Blue Dart Express Limited (526612) Earnings Call Transcript & Summary

So good afternoon, everyone, and welcome to the interaction with 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 Patil, CFO; and Mr. Tushar Gunderia, Head of Legal and Compliance and Company Secretary. I would now hand over the call to the team to provide some opening remarks, and then we can start taking the questions. Thank you, and over to you, sir.

Yes. Thank you, Alok, and welcome all investors for this earnings call. Good afternoon, everybody. A very warm welcome to all of you. As you are aware, the Board of Directors of the company in its meeting held on 28th October 2025 approved the financial results of the company for the quarter and half year ended 30th September 2025 and the company declared its financial results for the quarter and half year ended 30th September 2025, wherein the company posted revenue from operations of INR 15,493 million and profit after tax of INR 795 million for the quarter and half year ended 30th September 2025, respectively. Blue Dart's quarterly performance reflects resilience in a dynamic and evolving environment, reinforcing the strength of our business model and our agility in responding to market shifts. As part of the strategic growth agenda, Blue Dart recently announced 2 significant initiatives, namely the launch of a Digital Account Opening platform, enabling businesses of all sizes to onboard and start shipping under 10 minutes and also the unveiling of a flagship Green Integrated Ground Hub at Pataudi, Haryana designed to boost the company's express network with sustainable technology-enabled infrastructure. Together, these initiatives reflect Blue Dart's ongoing investments in digitization, green logistics and customer-centric solutions, thus cementing its role as the preferred logistics service partner for India's growth journey. The results have already been uploaded on the stock exchanges last week and also posted on the website of the company. I now hand over the call to Mr. Sagar Patil, CFO for further proceedings.

Thank you, Tushar. Good afternoon all. So we have closed this quarter with positive revenue growth and also improvement in the EBIT margin with the improvement actions by management, both on yield as well as on the cost front. With that backdrop, I would request for the Q&A sessions. Thank you.

[Operator Instructions] Sir, we take first question from Krupashankar.

So my first question would be on the housekeeping questions. What would have been the tonnage and parcels for the quarter?

Yes. So the shipments were 106.2 million shipments and the tonnage was 3,63,974 tonnes for the quarter.

Got it. So I would take into consideration -- the margin improvement, is it purely a function of... Yes, am I audible? Yes. So what I was saying is that the margin is a function of operating leverage? Or would you like to point out the sustainability of these margins in the upcoming quarter?

So this quarter, we had a growth of 10% in number of shipments and 5.9% in the weight. So the number of lighter shipments should have grown faster. In terms of operating leverage, our aircraft as well as on-road capacity of vehicles has continued to be good. There has been both on the yield as well as cost improvement just wherever the management has seen scope for improving. But it is largely, I would say, attributable to the favorable change in the mix, both customers, products, the profile of the shipments as well as lanes that has helped us to improve the margin for this quarter.

Sir, what would have been the B2C growth this quarter given that the average rate on the shipment has come down? Any light you want to throw on that?

B2C growth would have been close to about 17-plus percent for quarter-on-quarter -- I mean, for the year-on-year same quarter compared.

Understood. Also, sir, with respect to your air business, the mix of air versus ground, is it stacking in growth in ground? Is it becoming much more resilient in comparison to air? And what would be the mix right now? Any guidance you want to share given that you're adding a lot of infrastructure on the ground side? So anything you can share on the expectations on ground?

So the products as such, what we call ground or primarily more ground has continued to grow faster as has been for the last few quarters, both on B2B as well as B2C, while air continues to grow faster.

Right. But you've added a lot of infrastructure also and Pataudi is another place where you've added another ground hub. And this comes on the heels of the Delhi infrastructure, which you had added during the course of this year starting. So just getting more sense around what exactly is the expectation on ground, are we upping our service levels? Or are you planning to launch any new services in the ground category, which is where the infrastructure requirement is come up materially? Or is there any other thought process behind infrastructure? What is the further expectation on infrastructure expansion? If you can highlight on that also, it will be helpful.

