Delhivery slipped 2.15% to Rs 308.95 after logistics solution provider's consolidated net loss widened to Rs 195.65 crore in Q3 FY23 as against a net loss of Rs 126.52 crore recorded in Q3 FY22.
Revenue from contracts with customers fell by 8.6% YoY to Rs 1,823.84 crore during the quarter ended 31 December 2022.Revenue from services stood at Rs 1,822 crore in Q3 FY23, down 9% from Rs 1,995 crore in Q3 FY23.
Revenue from Express Parcel services fell 1% YoY to Rs 1,200 crore in Q3 FY23. Express Parcel volumes remained constant on YoY basis to 170 million shipments in Q3 FY23 despite of festive season sales starting in Q2 this year, unlike FY22.
Revenue from Part Truckload services was lower by 42% YoY at Rs 277 crore in Q3 FY23, from Rs 477 crore in Q3 FY22. The PTL business demonstrated robust volumes and consistently high service levels through November, December and January, providing a strong momentum as the business enters the busiest part of the year, said the company.
PTL freight volumes for Q3 FY23 slipped to 258,000 tonnes as against 443,000 tonnes in Q3 FY22.
The company incurred an Adjusted EBITDA loss of Rs 67 crore in Q3 FY23 as compared with an adjusted EBITDA of Rs 74 crore in Q3 FY22.
Delhivery said that its overall business economics continued to improve with Adjusted EBITDA margin improving to negative 3.7% in Q3 FY23 from negative 7.0% in Q2 FY23, driven by a combination of factors. However, Adjusted EBITDA margin tumbled on YoY basis from 3.7% posted in Q3 FY22.
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In line with Q2 FY23, the incremental gross margin in the Express Parcel and PTL businesses combined continued to be approximately 50% in Q3 FY23 as well. Additionally, improved capacity utilization in the network, ongoing cost optimization measures and continued focus on revenue quality & margin improvements across customer segments also contributed to improvement in Adjusted EBITDA, said the company.
Truckload and Supply Chain Services businesses remained stable in the seasonality driven Q3 FY23 period. The SCS customer pipeline continued to expand, with new clients added in the auto ancillary & parts, healthcare, home furnishing & furniture, beauty & personal care, consumer electronics and construction sectors, along with expansion of existing contracts in auto, industrial and consumer segments.
The company reported an adjusted cash profit of Rs 34 crore in this quarter as against Rs 101 crore in Q3 FY22.
Sahil Barua, managing director and chief executive officer, Delhivery, said, Leading indicators of our business - service precision, network speed and quality parameters all continue to show positive traction. We have had a good end to the year and this momentum has carried into 2023. We are confident of continued improvement in our transportation business, especially PTL, and overall profitability metrics.
Delhivery is India's largest and fastest growing fully integrated logistics services provider. With its nationwide network covering over 18,500 pin codes, the company provides a full suite of logistics services such as express parcel transportation, PTL freight, TL freight, cross-border, supply chain, and technology services.
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