After A Profitable Q3, Delhivery Posts INR 69 Cr Loss In Q4 FY24

After reporting its maiden profitable quarter in Q3 of the financial year 2023-24 (FY24), logistics unicorn Delhivery once again slipped into losses in Q4. The company reported a consolidated net loss of INR 69 Cr in the March quarter, hurt by a decline in its express parcel and cross-border services.

Delhivery had posted a consolidated profit after tax (PAT) of INR 11.7 Cr in the prior quarter – Q3 FY24. However, its net loss declined year-on-year (YoY) from INR 159 Cr posted in Q4 FY23. 

The company’s operating revenue also fell on a quarter-on-quarter (QoQ) basis to INR 2,076 Cr in Q4 FY24 from INR 2,194.5 Cr in Q3.

On a YoY basis, Delhivery’s operating revenue jumped 12% from INR 1,860 Cr in Q4 FY23.

The company’s express parcel and cross-border service businesses witnessed some degrowth sequentially. While its express parcel revenue shrank 16% QoQ to INR 1,217 Cr, cross-border services revenue declined 21% QoQ to INR 31 Cr.

Speaking during the Q4 FY24 earnings call, Delhivery CEO and MD Sahil Barua said that the decline in express delivery was due to a fall in volume as compared to its peak quarter, Q3 FY24. 

The shipment volume in this segment fell to 176 Mn in Q4 FY24 from 201 Mn in the previous quarter.

Meanwhile, Barua attributed the decline in cross-border services revenue largely to the Chinese New Year.

However, Delhivery witnessed both YoY and QoQ growth across its other business segments. Part truckload (PTL) freight revenue grew 10% QoQ to INR 417 Cr and TL service revenue increased 14% to INR 174 Cr.

On the other hand, supply chain services revenue jumped 36% sequentially to INR 234 Cr in Q4 FY24, which Barua attributed to new contracts which went live in Q3 and a strong season for some of its core customers. 

Delhivert’s EBITDA declined during the reported quarter to INR 46 Cr. In the preceding December quarter, it reported an EBITDA of INR 109 Cr.

“Overall, in summary, I think despite headwinds in Q4 facing the ecommerce industry as a whole and a generally slow environment for PTL freight… we are satisfied with where the business stands,” said Barua.

The fiscal year 2024 was the first full year of Delhivery’s EBITDA profitability, which stood at INR 127 Cr. 

Meanwhile, its loss during the year narrowed 75% YoY to INR 249.2 Cr and operating revenue increased 13% YoY to INR 8,142 Cr.

Zooming Into Expenses

Delhivery spent INR 2,257 Cr in total during Q4 FY24, which declined 1.4% QoQ and increased 7% YoY.

Freight, Handling and Servicing Cost: The company’s spending in this bucket declined 3.4% sequentially to INR 1,518.7 Cr in Q4.

On a YoY basis, this was an increase from INR 1,371.5 Cr in Q4 FY23.

Employee Cost: Delhivery’s employee benefit expenses also declined marginally to INR 357.2 Cr in the reported quarter from INR 360 Cr in Q3 FY24.

On a YoY basis, the employee cost remained almost unchanged. 

During the Q4 earnings call, Delhivery announced that it will start its new mega facility in Bengaluru in FY25. 

Meanwhile, the company also said that its chief business officer (CBO) Sandeep Barasia tendered his resignation.

Ahead of its earnings announcement, shares of Delhivery ended Friday’s trading session 0.8% higher at INR 453.85 on the BSE.

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