Yes. So last couple of years, we added mainly in North in Delhi, one Pataudi or Bijwasan, which has been more of an air hub. And last quarter, we also have launched a ground surface hub facility again in Gurgaon. This is a combination of both replacement or consolidation of a few multiple facilities. So it's more of a consolidation, come expansion, come automation. Of course, when we add, there is also a better buildup for the volumes to grow in the foreseeable future. But largely, it's an ongoing expansion. And when we do that expansion, it's automation as well as consolidation, keeping that in mind, not for any significant or a new service to be added or a new specific product or that kind of opportunity. It's more of an organic growth, but keeping an eye on improvement in the efficiencies that helps the -- both service quality as well as the cost efficiency.

Got it. I had also asked on what would have been the mix between air and ground this quarter? Or what would have been the growth in the ground business? Anything you can highlight on that, sir?

So growth continues to be -- I mean, ground continues to be the main contributor to the growth. So as far as the ground B2C is concerned, that is continuing to grow at a healthy rate, almost 30% increase in the e-commerce that moves on ground as well as the B2B surface that we call ground, that also continues to grow. And for this quarter also, the shipments have grown by 23%, a bit of profile change over there where we have also moved large number of small shipments over there. So the increase in sales over there, it will be close to 3.5%, 4%. So that remains a prime mover or the growth driver. Even on air, B2C this time has grown by almost 10%. So while both air and ground are growing, the prime growth driver is ground.

We'll take next question from [indiscernible].

So sorry, I have not covered the company earlier, but I have gone through the previous conference call transcripts. In light of that, I would like to understand that in 2023 earnings calls, we had mentioned that there are some new customer acquisition engine that we have deployed. So I just wanted a follow-up on that, that what is it that we have started to do differently since 2023? And what are the results that we have seen since then?

So this has been more of an automation or the expedition of the customer additions, keeping not big customers, but primarily for the smaller customers, where a customer can sign up, open the account online by submitting their KYC, by choosing certain prepaid plans and a very fast way of onboarding the customer and start shipping. And we have seen even earlier this year, in the last quarter itself, we have launched digital account opening, and we saw a very good response. 2023, when you talk about, it was a launch of prepaid customer where a customer could without waiting for the credit verification or would upload KYC documents, load a wallet and start shipping within a couple of days at the most.

Okay. So was it more related to customer onboarding versus customer acquisition, if that's the case?

Yes, it was -- we can say, it was customer acquisition through faster onboarding.

Okay. Great.

Primarily easing the way customer would get onboarded rather than waiting for moving the documents to and fro on the e-mail, customer could upload the documents. We also had launched a digital signature of the customer agreements in 2023 besides the prepaid. So it was more of customer onboarding, that helped in the faster acquisition of customers.

Okay. Okay. I understand. And if I have to understand the overall how the margins move. So I think we have also mentioned earlier that the variable margins goes up and down because of change in the mix between surface air, but not the actual margins go up and down. So I think this was in the previous call itself. So what is this actual margin that we are talking about? And how do we think when we are pricing our products, is it on cost plus basis in absolute terms? Or it's like cost plus some percentage basis when it comes to our pricing?

