Delhivery Shares Drop Most Since IPO After Q1 Loss Widens
Delhivery posted a net loss of Rs 400 crore in the June quarter compared with a Rs 192-crore loss a year ago.
Shares of Delhivery Ltd. dropped as much as 11.3%, the most since the company debuted on the bourses, on wider losses in the first quarter.
The logistics company posted a net loss of Rs 400 crore in the quarter ended June compared with a Rs 192-crore loss a year ago.
Q1 FY23 Highlights (YoY)
Revenue up 15.7% to Rs 1,746 crore.
Adjusted operating loss at Rs 217 crore against a loss of Rs 58 crore.
“Our Ebitda margin was temporarily affected through the integration phase with Spoton as a result of inherent seasonality in the partial truckload business, slightly slower than planned phasing of customer restarts and retention of capacity to maintain service quality and in anticipation of second half volumes,” said Abhik Mitra, chief customer experience officer, Delhivery and CEO of Spoton.
Ajith Pai, chief operating officer, Delhivery, said, “The first half is the period during which we commission new capacity 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 utilisation to improve.”
Shares of the company fell over 11%—the worst since May 24—as of 11 a.m. on Wednesday. Of the 10 analysts tracking the company, five maintain a 'buy', three suggest a 'hold', while two recommend a 'sell', according to Bloomberg data. The 12-month consensus price target implies an upside of 2.5%.