Delhivery Reduces Q2 Losses By 60% To INR 254 Cr With Income Up By 23%

In the second quarter of the fiscal year 2022–23 (FY23), logistics behemoth Delhivery reported reducing losses to INR 254.1 Cr, down nearly 60% from INR 635 Cr in Q2 FY22.

Total revenue for the company increased by 23% to INR 1,883.3 Cr in Q2 FY23 from INR 1,528.1 Cr in the prior fiscal year. This was primarily due to the festival season since e-commerce and gift shipments both increased significantly throughout the quarter.

During the quarter under review, total expenses were constant at INR 2,157.7 Cr down from INR 2,161.5 Cr in Q2 FY22. A substantial chunk of the expenses INR 1,435.8 Cr or freight, handling, and maintenance charges increased 24% year over year.

Additionally, Delhivery reduced their employee benefit costs in Q2 FY23 from INR 444.2 Cr to INR 352.8 Cr, a 20% YoY decrease.

“Now that Spoton’s integration is supporting us, our outlook future is positive. Our structural cost and network advantages combined with investments in technology, automation, and our remarkably strong finances place help us to enhance our market presence across the parts in the INR 15 Lakh Cr Indian logistics industry”. Sahil Barua, Managing Director & CEO of Delhivery said.

Delhivery Purchased Spoton

Delhivery just purchased Spoton, a B2B Logistics Firm with headquarters in Bengaluru. A loss in adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) of INR 125 Cr was also disclosed by the company for the quarter.

The volume of shipping increased overall by 80% throughout the holiday season. During the quarter, express parcel volumes increased 19% on an annual basis to 161 Mn shipments. The total freight volume for PTL services increased from 2.39 lakh tones in Q1FY23 to 2.86 lakh tones in Q2FY23 along similar lines.

The Company

Delhivery is a provider of logistics and supply services in India. This Gurgaon based company is created by Sahil Barua, Bhavesh Manglani, Mohit Tandon, Suraj Saharan and Kapil Bharati in 2011. As of 2021, the firm had more than 85 fulfillment centers, 24 automated sorting facilities 70 hubs, 7,500+ partner facilities and 3,000+ direct delivery facilities. Two-thirds of the company’s income comes from providing delivery and logistics services to e-commerce businesses.

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