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Delhivery, India’s largest fully-integrated logistics services provider, on Saturday reported a sharp decline of 51 per cent in consolidated net loss at Rs 103 crore for the quarter ended September 2023 (Q2FY24), compared to Rs 254 crore in the corresponding period last year. The revenue from operations in the second quarter of current fiscal stood at Rs 1,914 crore, registering a growth of 8 per cent, compared to Rs 1,796 crore in the year-ago period.

  • Net loss narrows 59% to Rs 103 crore
  • Revenue up 8% YoY
  • Express parcel shipment volumes grew 12% to 18 crore in the quarter-under-review
  • Gross profit margin improves 40 bps to 10.7%
  • EBITDA margins improve 100 bps to 2%

Key takeaways

  • Delhivery’s Q2 results were better than expected, with the company narrowing its net loss by 59% and reporting revenue growth of 8%.
  • The company’s express parcel shipment volumes grew 12%, demonstrating continued strong demand for its services.
  • Delhivery’s gross and EBITDA margins improved, indicating better cost management and operational efficiency.

Overall, Delhivery’s Q2 results were positive and show that the company is on the right track to profitability.

Management commentary

  • Sahil Barua, CEO and co-founder of Delhivery, said, “We are pleased to report a strong Q2 with revenue growth of 8% and a significant reduction in our net loss. This performance is a testament to the resilience of our business model and our focus on operational efficiency.”
  • Barua added, “We are confident that we are on the right track to profitability and are committed to delivering sustainable value to our shareholders.”

Analysts’ views

  • Analysts are generally positive on Delhivery’s Q2 results, with many reiterating their buy ratings on the stock.
  • Analysts believe that the company’s strong performance is driven by its focus on operational efficiency and its exposure to the growing e-commerce market in India.

Future outlook

  • Delhivery expects revenue to grow by 15-20% in FY24.
  • The company is also targeting EBITDA profitability in FY24.

Overall, Delhivery’s outlook is positive. The company is well-positioned to benefit from the growth of the e-commerce market in India and is expected to achieve profitability in FY24.

Stock price movement

  • Delhivery shares closed at Rs 402.25 on the BSE on Friday, November 3, 2023.
  • The stock is down 17% from its IPO price of Rs 487 per share.

Disclaimer

The information contained herein is for informational purposes only and does not constitute investment advice. Please consult with a qualified financial advisor before making any investment decisions.tunesharemore_vert

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