So the pricing, every time you add the customer, it is not by looking at the cost because in our network, we carry a very diverse nature of or diverse types of shipments from documents to very heavy ones from air to ground. And we also try and maximize the efficiency of our facilities or network by combining wherever possible all types of products without compromising on the transit times for the service quality being promised to the customers. So that being the case, the costs are largely allocated when you look at the profitability for the internal purposes. However, the pricing is not typically on a cost-plus basis. If we try to do that, given the large amount of origins and destinations, the number of pin codes that we handle, the cost of servicing those pin codes will differ significantly depending on not only the distances, but also type of network that we have, the density of the shipments that we have. So to keep the pricing relatively easy and simple for the customer to plan their shipments, it is based on the pricing metrics. And then depending on how the product mix of the shipment mix, both in terms of not only the mode of the transport, but also the shipment profile, whether it is very light or very heavy, the variability of cost may go up and down between the month. So the effort in order to ensure that we are agile in terms of ensuring our profitability, the effort is always to variabilize the cost as much as possible because we are already sitting on a very large base of fixed network, be it the facilities, aircrafts or the network, the committed network. So for a month, for example, from a month-to-month point of view, a good portion of the cost may become fixed. However, as we move, say, beyond a quarter or so, we can look at the trends, we can look at the seasonality, our forecast of how our major customers or the customers may move and we may try and variabilize some of the cost by reducing the runs or even reducing at the service providers, the feed on the ground depending on how the volumes pan out. So the pricing is not based on looking at the cost on a case-to-case basis. But yes, as we move around during the year, we look at how the business parameters across different levels move and then try and both correct the pricing required or the cost or variabize the cost wherever possible.

Okay. So this is very helpful, sir. Just on this particular point itself. So when we have spoken about fuel surcharge, we have a similar system on the surface transport as well, right, and not only air cargo?

Yes, we will have a fuel surcharge on the surface network as well, yes, product as well.

We'll take next question from Achal.

Sir, I wanted to check first on the sectoral mix. Is there any way you could give us some sense in terms of like the end user industries, whether it is pharma or industrial or ready-made garments, textiles, et cetera. Any color you could give in terms of the sectoral mix for us on an annual basis, a ballpark would help?

Not exactly, I would say, where we would get impacted by a major shift in any sector. Of course, except for the e-commerce, which remains a specific or a sector that relies a lot on the express network that we operate on. As far as other sectors, for example, auto or electronics or pharma, the customers would typically rely on a mix of full truckload, part truckload, freight shipment that may have a bulk volume where Express may not be always an economical way of moving. But wherever there is a part truckload or a smaller express shipments, which need to be carried across a large number of consign or destinations or in case of auto, for example, if there are critical parts that need to be moved on priority. So Express is something that we provide services to the customers primarily. And that may or may not always depend on the seasonal industry growth. It depends on the customers and how critical the shipment needs to be carried on Express because Express typically as compared to a normal transportation on the freight industry will carry a more price sensitivity than the cost or the price sensitivity. That's where it will depend on the needs of the customers and not linear -- may not move with the vertical growth or that industry growth in a linear kind of manner.

No, no. Fair point, sir. But just for our understanding in terms of from Blue Dart perspective, what is the sectoral mix for us?

So we are -- we do have quite a presence in a number of sectors critical for us being electronic, besides retail. Also when we say electronic, not only the mundane in comfort of our servers, but also the mobile phones as well as automotive. And yes, garments mainly from e-commerce perspective, a smaller portion on a B2B kind of movement, so where we carry from warehouse to warehouse. But yes, the supporting movement or the supporting to the retail sector when they move from one warehouse to another warehouse or from a vendor to warehouse, those are the cases where they come in more as a B2B movement of the shipments supporting the retail. So I mean, I say this, this is mainly from the point of parcel movement. Of course, we are -- we also have a big focus on the documents movement. So BFSI is a big segment that we focus on. And also given the presence all across supported by a dedicated fleet of aircraft, we are able to maintain a good amount of service quality irrespective of the geography that we service in. So BFSI remains a big sector. But besides all the other industrial verticals where express shipments in a relatively lesser kilo per shipment, not a freight movement, but more of an express freight movement is where we cater to all the industries.

Got it. Sir, when you say documents, how large would documents be as a percentage of our revenue?

It would be close to -- again, depending on the cycles of card renewals, debit cards, credit cards...

On an annual basis, if you would, sir?

It would be close to 25% to 30%.

And that would be predominantly on air, would that be a fair assessment?

Yes. So depending on, say -- for example, if you have to carry a document from Mumbai to Pune, then you may not physically carry on air, but yes, it's part of priority segment. So wherever air is the faster mode of movement, it goes on air. Wherever ground is even faster than air, depending on the aircraft or the weekend seasonality, it may also go on ground. But it's an express product, primarily on air.

