Logistics giant Delhivery on Friday (November 11) reported narrowing its losses to INR 254.1 Cr in the second quarter (Q2) of the financial year 2022-23 (FY23), down nearly 60% from INR 635 Cr in Q2 FY22.
The startup’s total income surged 23% to INR 1,883.3 Cr in Q2 FY23, up from INR 1,528.1 Cr during the corresponding fiscal year. This was largely on account of the festive season, as ecommerce and gift shipments grew manifold during the quarter.
Key highlights of the Q2 FY23 results:
- Revenue from express parcel services grew 17% year-on-year (YoY) to INR 1,125 Cr
- Delhivery’s revenue from partial truck-load (PTL) services stood at INR 293 Cr
- On similar lines, Truckload services nearly doubled YoY in revenue to INR 103 Cr
- Revenue from supply chain services grew 62% YoY to INR 180 Cr
- Border services surged 21% YoY in revenue to INR 96 Cr
Total expenses remained steady at INR 2,157.7 Cr during the quarter under review, down from INR 2,161.5 Cr in Q2 FY22. Freight, handling and servicing charges accounted for a major portion of the expenditure at INR 1,435.8 Cr, growing 24% year-on-year (YoY).
Delhivery also slashed its employee benefit costs to INR 352.8 Cr in Q2 FY23, down 20% YoY from INR 444.2 Cr.
“With the integration of Spoton behind us we remain optimistic about the future. Our structural cost and network advantages coupled with investments in technology, automation and our extremely strong balance sheet position us to strengthen our market position across segments in the INR 15 Lakh Cr Indian logistics industry,” said Delhivery’s managing director and chief executive officer Sahil Barua.
Spoton is a Bengaluru-based B2B logistics startup that Delhivery acquired late last year.The company also reported an adjusted EBITDA (earnings before interest, taxes, depreciation and amortisation) loss of INR 125 Cr during the quarter.
Overall, shipping volumes grew by 80% during the festive season. Express parcel volumes surged 19% on a yearly basis to 161 Mn shipments during the quarter. On similar lines, PTL services saw a total freight volume of 2.86 Lakh tonnes in Q2FY23, up from 2.39 lakh tonnes in Q1FY23.
Delhivery made its stock market debut in May earlier this year. The logistics major listed at INR 493 per share on the BSE, against an issue price of INR 487.
The financial results were declared late after trading hours on November 11. At the end of intraday trading, the shares of Delhivery closed 1.01% higher at INR 379.25 on the BSE.