Logistics company Delhivery posted a loss of INR 68.5 crore in the quarter ended 31 March 2024, down 57% from a loss of INR 159 crore in the corresponding period last year.

In Q4FY24, the company’s revenue increased to INR 2,076 crore, which was 12% higher than INR 1,860 crore recorded in the same quarter last year.

“FY24 has been a crucial year for us where we delivered consistent service levels, significantly improved profitability, completed a large portion of our planned long-term capital investments and achieved material working capital improvement,” said Sahil Barua, MD & Chief Executive Officer.

In the December quarter, Delhivery clocked a revenue of INR 2,194 crore and generated a surprise profit of INR 11.7 crore, its first ever since at least 2021.

On the revenue front, Delhivery reported revenue of INR 2,076 crore in Q4FY24, up 12% Y-o-Y from INR 1,860 crore. Ebitda climbed to INR 46 crore from INR 13 crore Y-o-Y, with margins at 2.2%, as gross margin expanded by 58bps.

Delhivery's revenue growth was driven by the partial truckload (PTL) and full truckload (FTL) segments (up 27% and 60% Y-o-Y, respectively) in Q4FY24. Despite Q4 being a seasonally weaker quarter for the PTL industry, Delhivery saw continued improvement in PTL volumes (up 21% Y-o-Y) on the back of improving service levels and strengthening the sales force in Tier 2+ cities.

The January-March period is generally slower than the October-December quarter because e-commerce companies would have just concluded their festive sale periods during which demand for services, like that of Delhivery, is heightened.

In fact, Barua while speaking to analysts after announcing the results in the December quarter, however, warned of “swings” in the future, which meant there are still chances the company will incur losses as it stabilises operations.

"Please don't use this quarter (Q3FY24) to model for the next six quarters. There are forces beyond Delhivery’s control,” Barua had told analysts about the December quarter’s results.

For the entire FY24, revenue from services stood at INR 8,142 crore in FY24, a growth of 13% from INR 7,224 crore recorded in FY23. Similarly, loss after tax narrowed to INR 249 crore in FY24 from INR 1,008 Cr in FY23.

Departure of the CBO

The company also informed the exchanges that its Executive Director and chief business officer, Sandeep Kumar Barasia, has resigned and July 1 will be his last working day. After over nine years with the company, Barasia is leaving for personal reasons.

"I am very grateful to have had the opportunity to participate in the journey of Delhivery as it went from a start-up to India’s largest logistics player, achieving several firsts in the industry. I am proud of what has been accomplished so far and am confident of the continued success of Delhivery in the future" Barasia said.

During his tenure, the company entered new business segments of Supply Chain Services, Truck Load, and Cross-Border logistics and significantly diversified its revenue base. He was also a key member who helped the company IPO.

"Sandeep has been instrumental in the growth and scale-up journey of Delhivery and has significantly contributed to making Delhivery the largest logistics player in India. On behalf of the entire Board, I want to thank Sandeep and wish him all the very best for the future," MD and CEO Barua said.

Delhivery’s shares closed 0.78% higher at INR 453.85 apiece on the BSE. Delhivery stock price dipped 3.2% to INR 439.25 apiece on the BSE on Saturday, May 18, during the special trading session, after the company slipped into losses again in the March quarter (Q4FY24).

At 10:00 AM, Delhivery stock price was at the day's low as against the benchmark S&P BSE Sensex's 0.02% gain.

Article Source – Reuters, Delhivery (Press Release)