Delhivery Loss Narrows Sequentially To ₹158.6 Crore In Q4 FY23

The company's revenue in the March quarter declined by 10% year-on-year to ₹1,860 crore, down from ₹2,072 crore in the corresponding period of the previous year. However, there was a sequential increase of 2% from ₹1,824 crore.

The company's operating profit margin improved to 0.3% in January-March period, marking an increase of 397 basis points compared to -3.7% in the previous quarter (Q3 FY23).

Additionally, the core express parcel and PTL (Partial Truck Load) businesses maintained gross margins above 50%, said the company.

Delhivery attributed the improvements to factors such as better utilization of network capacity, cost optimization through technology-driven fleet operations, and enhanced revenue and margin quality across customer segments.

"Critical leading indicators like service precision, network speed and delivery quality parameters are at all time high levels and are driving greater customer confidence and share of wallet growth. The momentum built up in Express and PTL in Q3 has carried into Q4 and FY24 as well," said Sahil Barua, Managing Director & Chief Executive Officer, Delhivery.

Despite Q3 being a seasonally strong quarter due to festive sales, Delhivery reported a 10 million shipment increase in express parcel volumes, reaching 180 million shipments in Q4 FY23 compared to 170 million shipments in Q3 FY23.

Moreover, revenue from PTL witnessed a 19% quarter-on-quarter growth, rising to Rs. 328 crore in the March quarter from Rs. 277 crore in Q3 FY23, attributed to higher volumes and consistently high service quality. PTL volumes also grew by 23% in the January-March period, reaching 318,000 tonnes compared to 258,000 tonnes in the previous quarter (October-December FY23).

"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. We have aggressive infrastructure and capability expansion plans in place and are confident of the strong start in April and H1 of May continuing through the year," said Sahil Barua.

Shares of Delhivery ended 1.2% lower at ₹361.35 apiece on the NSE.