Delhivery Revenue: Delhivery Q3 revenue falls 8% to Rs 1,823 crore

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Ecommerce focussed logistics company Delhivery‘s revenue fell 8% year on year to Rs 1,823 crore for the quarter ended December 31, regulatory filings with the BSE showed.

Losses jumped 54% to Rs 195 crore from Rs 126 crore in the corresponding period last year.

Expenses were flat marginally at Rs 2,125 crore compared to Rs 2,155 crore for the same quarter in FY21.

The company said on October 20 that high inflation would dent consumer spending and result in moderate growth in shipments for the rest of the financial year.

The comments resulted in its share price dropping below the issue price of Rs 487 for the first time. Shares have yet to recover from that level and closed 0.6% lower at Rs 315.75 on the BSE Friday.

The fall in revenue came as the festive season sale started early in 2022, which resulted in a surge in volumes towards the end of the previous quarter for ecommerce companies.

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Sequentially, however, overall shipments and revenue increased.Revenue from express parcel services, which is its core ecommerce delivery business, grew 7% quarter on quarter to Rs 1,200 crore in the third quarter.

“The express parcel volumes grew by 9 million shipments sequentially from 161 million shipments in Q2 FY23 to 170 million shipments in Q3 FY23 despite festive season sales starting in Q2 this year, unlike FY22,” the company said in a statement.

Revenue from operations rose 1% sequentially from Rs 1,796 crore in the second quarter.

Adjusted Ebitda loss narrowed by 47% to Rs 67 crore from Rs 125 crore in the second quarter.

“Improved capacity utilisation in the network, ongoing cost optimisation measures and continued focus on revenue quality and margin improvements across customer segments also contributed to improvement in Adjusted Ebitda,” the company said.

Revenue from its part truckload (PTL) services stood at Rs 277 crore compared to Rs 293 crore in the second quarter.

The company said the PTL business demonstrated robust volumes and consistently high service levels through November, December and January.

“Leading indicators of our business – service precision, network speed and quality parameters all continue to show positive traction. We have had a good end to the year and this momentum has carried into 2023. We are confident of continued improvement in our transportation business, especially PTL, and overall profitability metrics”, said Sahil Barua, managing director and CEO of Delhivery.

Delhivery reported a net loss of Rs 399 crore for the quarter ended June 30, a more than three-fold increase from the previous year.

This was due to challenges in integrating its PTL business with its acquisition of Spoton and the exit of Singapore-based ecommerce company Shopee creating excess capacity in its operations, leading to higher costs.

The company has said in its financial statements that the Spoton acquisition continues to affect its overall margins and volumes.

Delhivery said while the customer and technology integration phases were completed without issues, the operational integration took longer than expected to stabilize.

“During the period, the management decided to retain higher operating capacities in terms of manpower and linehaul fleet to ensure stable services. As a result, overall volumes and margins were impacted during the nine months period ended December 31, 2022,” the company said.

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