Delhivery Q4 revenue falls 10%, loss widens to Rs 158 crore

Ecommerce-focussed logistics company Delhivery said March-quarter revenue fell 10% to Rs 1,859 crore from the year earlier and its net loss widened to Rs 158 crore from Rs 119 crore. Expenses fell 6% to Rs 2,107 crore from Rs 2,254 crore, it said in an exchange filing.

The company said its adjusted Ebitda turned positive in the quarter at Rs 6 crore compared to Rs 67 crore loss in Q3FY23.

The company has seen senior-level exits in recent months. Chief compliance officer Sunil Kumar Bansal’s departure was announced on May 5. Chief customer experience officer Abhik Kumar Mitra resigned in April. Mitra was the CEO of Spoton, a logistics company Delhivery had acquired for around $200 million in 2021.

ET reported on May 11 that shopping across ecommerce platforms was growing slower than anticipated, according to industry executives, multiple brands and third-party platforms tracking shipment and sales data.

Data from Unicommerce, an ecommerce-focused software solutions provider, showed 16% year-on-year volume growth in the March quarter. Third-quarter volumes climbed approximately 19%.

Delhivery said March-quarter shipments grew to 180 million from 170 million in the preceding one. Revenue from express parcel services, the core ecommerce delivery business, fell 1% sequentially to Rs 1,177 crore in the fourth quarter.

The Gurgaon-based logistics firm has seen its market share in ecommerce shipments slip to an estimated 21.5% in FY23 from 23% in FY22. That’s expected to decline to 19% by FY30, according to a report by brokerage firm Bernstein.

The Bernstein report noted that Delhivery’s market share had risen to 22-23% in FY22 from 15-16% in FY21.

Sequentially, Delhivery’s revenue from operations grew 2%, up from Rs 1,822 crore. Revenue from part truckload services rose 19% sequentially to Rs 328 crore in the fourth quarter from Rs 277 crore in the third due to increased volumes.

Truckload and supply chain services businesses saw sequential revenue growth of 8% and 6%, respectively, while the cross-border services business saw a revenue decline of approximately Rs 9 crore. The company said this is due to falling global yields in both air and ocean freight and the volume impact of Chinese New Year holidays.

“The momentum built up in express and part truckload in Q3 has carried into Q4 and FY24 as well,” said Sahil Barua, managing director and chief executive officer of Delhivery. “We were confident of continued improvement in the core transportation business and overall profitability at the end of last quarter and are happy to report we have delivered both in this quarter as planned.”

The company has aggressive infrastructure and capability expansion plans and is confident of a strong start in April and the first half of May continuing through the year, he said.

Delhivery's share price fell 1.12% to close at Rs 361.4 on Friday before the results were announced.