Understood. And e-com would be what, 25%, 30% of our revenue, sir?

Yes, close to 30%, yes.

So these put together is about 55% to 60% of our revenue. Is that understanding right, sir?

Yes, yes.

Okay. Got it. Sir, just a couple of clarifications. Is there any one-off or reversals of expenses in this quarter? I mean, I'm just asking from, a, the gross margin perspective, if I look at, there is almost 200 basis points of improvement. And particularly, I was under the impression that the surface transport, which has grown faster is slightly lower margin on a gross basis. So if you could clarify on that?

No, there are no one-offs or there are no extraordinary elements in this quarter.

Understood. So if we were to sustain this kind of a revenue size or the mix, the margins can sustain at the current, what, 7% PBT level. Would that be a fair assessment, sir?

Yes. As I said, it's a question of the mix of customer lanes. So yes, if favorable or better conditions or mix prevails, there can be favorable movement or sustenance of these margin levels.

Got it. And any benefit of the early festival season you could quantify in this quarter?

There would be some element, but it's a mix of both early festive as well as the GST related movement that could also come. Difficult to quantify, frankly.

Understood. And just last question. In terms of number of employees, the 18,000 number what you mentioned in the presentation, is that the permanent employees on the payroll? And what would be the quantum of contractual employees for us?

So the contract employees, we don't call them, these are the employees of the service providers. That number would go to as much as 30,000.

Okay. Apart from the 18,000 what we have on our payroll, is that right?

18,000 -- I mean, if you include product addition as well, it will be close to 13,000 plus.

Okay. Got it. So 13,000 plus 30,000. Have I understood right, sir?

Not exactly. You can say 13,000 because it varies from month to month. So you can say INR 12,000 to 13,000 and around 20,000 to 30,000 in that range.

That service provider employees is quite a fluid number depending on how the seasonality, the number of shipments significantly can go up and down by few thousands...

In the range of 10% to 15%.

Depending on the season, yes. No fair point. I was just trying to understand what is the extent of fixed cost. Is there any quantification from a quarterly cost perspective, how large is the fixed cost proportion for us, including whether it is the infrastructure cost or people cost put together?

Fixed cost becomes a relative concept. So typically, for a month, you can say 60% of the cost should be fixed. However, as you go longer than a quarter, another 10% -- 10% to 15% can be variable in addition to that.

We'll take next question from Mr. Nirmal.

We have achieved a growth in e-commerce of about 30%. I just wanted to know was this on account of festive demand? Or is it like a seasonal growth that we get in Q2? And second part of the question is what sort of growth are we expecting in H2?

So 30% is the growth in the ground e-commerce. And yes, as the industry grows, we can look at playing a bigger role, but it will be difficult to assign any numbers from a future projection point of view.

Is this a seasonal growth that we get during Q2 in e-commerce?

So typically, this is the last -- I mean, September, October every year are part of increase in the shipments, retail-related shipments as well as the B2B supporting peak season. So there will be some element of seasonality in this as happens every year.

What sort of growth was there in e-commerce in Q1, if you can share that?

Sorry?

What sort of growth did we achieve in Q1 in the E-commerce segment, if you can share that?

In Q1?

Yes, sir.

Q1 also the surface light, we had about 30% plus 32%, in fact, in June quarter.

We'll take next question from Mr. Dhruv.

Sir my first question is around the split of the B2B and B2C segment. So if you could give the split for this quarter? And also just if you could tell us what's the growth individually in B2B and B2C?

So between B2B and B2C, it remains for this quarter, 70-30, 70% B2B and 30% B2C revenue.

And sir, growth for this quarter?

Growth for this quarter overall B2C would be 18%, B2B about 2.5%.

Okay. And sir, this 2.5% growth in the B2B segment, I'm guessing that the lower growth will be owing to the Air Express business and Documents business. And incrementally, how we should look at the growth trajectory for the industry here? Will it continue to be less than 5%? Or do you think that this industry can show some uptick?

