Delhivery Posts INR 10 Cr Profit In Q2

Logistics major Delhivery posted a consolidated net profit of INR 10.2 Cr in the September quarter of the financial year 2024-25 (Q2 FY25) as against a loss of INR 102.9 Cr in the year-ago quarter.

This was the second consecutive profitable quarter for the company, which posted a profit of INR 54.3 Cr in the preceding June quarter. It is pertinent to mention that after turning profitable in Q3 FY24, Delhivery slipped into the red in the fourth quarter of the last fiscal year.

Delhivery saw a healthy growth in its Express Parcel and Part Truckload revenue, which rose 7% and 27% year-on-year (YoY), respectively, in the September 2024 quarter.

Revenue from services jumped 13% to INR 2,189.7 Cr in the second quarter of the ongoing financial year from INR 1,941.7 Cr in the year-ago period.

Including other income of INR 119.6 Cr, total revenue jumped 8.1% to INR 2,209.3 Cr in the quarter ended September 30, 2024 from INR 2,042.9 Cr in the corresponding period last year.

Further, Delhivery reported an EBITDA of INR 57 Cr during the quarter under review as against an EBITDA loss of INR 16 Cr in Q2 FY24.

“The stable volume performance during Q2 FY25 along with the planned seasonal capacity additions we undertook towards the end of the quarter set us up well for the festive season. We saw a significant increase in the Express volumes in October with daily average volumes being about 25% higher than the pre-festive sale period,” said Sahil Barua, managing director and CEO of Delhivery.

The company’s cash and cash equivalents stood at INR 5,488 Cr as of September 30, 2024.

Segment Revenue

Express Parcel revenue grew 7% to INR 1,298 Cr in the quarter ended September 2024 from INR 1,210 Cr in the year-ago quarter, while express parcel shipments increased 3% YoY to 185 Mn during the period.

Part Truckload revenue grew 27% to INR 474 Cr in Q2 FY25 from INR 373 Cr in the same quarter last year. Sequentially, it rose 9% from INR 435 Cr in Q1 FY25.

Delhivery earned a revenue of INR 197 Cr from its supply chain services in the second quarter of FY25, a significant 21% increase from INR 164 Cr in the corresponding quarter last year. However, revenue from this segment declined 24% on a sequential basis from INR 259 Cr in Q1 FY25.

Truckload service revenue rose 5% YoY and 2% QoQ to INR 158 Cr in the quarter ended September 30, 2024, while revenue from cross border services jumped 43% YoY and 38% QoQ  to INR 59 Cr in Q2 FY25.

Zooming Into Expenses

In line with the increase in revenue, total expenses increased 6.8% to INR 2,294.3 Cr during the quarter under review from INR 2,148.2 Cr in the September quarter last year.

Freight, Handling And Servicing Costs: Being a logistics company, freight, handling and servicing costs emerged as the biggest expense head for Delhivery, rising 13.5% YoY and 3.7% QoQ to INR 1,638.1 Cr in Q2 FY25.

Employee Benefit Expenses: Delhivery managed to trim its employee costs by 4.7% to INR 349.3 Cr during the quarter under review from INR 366.7 Cr in the year-ago quarter. Of this, it spent INR 33 Cr on share based payments (ESOPs) in Q2 FY25. 

Other Expenses: The company’s spending under this head was almost unchanged and stood at INR 145.04 Cr as against INR 148.5 Cr in the year-ago period.

In September, Delhivery teamed up with Teamglobal Logistics to offer ocean freight services, focused on both inbound and outbound logistics. 

As part of the deal, Delhivery would offer its in-land Part Truckload (PTL) shipping solutions to Teamglobal within India, spanning over 18,700 pin codes.

The same month, the logistics company also received a goods and services tax (GST) demand notice amounting to INR 5.5 Lakh from Karnataka authorities.

Ahead of its Q2 FY25 earnings announcement, shares of Delhivery ended Thursday’s trading session 0.05% higher at INR 330.35 apiece on the BSE.