Delhivery records net loss of Rs 399 cr in Q1 FY23

Delhivery reported a consolidated net loss of Rs 399 crore in Q1 FY23 as against a net loss of Rs 130 crore recorded in Q1 FY22.

Revenue from contracts with customers rose by 32.5% YoY to Rs 1,746 crore during the quarter.

Revenue from services in Q1 FY23 increased by 30% to Rs 1,746 crore from Rs 1,344 crore recorded in Q1 FY22.

Revenue from Express Parcel services grew 34% YoY to Rs 1,051 crore in Q1 FY23 on the back of robust shipment growth and new client acquisitions. Express Parcel volumes grew 50% YoY from 102 million shipments in Q1 FY22 to 152 million shipments in Q1 FY23.

Revenue from Part Truckload Services were lower by 16% YoY at Rs 259 crore in Q1 FY23, from Rs 307 crore (proforma) in Q1 FY22. The company undertook the final phase of integration of Spoton, a complementary PTL business it acquired in FY22, in Q1 FY23, one of the largest integrations in the Indian logistics industry, temporarily impacting volumes.

Owing to phased restarting of key customer accounts into the newly integrated network, PTL freight volumes for Q1 FY23 stood at 239,000 tonnes as against 279,000 tonnes (proforma) in Q1 FY22.

The company's other service lines continued to demonstrate robust growth in QIFY23, with over 100% YoY growth in the combined revenues of supply chain services (SCS), truckload services (TL) and cross border services (excluding COVID-19 traded goods revenue).

Truckload service revenue grew 121% in Q1 FY23 over Q1 FY22 and the company added over 1,000 new fleet partners to its Orion marketplace. Cross border services grew 53% YoY in Q1 FY23 as the company continued to strengthen its market position through its partnership with global leader FedEx Express, which is also a minority shareholder.

The company incurred an Adjusted EBITDA loss of Rs 217 crore in Q1 FY23 as compared with an adjusted EBITDA loss of Rs 58 crore (proforma) in Q1 FY22.

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.

"Our EBITDA margins were temporarily affected through the integration phase with Spoton as a result of inherent seasonality in the PTL business, slightly slower than planned phasing of customer restarts and retention of capacity to maintain service quality and in anticipation of H2 volumes, said Abhik Mitra, chief customer experience officer, Delhivery and CEO of Spoton.

Ajith Pai, chief operating officer, Delhivery, said: "H1 is the period during which we commission new capacity in preparation for seasonally higher volumes in H2. As PTL Freight volumes continue to recover and express parcel shipments continue to grow, we expect capacity utilization to improve.

Sahil Barua, managing director and chief executive officer, Delhivery, stated: We continue to be extremely well-capitalized, with cash and investments of over Rs. 6,000 Cr 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.

Delhivery is India's largest and fastest growing fully integrated logistics services provider. With its nationwide network covering over 18,400 pin codes, the company provides a full suite of logistics services such as express parcel transportation, PTL freight, TL freight, cross-border, supply chain, and technology services.

The scrip rose 1.23% to end at Rs 642.80 on the BSE yesterday.

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