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Delhivery stock drops 14% on inflation concerns, flat festive shipments

Shipment volumes in its supply chain services and truckload businesses declined in September quarter; growth to remain moderate for rest of FY23, says company

October 20, 2022 / 04:01 PM IST

Delhivery’s stock dropped 14 percent to Rs 479 apiece on the BSE on October 20 after the logistics company said it expects moderate growth of shipment volumes for the rest of FY23 due to high inflation, average user spends, and total active shoppers remaining flat or declining during the ongoing festive season.

With Delhivery being one of the major players in third-party e-commerce logistics, the company's guidance on flat festive sales and moderate growth in FY23 is expected to have an impact on the outlook for the broader e-commerce segment.

In a letter to shareholders filed with the exchanges on its performance in the September quarter, Delhivery said that shipment volumes in its supply chain services (SCS) and truckload (TL) businesses declined sequentially, owing to seasonality in customers’ businesses.

The company's stock is now trading below its IPO issue price of Rs 487 apiece.