Delhivery Q3 Results: Loss Widens 55% YoY To INR 196 Cr, Operating Revenue Falls 8%

Gurugram-based logistics startup Delhivery’s consolidated net loss surged 54.6% to INR 195.6 Cr during the third quarter of the financial year 2022-23 (FY23) from INR 126.5 Cr in the year-ago quarter. 

However, net loss declined 23% on a quarter-on-quarter basis from INR 254 Cr in Q2 FY23.

Revenue from operations declined 8% year-on-year (YoY) to INR 1,823.8 Cr during the quarter under review. Operating revenue stood at INR 1,995 Cr in the December quarter of 2021, while it stood at INR 1,796 Cr in the September quarter of 2022.

Delhivery’s revenue from express parcel services stood at INR 1,200 Cr in Q3 FY23, while its parcel volumes stood at 170 Mn shipments. Revenue of part truckload (PTL) services stood at INR 277 Cr during the quarter under review. 

Total income, including other income, stood at INR 1,918.1 Cr in Q3 of FY23, a 5% drop from INR 2,019.2 Cr in the year-ago period. 

The startup generated revenue of INR 1,820.9 Cr from India, almost 99.8% of its total sales. 

Total expenses declined 1.3% to INR 2,125.7 Cr from INR 2,155 Cr in the corresponding quarter last year. Freight, handling and servicing cost accounted for a majority of the expenses. In Q3 of FY23, Delhivery spent INR 1,409.4 Cr on freight, handling and servicing cost, around 66% of its total expenses. In the December quarter of FY22, the company had spent INR 1,452.9 Cr on the same. 

Employee benefit expenses rose 5.5% to INR 339.6 Cr from INR 321.9 Cr in Q3 FY22.

The company’s consolidated financial report included financials of six subsidiaries and two step-down subsidiaries. 

In a release, Delhivery said that its adjusted EBITDA margin improved 330 basis points to -3.7% in Q3 FY23 from -7% in Q2 FY23. However, it didn’t give the YoY comparison.

“This improvement was driven by a combination of factors. In line with Q2 FY23, the incremental gross margin in the express parcel and PTL businesses combined continued to be approximately 50% in Q3 FY23 as well. Additionally, improved capacity utilization in the network, ongoing cost optimization measures and continued focus on revenue quality & margin improvements across customer segments also contributed to improvement in adjusted EBITDA,” it added.

Founded in 2011 by Mohit Tandon, Sahil Barua, Bhavesh Manglani, Kapil Bharati, and Suraj Saharan, Delhivery provides a full suite of logistics services such as express parcel transportation, LTL and FTL freight, reverse logistics, cross-border, B2B & B2C warehousing, and technology services. At present, the startup serves over 26K customers including large & small e-commerce participants, SMEs, and other enterprises and brands.

The company released its financial results after market hours on Friday. Shares of Delhivery ended the session 0.63% lower at INR 315.75 on the BSE.