Delhivery Q4 results: Delhivery Q4 Results: Loss widens to Rs 159 crore; revenue falls 10%

Logistics firm Delhivery on Friday reported that its consolidated net loss widened to Rs 159 crore during the March quarter. The company had reported a loss of Rs 120 crore in the March quarter of last year.

Revenue from operations fell 10% to Rs 1,860 crore for the quarter under review. It was Rs 2072 crore in the same quarter a year ago.

Adjusted EBITDA for the quatrter turned positive to Rs 6 crore in the fourth quarter, compared with a loss of Rs 67 crore in the third quarter.

Meanwhile, adjusted EBITDA margin improved to 0.3% and incremental gross margin in the core express parcel and PTL business continued to be above 50%.

The margin improvement was driven by a combination of factors including continued improvement in network capacity utilization, technology-driven cost optimization in fleet operations and improvement in revenue and margin quality across customer segments.

Delhivery said that it has opened up its internal and third-party demand to brokers and fleet owners through its Full Truckload Exchange (Orion) leading to pricing benefits in long-haul and short-haul trucking through competitive bidding and greater vehicle utilization for its partners.

The company has reported growth in Express Parcel volumes by 10 million shipments QoQ to 180 million shipments in Q4 FY23. The segment’s revenue stood at Rs 1,177 crores in fourth quarter as against Rs 1,200 crore in the third quarter. Revenue from PTL services grew 19% QoQ to Rs 328 crore for the quarter under review due to increased volumes, gained through consistently high service quality.

Truckload and supply chain services businesses saw a QoQ revenue growth of 8% and 6% respectively while the cross-border services business saw a revenue decline of approximately Rs 9 crore.

“We were confident of continued improvement in the core Transportation business and overall profitability at the end of last quarter and are happy to report we have delivered both in this quarter as planned,” said Sahil Barua, MD and CEO, Delhivery.

“We have aggressive infrastructure and capability expansion plans in place and are confident of the strong start in April and H1 of May continuing through the year,” Barua said.

On Friday, Delhivery stock closed 1.79% lower at Rs 359.05 apiece on NSE.

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