Delhivery (DELHIVERY) Q1 24/25 earnings summary

Executive summary

• Achieved 13% year-over-year revenue growth and improved profitability across all core businesses, with adjusted EBITDA at 1.7% for the quarter and stable Express Parcel service EBITDA at ~18%.

• PTL (Part Truckload) EBITDA improved to 3.2%, and SCS (Supply Chain Services) revenues grew 26% year-over-year.

• Customer base expanded from 33,000 to nearly 35,000, with stable infrastructure and no major capacity additions.

• Express Parcel volumes remained stable with growth in non-marketplace segments.

• Board approved unaudited standalone and consolidated financial results for the quarter ended June 30, 2024, with auditor review confirming no material misstatements.

Financial highlights

• Revenue grew 12.6% year-over-year and 4.7% quarter-on-quarter, reaching INR 2,270 crore (₹21,723 million consolidated).

• Adjusted EBITDA improved to INR 37 crore (1.7%), up from -INR 25 crore last year; EBITDA margin at 4.5% in Q1 FY25.

• PAT was INR 54 crore (2.4%), positively impacted by INR 39 crore from depreciation policy change and INR 20 crore ESOP reversal; consolidated net profit was ₹543.59 million.

• Express Parcel EBITDA stable at 18%; PTL EBITDA improved to 3.2%; SCS EBITDA margin at 4.4%.

• 183 million parcels handled in Express Parcel, up 0.6% YOY and 4.1% QOQ; truckload volumes up 16% YOY.

Outlook and guidance

• Anticipates strong volume growth in upcoming quarters, especially during peak season, with e-commerce market annual growth rates expected between 15%-20%.

• PTL business expected to deliver margins in line with Express, potentially higher as scale increases.

• SCS pipeline robust, with solid growth anticipated for the rest of the year and continued focus on profitable growth across all service lines.

• Management changed depreciation method to Straight-Line Method from April 1, 2024, reducing depreciation expense by ₹391.46 million (consolidated) for the quarter.

• Unutilized IPO proceeds of ₹9,316.8 million remain invested in fixed deposits for future growth initiatives.