BlackBuck Posts Loss Of INR 308 Cr In Q2 FY25

Logistics company BlackBuck slipped into the red in the September quarter of fiscal year 2024-25 (Q2 FY25) due to an exceptional loss. In its first financial disclosure post listing, the Flipkart-backed company reported a net loss of INR 308.38 Cr from continuing operations, about 7.8X from INR 39.67 Cr loss it registered in the year-ago quarter. 

The company incurred a share based payment expense of INR 320.74 Cr during the quarter under review. Without this exceptional item, it would have posted a profit of over INR 12 Cr from its continuing operations. 

It is pertinent to mention that the company sold its corporate freight business during the quarter under review. It made a profit of INR 38.92 Cr from the discontinued operations, including the gain on sale of the business.

BlackBuck had posted a net profit of INR 32.38 Cr in the June quarter from its continuing operations. 

Despite the increase in loss, BlackBuck’s adjusted EBITDA jumped 29.74% year-on-year (YoY) to INR 24.64 Cr in Q2 FY25.

Revenue from operations rose 56% to INR 98.77 Cr in Q2 FY25 from INR 63.37 Cr in the year-ago quarter. Sequentially, revenue increased 7% from INR 92.16 Cr.

The company said that its transacting customers stood at 6.99 Lakh at the end of the quarter, a 22.32% YoY increase. It also claimed to have facilitated gross transaction value (GTV) payments of INR 5,269 Cr.  

Further, BlackBuck also claimed that its users spent an average of 41 minutes on its app. This included the time spent on the app by truckers looking to track their trucks and customers looking to find logistics partners for their freight movement on the road. 

“The operational metrics continued to grow at a healthy pace, demonstrating the strong value proposition of the platform. On a YoY basis: 22% growth in monthly transacting truck operators, 32% growth in Payments GTV, and growth of 8% in time spent by users on the app,” the company said in an investor presentation. 

BlackBuck got listed on the bourses on November 22. On the BSE, the stock listed at INR 279.05, a premium of 2.21% to the issue price. Since listing, the shares of the company have zoomed 51.70%. 

At the time of listing, the company claimed to have around 27.5% of the country’s truck operators on its platform. Without giving a number, BlackBuck founder and CMD Rajesh Yabaji said in a post-earnings call that it is adding 0.4% to 0.5% market share every month.

The company expects to report profits in its upcoming quarters. Meanwhile, it also expects the central government’s recently introduced changes to the National Highways Fee (Determination of Rates and Collection) Rules, 2008 to aid its growth. 

In September, the ministry of road transport and highways said that vehicles that use the Global Navigation Satellite System (GNSS) will be able to travel toll free on highways for up to 20 kms and will be charged as the actual distance covered for above 20 kms.

“The ability to play in the new GNSS space is a 10X opportunity, far beyond any traditional change management-driven shift. GNSS-based tolling will create a billion-dollar market within the telematics industry, unlocking vast potential overnight,” Yabaji said during the investor call. 

Where Did BlackBuck Spend?

The company managed to cut its expenses by 15% to INR 91.78 Cr in the quarter ended September 2024 from INR 107.38 Cr in Q2 FY24.  

Employee Benefit Expenses: Spending under the head declined 33% to INR 39.57 Cr from INR 58.86 Cr in the year-ago quarter. 

ESOP Expenses: The company’s employee shared based payment expenses stood at INR 4.14 Cr, down 83% from INR 24.34 Cr in the year-ago quarter. 

Other Expenses: The startup’s expenses under this head stood at INR 44.17 Cr, up 15% from INR 38.26 Cr in Q2 FY24. 

Shares of BlackBuck ended Friday’s trading session 0.08% lower at INR 423.35 on the BSE.

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