively basically it is not the type of shipment, whether it’s B2B 2C it is more mode of the movement of the cargo which impacts the margins.
Sagar Patil
Yes.
Ankita Shah
Am I correct?
Sagar Patil
Yes. Yes. The variability would be more on a air where we have a largely fixed kind of network, though it is optimally utilized but at the same time the incremental volumes coming in on a variable but lower cost commercial airline over there will yield more margins for the air product.
Ankita Shah
Got it, Got it. Got. That’s it from us. Thank you. I’ll get back in.
operator
Sir, just one question is there in the chat box. So any color on the volume growth for this year as well as next year?
Sagar Patil
Sorry, wouldn’t get any.
operator
Any color on the volume growth, you know, trajectory for this year and next. Year
Sagar Patil
maybe it would be a forward looking. So you will not be able to comment. There will be seasonality and there will be of course running growth that is happening and will of course as management will try to improve the numbers. But no view from the company point of view. Sure.
operator
And just one more question is that on the capacity utilization, if you can just provide some capacity utilization on the new aircrafts and you know how. Where it has reached and what’s any sense on the existing aircrafts as well.
Sagar Patil
So the new aircrafts have also reached the the normal capacity utilization which comes to about 85% percent.
operator
So all the. Yeah.
Sagar Patil
Yes. So they basically we don’t fly point to point. It’s a part of an overall network and even the new aircraft have been kind of merged into the existing network adding only Guwahati as an additional station. So. So overall network utilization is about 85% and that is more or less standard across the flights.
operator
Got it. Yeah, I think those were the question. Anyone having question can please raise their hand or we can Close the call. Yeah, I. I think we’ll just take the last question from Mr. Archer. Please go ahead.
Sagar Patil
Yes.
Achal Lohade
Yeah, thank you for the follow up. Sir. Sir, if you could give us a sense in terms of the demand situation, you know, or the business, how it is trending because we hear that consumption is weak, there is fair amount of slackness. So just wanted to check, you know, are you seeing any improvement in the volumes as we speak and, and be any structural change you are seeing in the industry in terms of competition or in terms of pricing or anything on that front? Sir.
Sagar Patil
So our volume growth trajectory, you can see that, I mean it remains stable, not significantly going up or down. So from that point of view, and we also have a very stable base of the customers. Even when we hear about slowdown in certain industries or at times in E commerce, we don’t see that because we are not very big player. But we service the very niche set of customers. And customers also given the premium that we have with the service quality, customers would use us for their critical shipments where they are willing to pay a good price given their service requirements or their customer requirements as such.
So we don’t see a very significant upper up or down in the numbers that we have understood.
Achal Lohade
And of your total expenses, sir, would it be possible to know what is the fixed cost? As in if the volumes go down 10%, you still incur the same cost. If you could give us a sense, let’s say of the, you know, the quarter’s expense, how much would be fixed? Let’s say of the total employee cost and the other expenses, we have roughly about 400 crores quarterly expense. Right. So how much would of this would be fixed cost according to you? Because I presume the freight and service cost and all that will be fixed before we calculate the gross profit.
Sagar Patil
So yeah, employee costs would be largely fixed in a short to medium term. Within freight handling, we have a mix of both fixed and variable. The aircraft cost will be largely fixed as far as the, the, the cost of the aircrafts. But the running cost of the ATF would be variable with the number of flights we would have. And largely we try to variableize that by ensuring that we fly only when we are sure of the capacity being utilized. But now with the increasing growth in the ground, we also are increasing the variable variable costs for the middle mile, last mile.
Also largely our deliveries are outsourced with our vendor, with their partners which will have 50, 50 variable and fixed element. So it’s a mix if you ask me, at a quarter level. Looking at the expenses, how much will be variable and how much will be fixed, it would be close to 50, 50.
Achal Lohade
Operating leverage. Actually if the growth picks up, you know, if the growth is substantial, let’s say a double digit growth, you can have a reasonably large delta on the margin. Is that, is that understanding right?
Sagar Patil
Yes, that is one. Yes and no because with the, with the capacities being largely optimally utilized, we also cannot add a very big volume because the capacities are all across. They are not only. Yeah.
Achal Lohade
Sorry, I couldn’t hear you sir.
Sagar Patil
Yeah, so the, the, the first mile, last mile capacities would take time to ramp up be it facilities or even manpower for pickup and delivery. So we need to really, when pick up, when peak season also happens, we, we start ramping up the capacities which are variable. So for a one or two months of peak also they would be more or less like fixed in nature because we would have, we would hire the vehicles as well as manpower for that period. And some facilities here.
Achal Lohade
Understood greater. Those were my questions. Thank you so much.
operator
Yeah, so we’ll just take one Last question from Mr. Vinod from me now. Please go ahead.
Sagar Patil
Hello, Vinod, you’re on mute.
Tushar Gunderia
Yeah Vinod, you are on the mute.
operator
Yeah, I think.
Unidentified Participant
Can you hear me now?
Sagar Patil
Yes, yeah, yeah.
Unidentified Participant
So thanks for the opportunity. Sir. This is such a. I mean I like to hear the strategy question like how does Blue Dot plan to strategically balance its focus on expanding the market share especially let’s say particularly in the surface segment where the competition is growing much faster while simultaneously driving the margin recovery as well in the coming years through operational efficiency as well as the. Under the premium service differentiation.
Sagar Patil
Yes. So our prime focus is always on service differentiation, the service quality. So while we also work towards increasing the volumes, the market share, that is without giving up on the, on the margin. Yes. It’s a mix of different products with different variability with margins going up and down with the increasing volumes depending on the customer mix as well as the product mix. But the prime motto is to, to have the differentiated service which will help us to grow with, without giving up the profitability. I hope strategically that is how we look at
Tushar Gunderia
profitable. Revenue is the key.
Sagar Patil
Yes.
Unidentified Participant
Okay. So basically you don’t want to sacrifice just for the sake of increasing the volumes.
Sagar Patil
Yeah, that’s right. Yes.
Unidentified Participant
Thank you. Fine. Thank you sir.
Sagar Patil
Thank you.
operator
So we are done with the questions. So sir, any closing comments from the team? Then we can close the call?
Sagar Patil
Yeah, so I mean we, we see the growth trajectory being consistent and stable and we are also working towards improving the business further with improvement in both in taking care of the peak volume, adding to our profitability as well as margin. That is, that is going to be the way forward for us.
Tushar Gunderia
So thanks everyone for joining in. And once again, thank you to the management of DO for giving us opportunity to host the call. Thank you. Thank you, everyone.
Sagar Patil
Yeah.
Tushar Gunderia
Thank you all. Thank you, AOK for organizing. Thank you.
Sagar Patil
Thank you.