Delhivery’s steady momentum in business continues

Delhivery reported revenue from services of Rs 1,930 crore in Q1 FY24, up 11% YoY from Rs 1,746 crore in Q1 FY23 and up 4% sequentially from Rs 1,860 crore in Q4 FY23. Adjusted EBITDA loss reduced by 89% YoY to Rs 25 crore in Q1 FY24 compared to Rs 217 crore in Q1 FY23. Loss after tax in the same period narrowed by 78% on YoY basis to Rs 89 crore in Q1 FY24 from Rs 399 crore in Q1 FY23 and by 44% on QoQ basis from Rs 159 crore in Q4 FY23.

Express parcel shipment volumes grew 19% YoY to 182 million in Q1 FY24 from 152 million shipments in Q1 FY23. Volumes grew by more than two million shipments over Q4 FY23 as well, despite Q1 traditionally being a seasonally weak quarter. Correspondingly, revenue from express parcel services grew 14% YoY to Rs 1,202 crore in Q1 FY24 from Rs 1,051 crore in Q1 FY23. Revenue from part truckload services grew 34% YoY to Rs 347 crore in Q1 FY24 from Rs 259 crore in Q1 FY23 due to increased volumes, achieved through consistently high service quality. Part truckload volumes grew 44% YoY to 343K tons in Q1 FY24 from 2,39,000 tonne in Q1 FY23.

Truckload and supply chain services businesses saw a robust QoQ revenue growth of 20% and 10% respectively. “We have won important contracts in Q1, from marquee clients like Havells, TATA Motors, MamaEarth which we expect to reflect in subsequent quarters”, said Sahil Barua, MD & CEO.

Adjusted EBITDA margin stood at -1.3% in Q1 FY24 versus -12.5% in Q1 FY23 and versus 0.3% in Q4 FY23. “In Q1 FY24, we expanded capacity and network footprint in line with our growth expectations for H2 of FY24,” mentioned Sahil Barua.

Additionally, the company has appointed Professor Anindya Ghose as an independent director. Prof. Ghose currently holds the position of Heinz Riehl Chair Professor of Technology and Marketing at New York University's Leonard N. Stern School of Business. He is an expert at helping companies on their AI transformation journeys. Prof. Ghose has consulted many leading firms including Apple, Google, Facebook, Samsung etc. in various capacities including litigation matters and realising business value from their IT investments, internet marketing, business analytics, mobile marketing, digital analytics, social media, and other areas. He also serves as an Advisor to start-ups in the US, India and Singapore.