Delhivery’s Loss Narrows 59% YoY To INR 102.9 Cr In Q2

Logistics unicorn Delhivery posted a net loss of INR 102.9 Cr in the September quarter (Q2) of the financial year 2023-24 (FY24), down 59.5% from INR 254.1 Cr reported in the corresponding period of the previous fiscal.

However, loss jumped 15% from INR 89.5 Cr Delhivery reported in the previous quarter – Q1 FY24.

The logistics major’s revenue from services increased both on a year-on-year (YoY) and a quarter-on-quarter (QoQ) basis to INR 1,941.7 Cr in Q2 FY24. 

This was an 8% rise from INR 1,796.1 Cr operating revenue generated in the year-ago quarter. In Q1 FY24, the startup’s operating revenue stood at INR 1,929.8 Cr.

Delhivery said its adjusted EBITDA loss reduced 90% YoY to INR 13 Cr in Q2 FY24. Meanwhile, this was also a reduction from INR 25 Cr adjusted EBITDA loss posted in the June quarter of the current fiscal.

The startup said that despite the delayed festive season sales this year, which fell in the September quarter of last year, its express parcel shipment volumes grew 12% YoY to 181 Mn in the quarter under review.

Delhivery’s revenue from express parcel services also grew 8% YoY to INR 1,210 Cr in Q2 FY24.

Meanwhile, the company’s part truckload (PTL) volumes jumped 22% YoY to 348K tonnes in the reported quarter, helping the company generate INR 373 Cr in revenue from this vertical, up 28% YoY.

Its truckload business saw a robust YoY and QoQ revenue growth of 46% and 15%, respectively, said Delhivery.

Sahil Barua, MD and CEO of Delhivery, said the company’s overall operating and financial performance in H1 was satisfactory.

“Service quality remained robust throughout H1 and network utilisation remained stable even as we expanded capacity in Q2, setting us up well for H2,” said Barua.

In fact, he said Delhivery’s H2 began with express volumes of over 70 Mn and daily PTL volumes beginning to touch 4,700-5,000 MT levels in October. 

“Volume levels at our mega-facilities have also been consistently high and our Tauru gateway recorded throughput beyond our original design expectations, which bodes well for our newer automated gateways at Bhiwandi and Bangalore,” Barua added. 

Zooming Into The Expenses 

Delhivery’s sequential rise in loss was largely driven by increase in expenses in Q2 FY24, which grew to INR 2,148.2 Cr from INR 2,129.7 Cr in Q1.

On a YoY basis, expenses declined 0.45% from INR 2,157.8 Cr.

However, its freight, handling and servicing cost grew both on QoQ and YoY basis to INR 1,442.1 Cr in the quarter under review. In Q2 FY23, the cost stood at INR 1,435.8 Cr.

On the other hand, employee benefits expenses increased almost 4% YoY to INR 366.3 Cr in Q2 FY24.

We must note that along with its September quarter earnings, Delhivery also announced a few leadership appointments on Saturday (November 4).

Cofounder of Delhivery, Suraj Saharan would take over as the chief people officer, while Varun Bakshi would take over as the head of business development and part truckload freight business effective January 9, 2024. 

Vivek Pabari, SVP of corporate finance, will also take up additional responsibilities of investor relations & treasury, the company said.

Shares of Delhivery ended Friday’s trading session marginally higher at INR 402.25 on the BSE.