It depends on overall how the economic growth of the country and the reliance on the Express there. B2C has been the growth driver for some time. So that remains while the B2B is growing positive.

Okay, sir. And sir, incrementally, how should we think about your margins? So you've reported a 7% PBT margin in this quarter. In the next 2 or 3 years, if you could just guide us, is like a 200 basis points margin expansion possible? Or will Blue Dart hover around this number?

All the effort will be to improve the margins from the current level.

But I mean, a critical part would be mix or are there operating leverage levers available where Blue Dart is working on?

So it won't be based on operating leverage because by and large, our facilities are very well optimally utilized. However, there is also a time -- so for example, when it comes to the air capacity, we largely fly at night. At the same time, when it comes to the ground facilities, there are certain times during the day where the facilities will be utilized to the -- especially in the evenings and in the mornings. So those peak hours at which the customers hand over the shipment and expect delivery, they are already optimally utilized. So not very significant operating leverage based on fixed costs given the capacity utilization already being good. So the improvement in the margins will be more of a function of yield improvement as well as any cost improvement in terms of rationalizing the network design, wherever the product mix as well as the densities allow us on a case to case at a location to location kind of level.

And sir, just one question on CapEx. So how should we think about your CapEx for FY '26 and for the next 2 years? Any significant capacity addition or freighter addition are you looking at?

CapEx for us is a normal phenomena in terms of given the large number of facilities that we have and as they come up for a renewal or they come to a level where there is a need to add capacities, we keep on adding across the locations. As far as air network is concerned, we keep on evaluating different modes of network, not only for the number of aircraft, but also almost on a day-to-day basis as to how many sectors we need to fly, how many flights. So I mean, that's a continuous exercise. And depending on how the economics develops in future, we can always be looking at maneuvering our capacities, be it addition or reduction or change of mix of the fleet.

But any number that you would want to share, sir, incrementally? Or it's going to be in the similar INR 50 crores sort of -- INR 250 crores, INR 260 crores sort of zone that...

I think it's a similar kind of nature. We don't have any -- because even after we added 2 major facilities in Delhi, it's not that our CapEx has gone up very significantly. If at all, the addition happens more on the ROU asset lease assets level, the CapEx is even for auto is not very significant if you add for a few facilities. So the CapEx will be in the similar kind of range unless we find some opportunity to add anything significant currently. I mean, we'll always update the stakeholders whenever we have those kind of plans. But as of now, it's the normal CapEx that will continue.

We'll take next question from Mr. Vipul.

Am I audible?

Yes, Vipul.

Okay. So on your Slide #19, you have this operating cost per kilometer, these 3 metrics you have mentioned in the left-hand corner. So can you give those figures? Is it possible to share those?

You are talking about the investor presentation?

Yes, sir.

Yes. So what is the question, please?

I want all those 3 figures.

We have already uploaded investor presentation actually today. It is available on the website. So if there is anything, you can always call me, Vipul.

No, no. You have just mentioned, but we have not put the numbers.

Numbers, we have put, Vipul.

The numbers are mentioned in the presentation.

You can go through it. And if there's anything, you can always call me on my mobile.

Okay. So let me check, then again I'll...

Yes, Yes. Otherwise, please call me on my mobile.

Or you can give me your number. I will call you.

We'll take next question from Mr. Anshul Agrawal.

Am I audible?

Yes.

Great. So question is on yields. So while -- please correct me if I'm wrong, generally, when surface grows faster than air, blended yields sort of blended realizations per kg sort of trend downwards. But this quarter, despite surface continuing to growing faster than air, the blended realizations have slightly inched up. Is there something that we need to sort of build in as part of future momentum as well in yields, surface could sort of see an uptick? Or if you could just shed some light on this?

So when you say yield, you mean to say the margin percentage?

No, per kg realizations on a blended basis.

