Delhivery's net loss more than halved to Rs 103 crore, while revenue grew 8 percent to Rs 1,941.7 crore in the September quarter of the current financial year at a time when growth in the e-commerce sector, which is the logistics company’s primary customer base, slowed amid higher inflation and fund crunch.
Delhivery reported a loss of Rs 254 crore and revenue of Rs 1,796 crore in the same quarter of the previous year.
"We are pleased with H1 operating and financial performance, in particular the reduction in receivables by around 12 days, ahead of our Q1 guidance,"said Sahil Barua, MD & CEO of Delhivery.
The second half of the current financial year is also in line with company expectations.
"H2 has begun as per our expectations...Volume levels at our mega-facilities have also been consistently high and our Tauru gateway recorded throughput beyond our original design expectations, which bodes well for our newer automated gateways at Bhiwandi and Bengaluru,” Barua added.
Express Parcel shipment volumes grew 12 percent year-on-year (YoY) from 161 million in Q2FY23 to 181 million in Q2FY24, despite last year’s volume getting a boost from early part of the festive season sales falling in Q2.
Similarly, revenue from Express Parcel services grew 8 percent YoY to Rs. 1,210 crore in Q2 FY24 from Rs. 1,125 crore in Q2FY23.
Shares of the logistics company closed at Rs 402.25 apiece on November 3 on the BSE, 17 percent below the IPO price of Rs 487 a share. The logistics unicorn went gone public in May 2022 amid a choppy market for tech stocks.
Management rejig
On November 4, Delhivery also informed the exchanges that Pooja Gupta,
Chief People Officer (CPO), a key management Personnel (KMP) and Uday Sharma, Head of Business Development, Senior Management Personnel (SMP) will be departing the company in January.
While Gupta wants to pursue other interests, Sharma wants to pursue opportunities outside the company.
Suraj Saharan, co-founder of Delhivery, will take up additional responsibility and be the new (CPO) replacing Gupta. Similarly, Varun Bakshi, head of investor relations, will transition into a new role and be the Head of Business Development after Sharma quits.
Stake increase in Falcon Autotech
Delhivery has also increased its stake in Falcon Autotech Private
Limited by another 4.75 percent, in a related party transaction. After the acquisition, Delhivery will own 39.33 percent of Falcon Autotech.
It paid around Rs 52 crore for the additional stake, filings showed.
Through the acquisition Delhivery aims to integrate its warehousing business, leveraging Falcon Autotech's expertise in designs, manufacturing and supply chain in India and other markets like Dubai and Australia.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
