Is Delhivery Profitable? Uncovering YOY Business Results

In the fourth quarter of the last fiscal year, Delhivery dipped into a loss of Rs.68 crore. When the latest financials of Delhivery were about to come, folks wondered- Is Delhivery profitable? Let’s find it out by uncovering its YOY business results!

(A) Financial Snapshot: A Turnaround Story

Let’s start with the headline figures. For the April to June 2024 quarter, Delhivery reported a profit after tax (PAT) of Rs.54 crore. This is a significant improvement from the Rs.89 crore loss they recorded in the same quarter last year. This turnaround is remarkable, and here’s a clearer comparison-

This turnaround indicates that the company has effectively managed to convert its revenue growth into profitability, addressing previous financial challenges.

(B) Sequential Comparison

When comparing Q1 FY25 to the previous quarter (Q4 FY24), the improvements become even more apparent-

You can see that Delhivery not only improved from a loss to a profit but also managed to reduce its overall expenditure slightly while increasing its total income. This reflects effective cost management and operational efficiency.

(C) EBITDA Performance: Operational Strength

EBITDA is a key indicator of operational performance, excluding the effects of financing and accounting decisions. Here’s how Delhivery’s EBITDA has fared-

The significant increase in EBITDA from a loss to a profit of Rs.97 crore in Q1 FY25 demonstrates that Delhivery has successfully improved its core operational profitability. This is a crucial metric as it shows how well the company is performing in its core logistics operations without considering the effects of interest and taxes.

(D) Segment-wise Performance: Where is growth coming from?

Delhivery’s business is divided into several segments, and each plays a role in the overall performance. Let’s break down the key segments-

(D.1) Express Parcel Services

This segment has shown solid growth-

• Shipments: Increased by 4% sequentially to 183 million in Q1 FY25 from 176 million in Q4 FY24.
• Revenue: Rose by 5% sequentially and 6% YoY.

The increase in both shipments and revenue indicates growing demand and operational capacity in the Express Parcel segment.

(D.2) Part Truckload (PTL) Services

Here’s how PTL has performed-

• Revenue:  Increased by 25% YoY to Rs.435 crore.
• Volume: Rose by 16% YoY to 399K MT.
• EBITDA Profitability: Improved to 3.2% from 2.2% in the previous quarter.

The growth in PTL revenue and volume reflects the segment’s expanding role in Delhivery’s business. The improved EBITDA profitability indicates better management of operational costs in this segment.

(D.3) Supply Chain Services

SCS is another area of strong performance. Its revenue increased to Rs.259 crore, an 11% sequential increase and 26% YoY growth.

The significant growth in SCS revenue highlights Delhivery’s success in expanding its supply chain services and attracting new business.

Note: We have already explained the Delhivery Business Model. Go through the article for detailed information.

(E) Expense Management: Controlling Costs

Managing expenses effectively is crucial for profitability. Let’s look at how Delhivery has handled its costs-

While the cost of freight and handling increased by 4%, overall expenditure decreased by 1.5% sequentially. This reduction in total expenditure, despite rising operational costs, shows that Delhivery has been successful in controlling and optimizing its spending.

(F) Market Reaction: Investor Sentiment

Finally, let’s see how the market has reacted to Delhivery’s positive results. The company’s stock price saw a notable rise after the announcement-

The increase of 2.07% in share price reflects positive investor sentiment, indicating confidence in Delhivery’s future performance and profitability.

(G) Final Words: Is Delhivery Profitable?

Absolutely, Delhivery is now profitable! In Q1 FY25, the company reported a profit of Rs.54 crore, flipping from a Rs.89 crore loss last year. Revenue soared by 12.6% to Rs.2,172 crore, and their EBITDA jumped to Rs.97 crore from a loss previously. Key segments like Express Parcel and Part Truckload (PTL) are growing, driving this financial turnaround. 

Their effective cost management and positive market reaction further underscore their successful financial turnaround.

If you’re following logistics companies or considering investments, Delhivery’s latest results are definitely worth noting. They’ve managed to transform their financials impressively, setting a strong foundation for future growth.

By the way, what are your thoughts on Delhivery’s awesome financial performance? Share your thoughts in the comments! Thanks for reading 🙂