Indian supply chain services provider Delhivery reported a net loss of INR 102.9 Cr ($1.37m) in Q2 FY24, a decrease of 59.5% YoY and an increase of 15% QoQ. Despite the delayed festive season sales, the company saw revenue growth in several areas. Express parcel shipment volumes and revenue grew by 12% and 8% YoY respectively, reaching over 70 million daily volumes. Meanwhile, Part Truck Load (PTL) volumes rose by 22% YoY, generating INR 373 Cr ($4.96m) in revenue, a 28% YoY increase.
The company's truckload business also experienced robust growth with revenues increasing by 46% YoY and 15% QoQ. The adjusted EBITDA loss reduced significantly by 90% YoY to INR 13 Cr ($0.17m), although it increased sequentially from INR 25 Cr ($0.33m). CEO Sahil Barua described the H1 performance as satisfactory and highlighted high volume levels at their automated gateways and mega-facilities.
However, expenses in Q2 FY24 increased to INR 2,148.2 Cr ($28.54m) from INR 2,129.7 Cr ($28.31m) in Q1 FY24, with employee benefits expenses rising nearly 4% YoY to INR 366.3 Cr ($4.87m). Freight, handling, and servicing costs also grew both QoQ and YoY to INR 1,442.1 Cr ($19.16m).
Delhivery has also announced changes in its leadership team effective from January 9, 2024. Suraj Saharan will assume the role of chief people officer, while Varun Bakshi will head business development and the PTL freight business. Vivek Pabari is set to handle additional investor relations & treasury responsibilities. This follows the departures of Pooja Gupta and Uday Sharma.
The company also increased its stake in Falcon Autotech to 39.33% by investing an additional Rs 52 crore ($0.69m), aiming to enhance its warehousing business. Despite these positive developments, Delhivery's shares ended at INR 402.25 ($5.34) on the BSE, trading below their IPO price.
InvestingPro Insights
Delhivery's financial health is marked by a couple of key strengths, as indicated by InvestingPro Tips. Firstly, the company holds more cash than debt on its balance sheet, a sign of financial stability and capacity to weather potential downturns. Secondly, analysts anticipate sales growth for Delhivery in the current year, which aligns with the revenue increase seen in several areas of the business.
The InvestingPro Data also provides some insights into Delhivery's recent performance. Over the last six months, the company's total return on price was a solid 10.48%, and year-to-date, it stood at an impressive 17.05%. This suggests that despite the net loss reported in Q2 FY24, the company has been delivering a robust return for its investors.
It's worth noting that Delhivery is a prominent player in the Air Freight & Logistics industry, and while it's not been profitable over the last twelve months, analysts predict the company will be profitable this year. This could be a crucial turning point for the company and potential investors.
For more in-depth analysis and tips, InvestingPro offers additional insights into Delhivery and other companies. Currently, there are three more InvestingPro Tips available for Delhivery, which could provide further valuable context for understanding the company's financial and industry position.
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