Yes. So surface this time, we had an increase in the number of shipments versus the number of -- so if you look at from a RPK point of view, the realization per kg, there will be increase because we have moved more lighter shipments. So that comes at a higher realization per kilo. So that mix within even surface would have the RPK to go up.

Okay. So we have not taken any hikes or any change in pricing for surface or any product as such?

So not in general in the market, but customer-to-customer case, we do keep tracking the customer profitability and wherever we see either for a customer or even for a customer within a certain lane, if there is a need for price increase, those actions would happen -- would keep on happening throughout the year. But no specific big bang price increase as such besides our GPI that we have...

GPI would come in from January the coming year, right, January calendar year 2026. All right. Second question that I had was, any color on uptick in utilizations in the new freighters or Guwahati as a center? Are we seeing more of Express business happening from Guwahati versus the direct port-to-port deliveries that we were sort of doing in the previous few quarters?

Yes. So the new freighters, they cater to not only Guwahati, but has been merged in our All India network. Yes, we introduced or added one sector that is in terms of Guwahati. So especially after the last year, sometime in August, September -- post September '24, the utilization has -- even after adding the new aircraft has come back to the normal level of 85-plus percentage volumetric weight. The volumes into Guwahati have been at an optimum utilization, again, in the range of 85% to 90%. Volumes from Guwahati to the rest of India has also gone up, not optimum. It will be -- I mean, not full, but more than 50% to 60% is what -- with the core products is what I'm talking about. But what we track is the overall network utilization or aircraft utilization, which has been at an optimum level, more than 85%.

Got it. Just one last question on B2B business. Any particular reason why the growth has been so muted in B2B business? And any particular call-outs that you would want to share with regards to strategy in the B2C business? Why has the growth sort of accelerated in B2C, whereas in B2B, which is predominantly sort of a bread and butter business, we are seeing such muted trends?

So B2C remains the growth driver and within B2B as well, surface keeps growing faster. Probably the improvement in the transit times with the GST, EVB-related movements has also been making ground more efficient. So that is where for us also that has been the area -- that has been the mode where we grow faster. So when you combine B2B as a mix of both surface and air, where air is a higher realization in the pricing, whereas ground is a lower realization in pricing. When the ground grows faster versus air, the blended mix of the 2 would seem as if B2B is growing slower than the B2C. But it's more of a mix change that is also happening over there. While from a percentage margin point of view, ground also remains as profitable as air. But as a mix in terms of field per kg, it would show as if B2B is growing faster -- or slower as compared to B2C because of this change in the mode there.

Sorry, I didn't quite get that. So when ground grows faster, does B2B grow faster or B2C grows faster?

Ground is also a B2B product. Our surface B2B is also ground product. So B2B is a mix of the documents as well as air B2B movements as well as the surface B2B. And within these 3 products, surface B2B has been growing faster.

In that sense, did air degrow in the B2B business in the current quarter because overall B2B growth has just been 2.5%?

Yes. And within that, yes, surface has been at 3.5%. Though the number of shipments have grown by 23%, the number of lighter shipments have gone up in surface B2B. So the revenue growth is 3.5%.

For surface. Got it.

Yes.

We'll take next one from Krupashankar.

One question. So what we are picking up is that on the e-commerce side, the realization has increased per shipment. So is that something which you've also seen over the last quarter or so?

Sorry, come again. Over the last quarter...

So the price per shipment in e-commerce, what we are picking up is that for the industry, it has gone up, right, on a Y-o-Y basis, right? Is that something which we are also seeing given that our growth in B2C shipments have also been good. But if you look at overall shipments, it's been up 10%. So are you seeing -- have you seen an increase in realization on a Y-o-Y basis in the e-commerce business?

So if you were talking about versus last quarter, which is June '25, we do not see any significant increase in the yield because our GPA cycle is typically during the year and any change in the yield would be a function of more of customer or lane mix than the price increase.

So what I meant was last year September quarter?

