Delhivery (DELHIVERY) Q4 22/23 earnings summary

Executive summary

• FY23 consolidated revenue from contracts with customers rose 4.98% YoY to ₹72,253.01 million; net loss narrowed 0.32% to ₹10,077.79 million.

• Express Parcel volumes grew 13.93%, while H1 Spoton network integration challenges weighed on PTL volumes, revenue and margins; integration was completed by FY23-end.

• Service speed averaged 3.6 days and network reliability exceeded 91% by FY23-end; adjusted EBITDA turned positive in Q4 FY23.

Financial highlights

• Consolidated total income increased 6.99% to ₹75,302.49 million from ₹70,384.27 million in FY22.

• Consolidated net loss was ₹10,077.79 million versus ₹10,110.00 million in FY22; basic and diluted loss per share improved to ₹14.09 from ₹16.98.

• Adjusted EBITDA was a loss of ₹4,038.66 million, or -5.59% margin, versus ₹464.30 million and 0.67% in FY22; Q4 FY23 adjusted EBITDA was positive.

• Freight, handling and servicing costs rose 13.84% to ₹56,694.80 million; costs were 78.47% of customer revenue versus 72.36%, reflecting lower PTL revenue amid integration challenges.

• Depreciation and amortisation increased 36.09% to ₹8,311.44 million, mainly from network and fleet expansion and Spoton asset amortisation.

Outlook and guidance

• FY24 priorities include gaining share across existing services, expanding customer reach and developing further operational and technology interventions to improve speed, reliability and cost.

• Plans include growing intra-city and inter-city volumes on ONDC and integrating cross-border freight with domestic warehousing, PTL and TL services.

• Continued investment is planned in data solutions and the OS1 platform; the strategy prioritises long-term infrastructure, engineering, AI, machine learning, robotics and automation.

• Tractor-train trials on select routes began, with deployment expected in late FY24; the new Bhiwandi mega gateway was expected to go live during FY24.