Delhivery’s Q1 Loss Narrows 78% YoY To INR 89.5 Cr On Strong Growth Across Verticals

Logistics unicorn Delhivery reported almost a 78% decline in net loss at INR 89.5 Cr in the June quarter of the financial year 2023-24 (FY24) from INR 399.3 Cr reported in the last year’s quarter, helped by a strong growth momentum across truckload and supply chain services and controlled expenses.

On a quarter-on-quarter (QoQ) basis, Delhivery’s net loss narrowed 44% from 158.7 Cr. 

Revenue from services rose 11% to INR 1,929.8 Cr in Q1 FY24 from INR 1,745.7 Cr in Q1 FY23. 

The metric, which it also calls revenue from contracts with customers, grew 4% sequentially from INR 1,859.6 Cr.

Total revenue stood at INR 2,031.1 Cr in Q1 FY24 versus INR 1,794.5 Cr in the year-ago quarter.

Delhivery’s adjusted EBITDA loss reduced 89% YoY to INR 25 Cr in the quarter under review. While adjusted EBITDA margin improved to -1.3% from -12.5% in the year-ago quarter, it contracted on a QoQ basis from 0.3% in Q4 FY23.

In a statement, the startup said that its truckload and supply chain services businesses saw a robust QoQ revenue growth of 20% and 10%, respectively. 

“We have won important contracts in Q1 from marquee clients, like Havells, TATA Motors, Mamaearth, which we expect to reflect in subsequent quarters”, said Sahil Barua, MD and CEO of Delhivery.

In Q1 FY24, the company expanded capacity and network footprint in line with its growth expectations for H2 FY24, Barua added.

The startup said its express parcel shipment volume grew 19% YoY to 182 Mn in Q1 FY24. The volume grew by over 2 Mn shipments compared to the previous Q4 FY23 quarter, despite Q1 traditionally being a seasonally weak quarter. 

Delhivery’s revenue from express parcel services also grew 14% YoY to INR 1,202 Cr, while the revenue from part truckload (PTL) services surged 34% YoY to INR 347 Cr in Q1 FY24 from INR 259 Cr in the quarter under review due to increased volume. 

PTL volume jumped 44% to 343K tons in Q1 FY24 from 239K tons in the same period last year.

Delhivery’s total expenses declined 3.4% YoY to INR 2,129.7 Cr in Q1 FY24 and rose only 1% QoQ from INR 2,107.6 Cr.

The startup managed to cut its freight, handling, and servicing costs to INR 1,438 Cr in the quarter under review from INR 1,452.6 Cr in Q1 FY23. However, it grew 4.8% on a QoQ basis.

Delhivery’s employee benefit expenses grew around 0.9% YoY but declined 1.2% QoQ to INR 353.2 Cr in the June quarter of the current fiscal.

Along with its quarterly results, the company also announced the appointment of professor Anindya Ghose as an independent director. Ghose currently holds the position of Heinz Riehl Chair Professor of Technology and Marketing at New York University’s Leonard N. Stern School of Business. 

Delhivery’s shares ended Friday’s trading session almost 6% higher at INR 421.5 on the BSE. The company released the quarterly results after market hours.