Blue Dart targets 18% B2C revenue growth for this quarter
B2B surface shipments grew by 23%, the lighter nature of these consignments moderated the revenue growth to 3.5%.
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Logistics company, Blue Dart Express is projecting 18% revenue growth in its Business-to-Consumer (B2C) segment for the current quarter, while expecting more moderate 2.5% growth from its larger Business-to-Business (B2B) operations.
The company's business split currently stands at approximately 70% B2B and 30% B2C, as the strategic importance of the higher-growth B2C sector as a core driver for overall expansion.
During a post-earnings call, Blue Dart CFO Sagar Patil said, "It depends on overall how the economic growth of the country, the reliance on the express with the B2C has a growth driver for some time, so that remains while the B2B is growing positive".
Patil noted that while the number of B2B surface shipments grew by 23%, the lighter nature of these consignments moderated the revenue growth to 3.5%. However, this product mix shift is translating into higher realisation per kilogram (RPK).
"If you look at from an RPK point of view, the realisation per kg, there will be increased because we have more and more lighter shipments. That comes at a higher realisation per kg. So that mix within an even surface would have the RPK to go up," he added.
The B2B segment, which combines documents, air B2B, and surface B2B, is seeing the surface B2B product grow at the fastest pace.
Network and capacity investments
Blue Dart continues its strategy of capital expenditure (Capex) to bolster its extensive air and ground network. This includes capacity additions across locations as facilities come up for renewal or require expansion.
Regarding the air network, the company is actively evaluating different modes, "not only for the number of aircraft but also almost on a regular basis as to how many sectors we need to fly, how many flights," the CFO noted.
The integration of Guwahati into the All India Network, serviced by new freighters, has been a key focus. Post-September 2024, the utilisation of the air network has stabilised at an optimum level of over 85% on a volumetric basis, even after adding the new aircraft.
Volumes from Guwahati to the rest of India have also ramped up, tracking between 50% to 60% utilisation for core products, contributing to the overall network efficiency.
