Delhivery Consolidated Loss Widens To Rs 159 Crore In March-quarter

Delhivery, on Friday, reported a widening in consolidated net loss at Rs 159 crore for the March quarter. The company reported a net loss of Rs 120 crore a year ago.

The company’s consolidated total income from operation fell by 9 per cent to Rs 1,934 crore for the March quarter as compared to Rs 2,127 crore in the year-ago period.

In a regulatory filing, the company said, “Adjusted EBITDA margin improved to 0.3 per cent in Q4FY23, against -3.7 per cent in Q3FY23 and incremental gross margin in the core express parcel and PTL businesses continued to be above 50 per cent.”

“This margin improvement was driven by a combination of factors including continued improvement in network capacity utilization, technology-driven cost optimisation in fleet operations and improvement in revenue and margin quality across customer segments,” the company said in BSE filing.

“The company has also 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 statement said.

The company has also reported growth in Express Parcel volumes by 10 million shipments QoQ to 180 million shipments in Q4 FY23 from 170 million shipments in Q3 FY23 despite Q3 being a seasonally strong quarter with festive sales.

Corresponding revenue stood at Rs 1,177 crore in Q4 FY23 against Rs 1,200 crore in Q3FY23. Revenue from PTL services grew 19 per cent QoQ to Rs 328 crore in Q4 FY23 from Rs 277 crore in Q3FY23 due to increased volumes, gained through consistently high service quality.

PTL volumes grew 23% QoQ to 318K tonnes in Q4 FY23 from 258K tonnes in Q3 FY23.

Truckload and Supply Chain Services businesses saw a robust QoQ revenue growth of 8 per cent and 6 per cent respectively while the Cross-Border services business saw a revenue decline of approximately Rs 9 crore, despite robust volumes, on the back of falling global yields in both air and ocean freight and volume impact of the Chinese New Year holidays.

“Critical leading indicators like service precision, network speed, and delivery quality parameters are at all-time high levels and are driving greater customer confidence and share of wallet growth. The momentum built up in Express and PTL in Q3 has carried into Q4 and FY24 as well. 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,” Sahil Barua, managing director & chief executive officer, Delhivery.