Credits: Delhivery website

Delhivery, the FedEx & Softbank backed listed Indian logistics upstart, has announced its Q4 results for FY ending March 2024. The company has clocked a significant reduction in losses for both the final quarter (Q4 FY24) and the entire fiscal year.

For the quarter ending March 31, 2024 (Q4 FY24), Delhivery recorded a loss of ₹68.5 crore, a substantial improvement compared to the ₹159 crore loss reported in the corresponding quarter of the previous year (YoY), translating to a loss reduction of well over 57%. This positive trend was mirrored in revenue generation, with a healthy growth of 12% YoY, reaching ₹2,076 crore in Q4 FY24.

Extending this positive trajectory to the entire FY24, Delhivery’s revenue from services stood at ₹8,142 crore, reflecting a 13% increase from FY23. More importantly, the company’s overall loss after tax narrowed sharply to ₹249 crore in FY24, compared to a substantial loss of ₹1,008 crore in FY23.

For the full fiscal year 2023-24 (FY24), Delhivery reported a total revenue of ₹8,142 crore, marking a 13% increase from Rs 7,224 crore in FY23. The company’s loss after tax for the year significantly decreased to ₹249 crore, compared to a loss of ₹1,008 crore in the previous fiscal year.

This financial progress can be attributed to several key factors. Delhivery highlights “consistent service levels” and “significant improvement in profitability” as crucial achievements in FY24. This focus on operational efficiency suggests a more streamlined service delivery process, potentially enhancing customer satisfaction and loyalty. Additionally, Delhivery completed a significant portion of its planned long-term capital investments during the year. These investments likely focused on infrastructure development, such as expanding warehouse capacity or upgrading technology systems.

In a similar vein, Delhivery has actively diversified its service portfolio in recent quarters. Throughout FY24, Delhivery achieved substantial growth across its various service segments. Express Parcel shipments grew by 11%, reaching 740 million, and generating ₹5,077 crore in revenue, a 12% increase year-on-year. In the fourth quarter alone, Express Parcel shipment volumes were 176 million, with revenue up by 3% to ₹1,217 crore. The Part Truckload (PTL) segment also saw impressive gains. Freight volumes for PTL services increased by 30% to 1,429k tons for the full year, while the revenue for the same period clocked a growth of 31% to amount to ₹1,517 crore. In the fourth quarter, PTL freight volume also rose by 21% to 384k tons, while the revenue for this segment grew by 27% year-on-year to ₹417 crore.

Similarly, Delhivery’s supply chain and truckload services clocked a decent amount of growth during Q4FY24. Revenue from supply chain services increased by 25%, while the truckload service revenue surged by 59% to amount to ₹174 crore in the quarter. For the entire fiscal year, supply chain service revenue was ₹776 crore, while truckload service revenue stood at ₹609 crore.

FY24 marked a crucial year for Delhivery, characterized by consistent service levels, enhanced profitability, and significant capital investments. Sahil Barua, Managing Director and Chief Executive Officer, stated, “FY24 has been a crucial year for us where we delivered consistent service levels, significantly improved profitability, completed a large portion of our planned long-term capital investments, and achieved material working capital improvement.” And to add to this, Delhivery announced the resignation of its Executive Director and Chief Business Officer, Sandeep Kumar Barasia, effective July 1. Barasia, who has been with Delhivery for over nine years, played a pivotal role in expanding the company’s business segments and diversifying its revenue streams.