Delhivery Ltd shares fell as much as 11.3% on larger losses in the first quarter, the sharpest reading since the company’s IPO.
The logistics company posted a net loss of Rs. 400 crore for the quarter ended June, compared with a loss of Rs. 192 crore a year ago.
Highlights Q1 FY23 (YoY)
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Turnover increased by 15.7% to Rs 1,746 crore.
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Adjusted operating loss at Rs 217 crore versus a loss of Rs 58 crore.
“Our Ebitda margin was temporarily impacted by the integration phase with Spoton, due to inherent seasonality in the less-than-truckload business, a slightly slower than planned phasing of customer restarts and maintaining capacity to maintain quality of service and in anticipation of volume in H2 is,” said Abhik Mitra, Chief Customer Experience Officer, Delhivery and CEO of Spoton.
Ajith Pai, Chief Operating Officer of Delhivery, said: “The first half is the period in which we are bringing new capacity online in preparation for seasonally higher volumes in the second half. As PTL freight volumes continue to recover and express parcel shipments continue to grow, we expect capacity utilization to improve.”
Shares of the company fell more than 11% as of 11 a.m. Wednesday – the worst since May 24. Of the 10 analysts covering the company, five maintain a “buy” recommendation, three recommend a “hold,” while two recommend a “sell,” according to Bloomberg data. The 12-month consensus price target implies a 2.5% upside potential.
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