Delhivery revenue up 10.5% YoY, losses narrow to Rs 89 Cr in Q1 FY24
The Gurugram-headquartered company's revenue growth was driven by its Part Truckload service, and it also saw a 19% YoY rise in parcel volume.
Logistics company on Friday reported a sharp decrease in losses as revenue rose on the back of truckload and supply chain services.
Delivery earned Rs 1,930 crore as revenue from services in Q1 FY24—up 10.5% from Rs 1,746 crore earned in a similar period a year ago, and a sequential growth of 4% the previous quarter when it earned Rs 1,860 crore.
The growth was largely driven by its performance in PTL (Part Truckload) services which grew 34% YoY to Rs 347 crore in the quarter gone by from Rs 259 crore in Q1 FY23. The company gave credit to increased volumes achieved through consistently high service quality.
Also, its revenue from express parcel services grew 14% YoY to Rs 1,202 crore in Q1 FY24 from Rs 1,051 crore earned in the comparable period a year ago. The company stated that despite Q1 being traditionally a weak season, it scored a 19% YoY growth in parcel volume to 182 million, and this number was even higher than its Q4 FY23 parcel volume.
Impressively, the Gurugram-headquartered company brought down its loss after tax as it narrowed by 78% on a YoY basis to Rs 89 crore in Q1 FY24 from Rs 399 crore in Q1 FY23, bringing it near profitability. The loss was down 44% on a quarterly basis as it had registered a net loss of Rs 159 crore in Q4 FY23.
The startup unicorn's adjusted EBITDA margin stood at -1.3% in Q1 FY24 corresponding to -12.5% in Q1 FY23 and 0.3% in Q4 FY23. Its adjusted EBITDA loss reduced by 89% YoY to Rs 25 crore from Rs 217 crore lost in the corresponding period in FY23.
Delhivery calculates this figure—which indicates its operating cash profitability—by adding any non-recurring expenses, any non-cash expenses, depreciation, amortisation, finance costs, and tax to the company’s PAT, as well as adjusting IndAS 116 related adjustments of lease rentals.
“We have won important contracts in Q1, from marquee clients like Havells, TATA Motors, and MamaEarth which we expect to reflect in subsequent quarters,” said Sahil Barua, MD and CEO of Delhivery, in a statement.
“In Q1 FY24, we expanded capacity and network footprint in line with our growth expectations for H2 of FY24,” he added.
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.
Edited by Kanishk Singh