Logistics company Delhivery widened its losses along with a drop in its revenue in the last quarter amid a challenging business environment.
The company widened its losses to Rs 195.7 crore in the third quarter of the financial year 2023, compared to Rs 126.5 crore during the same period last year. Not only did the company’s losses increase, its revenue from operations also sank 8.6% to Rs 1823.8 crore in the quarter-ended December 2022, according to the statements filed with the exchange.
However, losses and revenue have both improved slightly on a sequential basis. Delhivery had reported a loss of Rs 254.1 crore and operating revenue of Rs 1,796.1 crore during the September quarter.
The company’s stock trading at Rs 315.75, down 0.6% at the end of trading on Friday. Relatively, benchmark Sensex was down 0.2%.
Delhivery provides a full suite of logistics services such as express parcel transportation, freight, freight, cross-border, supply chain, and technology services, covering a network of over 18,400 pin codes in the country. It works with over 28,000 customers, including large & small e-commerce participants. Since it listed on the stock exchange in May 2022, the company has lost over 41% of its stock value.
Operationally, the company said it improved its adjusted Earnings before interest, taxes, depreciation, and amortization (Ebitda) by 47% sequentially to Rs 67 crore in the third quarter of financial year 2023.
“Improved capacity utilization in the network, ongoing cost optimization measures and continued focus on revenue quality and margin improvements across customer segments also contributed to improvement in adjusted Ebitda,” Delhivery said in a statement.
During the quarter, the company’s express parcel services business grew by 7% to Rs 1200 crore, owing to growth in volume. Its truckload and supply chain services businesses were hurt owing to the “seasonality” in the third period, the company said.
“We are confident of continued improvement in our transportation business, especially Part Truckload services, and overall profitability metrics,” Sahil Barua, chief executive officer, Delhivery said.
“Leading indicators of our business - service precision, network speed and quality parameters all continue to show positive traction,” he added.
In December, Delhivery said it will acquire Pune-based supply chain software firm Algorhythm Tech Pvt. Ltd for Rs 14.9 crore in cash, to enhance its integrated supply chain solutions offering.
