Delhivery back in the black with INR 54.3 Cr profit in Q1 FY25

SUMMARY

Delhivery reported a net loss of Rs 89.4 million in Q1 FY24 and Rs 69 million in Q4 FY24

Services revenue increased by 13% to INR 2,172 Cr in Q1 FY25 from INR 1,930 Cr in Q1 FY24

The Delhi NCR-headquartered startup’s EBITDA stood at INR 97 Cr in Q1 FY25 as against an EBITDA loss of INR 13 Cr in the corresponding quarter a year earlier

Logistics unicorn Delhivery returned to growth in the first quarter of fiscal year 2024-2025 (FY25), posting a net profit of Rs 54.3 billion on the back of solid growth in its trucking and supply chain services segments.

The startup reported a net loss of INR 89.4 Cr in the June quarter of FY24. It is worth mentioning that after the end of profitable in the third quarter of fiscal year 2024Delhivery reported a net loss of Rs 69 million in the fourth quarter of fiscal 2024.

Services revenue increased by 13% to INR 2,172 million in Q1 FY25 from INR 1,930 million in Q1 FY24. On a quarter-on-quarter basis, it grew by 5% from INR 2076 Cr.

Part load revenue increased by 25% to INR 435 million in the quarter under review from INR 417 million in Q4 FY24 and INR 347 million in Q1 FY24, driven by both volume growth and pricing actions.

In the first quarter of FY25, the Delhi NCR-headquartered startup’s EBITDA stood at INR 97 Cr, while it had incurred an EBITDA loss of INR 13 Cr in the same quarter last year.

Meanwhile, revenue from express parcel services increased by 5% to Rs 1,276 million in Q1 FY25 from Rs 1,217 million in Q4 FY2024 and by 6% from Rs 1,202 million in Q1 FY2024. Volumes in this segment increased by 1% year-on-year (YoY) and 4% quarter-on-quarter (QoQ) to Rs 183 million in the quarter under review.

In a conference call after the financial results were announced, Delhivery CEO Sahil Barua said the growth in the segment was driven by improvement in all but the large market segments, as well as greater diversification in heavy goods.

EBITDA in the express delivery sector increased by 18.2% QoQ in the reported quarter.

Where did Delhivery spend money in Q1?

Delhivery managed to keep costs under control, with the startup’s total expenses falling 1.5% quarter-on-quarter and 4.4% year-on-year to Rs 2,223 billion.

Transport, handling and service costs: The company’s expenses in this segment declined by 9.8% year-on-year to Rs 1,438 million in Q1.

On a quarter-on-quarter basis, this represents a decline of 4% compared to INR 1,519 Cr in Q4 FY23.

Employee costs: Delhivery’s employee benefits expense also declined by 6.8% quarter-on-quarter to Rs 333 million in the reported quarter from Rs 357 million in Q4FY24, on account of reduction in ESOP expenses on account of employees who exited the company in the previous quarter.

On a year-on-year basis, staff costs declined by 5.8% in the quarter under review from Rs 353 million in Q1 FY24.

During a conference call dedicated to financial results, the startup said its customer base had grown to 35,000.

The startup also said it plans to launch a network of shared dark stores that will be leased to e-commerce companies on a multi-tenant basis to enable quick delivery of goods within the city.

Ahead of the financial results announcement, shares of Delhivery ended Friday’s trading session on the BSE up 2% to Rs 416.10.