Delhivery’s Turnaround: Q2 Results Reveal a Profit Ascend

In a substantial financial upturn for Gurugram-based logistics titan, Delhivery, the company has reported a consolidated net profit of Rs 10 crore for Q2 FY25, marking a significant bounce from a loss of Rs 103 crore in the same quarter last year.

Revenue Growth Trajectory

Delhivery’s consolidated revenue from operations climbed 13% year-over-year (YoY) to reach Rs 2,190 crore, up from Rs 1,942 crore reported in Q2 FY24. This growth underscores Delhivery’s robust expansion efforts in the logistics and supply chain sectors. On a sequential note, revenue edged up by a modest 0.80% compared to Q1 FY25’s Rs 2,172 crore.

EBITDA Performance: A Turnaround

The company’s Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) saw a dramatic upswing, rising to Rs 57 crore in Q2 FY25. This added Rs 73 crore from a YoY standpoint, a significant rebound from an EBITDA loss of Rs 16 crore in Q2 FY24.

Express Parcel and Part Truckload: Key Revenue Catalysts

• Express Parcel Revenue: Achieved a 7% YoY growth, reaching Rs 1,298 crore, with shipments rising by 3% YoY to 185 million.
• Part Truckload (PTL) Revenue: Recorded a 27% YoY increase to Rs 474 crore, with volumes spiking 23% YoY to 427,000 metric tons.

Strategic Adjustments and Future Projections

Delhivery also noted a sequential dip in their supply chain services, attributable to typical client business seasonality. Nonetheless, revenue from Supply Chain Services increased 21% YoY to Rs 197 crore in Q2 FY25.

Sahil Barua, Managing Director and CEO, highlighted the company’s enhancements in October, especially during the festive season, with daily express volumes rising by 25% against pre-festive periods.

Additional Revenue Streams

• Truckload Services: Posted a 5% YoY growth to achieve Rs 158 crore.
• Cross Border Services: Experienced a surge of 43% YoY to Rs 59 crore.

Market Reactions and Stock Performance

Following the earnings release post-market hours, Delhivery shares concluded at Rs 328.60 on the NSE, reflecting a 0.51% dip from its previous close. Despite a robust performance by Delhivery, the stock market response remained tepid.

For further detailed reports on the company’s financial trajectories, expert views, and market insights, investors and market watchers can subscribe to exclusive updates through platforms like ETMarkets.

Conclusion

Delhivery’s Q2 FY25 outcomes demonstrate a pivotal turnaround with increased profitability, despite seasonal challenges and muted market responses. The company’s performance lays a promising foundation for future growth, particularly in key segments such as express parcels and part truckload revenue streams. Investors keen on the logistics sector should continue to monitor Delhivery’s strategic maneuvers and sector performance.

Stay updated with the latest insights on Delhivery and similar fast-growing companies by subscribing to ETMarkets’ WhatsApp and Telegram alerts.

(Disclaimer: The recommendations, suggestions, and opinions expressed herein are those of individual experts and do not represent the views of The Economic Times)

Source: https://economictimes.indiatimes.com/markets/stocks/earnings/delhivery-q2-results-co-posts-rs-10-cr-profit-vs-yoy-loss-revenue-up-13/articleshow/115299961.cms