Okay. Last year September quarter, the -- again, there would have be a GPA that would have been done in most of the customers. However, depending on the customer mix, the number may or may not show the same type of increase. So effectively, I don't see a very big increase in the realization, though we would have done the GPI for the customer, the customer mix. So if there are a smaller trade lane or a lower-priced customer grows faster, then the overall yield may not show an increase at the product level.

We'll take a couple of questions from the chat here. Also one question is on the GST cut impact. So have we seen any visible improvement in the volume of cargo after the GST cut? And do we see some really material improvement coming in 3Q because of that?

So we did see some uptick in the last 10 days of September. However, difficult to segregate whether it was on account of GST or it was on account of peak on account of the festive season coming in the early October as such. But yes, we did see an increase.

Okay. And also on the aircraft utilization. So at this stage, what would the utilization levels be of the aircraft capacity which we are having, including the old and the new ones?

So in terms of capacity, it is also a function of how many hours you fly. So -- and that is where -- I think last time also, there was a question with respect to the capacity quoted in the annual report remains same. So what we -- the capacity has been 500-plus tonnes, and that remains in the high -- I mean, it has increased, but it is still between 500 and 600 as such. So it's a function of how many sectors and how many hours you fly the aircraft. So even after adding those 2 aircraft, we have continued to show 500 plus because it would have gone from 500 to 560 tonnes per day. But it's not a physical capacity of the aircraft, but how much do you fly.

We'll take one question from Mr. Achal.

Sorry, I just got a little bit perplexed with this. You said B2B, B2C is 70-30. Growth in B2C was 18% and B2B was 2.5%. These are revenue growth number or volume growth number, sir?

Revenue.

So if I do a rough math, I get a blended revenue growth of about 13%...

Blended revenue growth -- this is for the quarter.

For the quarter. So 18% into 70% and 2.5% into 30%.

Can do the math again, the revenue for B2C has gone up by 17.9% and 2.5% is the growth in B2B revenue and the blended is 6.6%.

Okay. My bad, actually, I mixed it up. Okay. Sorry. Sir, second question I had was with respect to the price. If you were to give us some indication in terms of for the same per kg shipment, how much would be air and how much would be surface typically for any particular leg or sector, if you could quantify?

It will be actually very subjective for the given weight break. So if you send a small shipment, then the RPK will be very, very high it will look like because over there, the shipment is -- the service element of the cost goes up. It will not be appropriate to quote any number but the variation across weight break and across the sector will be very significant.

Right. No, I'm checking from the customer perspective, if he has to decide between -- whether he wants to do air or a surface movement, right, what would be the cost difference from their perspective?

So for a customer, the shipment of 20 kilos when it is sent on air, it may cost 5x higher than when it is sent on ground.

Okay. Understood. But as you said, with the improvement in the infrastructure, whether it is e-way bills or GST or road infrastructure, et cetera, more and more cargo is being moved on road. So there is a yield pressure, but the cost is also low, but the percentage margin is similar. Have I understood right, sir?

Percentage of margin is similar. And yes, as the customers improve their own infrastructure or their ability to forecast, the need for utilizing a costly mode of transport will be less. So we don't move as such, I would say, cargo on air, it's more of air shipments which are more time critical than freight critical.

Got it. Understood. And in terms of the competition, are you seeing further intensity actually increasing with respect to air or things are as they were what they were, say, a year back on the air front?

We don't see a big change over there. We do have an advantage of having our own fleet. So we have a control on what we carry and how fast -- I mean, we can carry it consistently without worrying about getting offloaded. So from that point of view, there is a very significant advantage that adds to our credibility. And that kind of structure remains in the industry. So I don't see a big change.

Thanks so much. So we are almost at the end of the session. So I'll just hand over the call to the management for any closing comments.

No, nothing specific from our end. So if any of the investors would like to know any further details or clarifications, they are always welcome to approach Sagar or me, and we'll get back to you.

Thank you.

Thank you, Alok, for setting up this call, and thank you all of you. And Mr. Vipul, you can call me back if there is anything.

Thank you.

Okay. Thank you.