Logistics services provider Blue Dart Express Ltd reported a drop in profit for the second quarter in a row on Friday on continued pressure from higher expenses.
The Deutsche Post-controlled company's consolidated net profit fell over 49% to 694.4 million rupees ($8.5 million) in the fourth quarter.
Blue Dart's revenue rose over 4% in the quarter, while its total expenses rose over 14%.
Why it matters
Blue Dart, like other third-party logistics companies, rode a pandemic-led demand boom as people embraced shopping from their homes during the COVID lockdowns. However, they are now facing the double hit of high fuel costs and softening demand in the e-commerce segments.
Blue Dart's revenue growth in the October-December quarter slowed to single-digits after two years of double-digit growth, which also pushed it to its first drop in profit in 10 quarters.
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