Synopsis: Delhivery's net profit more than doubled to ₹25 crore in Q3 FY25, marking a 114% year-on-year increase. Despite the profit surge, the company's stock hit a 52-week low, closing at ₹300 on the BSE. Revenue from operations grew by 8.4% to ₹2,378.3 crore, driven by significant gains in the Part Truckload (PTL) and Supply Chain Services segments.
In the third quarter of the fiscal year 2024-25 (Q3 FY25), Delhivery Ltd, a leading logistics and supply chain services company, reported a substantial increase in net profit, achieving ₹25 crore—a 114% rise from ₹11.7 crore in the same period the previous year.
This impressive profit growth was accompanied by an 8.4% increase in revenue from operations, totalling ₹2,378.3 crore compared to ₹2,194.4 crore in Q3 FY24.
The company's Part Truckload (PTL) segment was a significant contributor, with revenue surging 22% year-on-year to ₹462 crore, up from ₹379 crore.
PTL volumes also experienced a 17% growth, reaching 412,000 metric tonnes in Q3 FY25.
Supply Chain Services demonstrated robust performance, with revenue increasing by 29% to ₹222 crore, driven by new client acquisitions and expanded business with existing clients.
Despite these positive financial indicators, Delhivery's stock faced challenges in the market.
The share price declined by 5.29%, closing at ₹300 on the Bombay Stock Exchange (BSE), down from the previous close of ₹316.75.
This drop marked a new 52-week low for the company. The market capitalization consequently fell to ₹22,920 crore.
Analysts have noted that the stock's decline may be attributed to broader industry headwinds and a slowdown in e-commerce volumes, which have impacted investor sentiment despite the company's strong financial performance.
Brokerage firm Nuvama adjusted its price target for Delhivery to ₹380 from ₹400, maintaining a 'BUY' recommendation but acknowledging the weaker-than-expected Q3 results.
At the operational level, the company's EBITDA decreased by 6.2% to ₹102.4 crore, with the EBITDA margin narrowing to 4.3% from 5% in the previous year.
This decline is primarily attributed to increased operational costs.
Sahil Barua, Managing Director and CEO of Delhivery, commented on the results, stating, "Profitability continued in Q3 despite broader industry headwinds, and December has been our highest volume month in PTL thus far post-integration of Spoton, which has continued into January as well."
Conclusion:
Delhivery's Q3 FY25 results highlight a significant improvement in profitability and revenue growth across key segments.
However, the concurrent decline in stock value underscores the complex dynamics of market perception, where external factors and investor expectations can influence stock performance despite strong financial outcomes.
The company's leadership remains optimistic, focusing on sustained growth and operational efficiency to navigate industry challenges.
Disclaimer: This article is for informational purposes only and should not be construed as investment advice. Readers are encouraged to consult with a qualified financial advisor before making any investment decisions.
