Delhivery loss widens to Rs 399 crore in June quarter

Delhivery on Tuesday posted a wider net loss of Rs 399 crore for the three months ended June 30. This was the logistics company’s first earnings announcement after it got listed on the exchanges on May 25.

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Delhivery had reported a loss of Rs 130 crore in the June quarter last year and narrowed it down to Rs 120 crore in the March quarter this year, according to a filing on the BSE.

Revenue from operations came in at Rs 1,795 crore in the June quarter, up 32% on a year-no-year basis while declining 16% sequentially from the March quarter. The drop in sales at e-commerce companies owing to rising inflation impacted the company revenues as the channel is the highest contributor.

Sandeep Barasia, chief business officer and executive director, Delhivery, said: “We continue to see strong demand for our integrated supply chain solutions across industry verticals, including auto, industrial goods, chemicals, and consumer durables.”

Overall, Delhivery incurred an adjusted Ebitda loss of Rs 217 crore in Q1FY23 against adjusted Ebitda loss of Rs 58 crore, according to its proforma numbers. This the company attributed to the integration phase with Spoton as a result of inherent seasonality in the partial truckload business, slightly slower than planned phasing of customer restarts and retention of capacity to maintain service quality and in anticipation of seconds half volumes.

Freight handling and servicing costs at Rs 1,453 crore formed nearly 66% of the expenses and increased from 72.5% to 83% as a percentage of revenue on a sequential basis.

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Delhivery came out with its IPO on May 11 through which it garnered Rs 5,235 crore, compared with the Rs 7,460-crore figure it had planned to raise. Its shares rose 10% to Rs 537 against the issue price on its listing day (May 25).

“We continue to be extremely well-capitalised, with cash and investments of over Rs 6,000 crore as of June 30, 2022, and will continue to invest in building infrastructure, technology, and operational capacity to deliver high-quality service to our customers,” Barasia said.