Logistics firm Delhivery said on Thursday it expects moderate growth in shipping volumes for the remainder of FY23. The news saw the company’s share price fall 14% to Rs 479, on BSE.
The Gurugram-based company said market sentiment in the second quarter was broadly unchanged from the June quarter, citing industry reports as part of its business update for the second quarter ended September 30, 2022 filed. at stock exchanges.
“Discretionary consumer spending remained subdued due to continued high levels of inflation, with average user spending and total active shoppers remaining flat or lower through the current holiday season,” he said. he stated in the scholarship file.
Delhivery’s subdued outlook for festive sales and moderate growth, which is among the leading third-party e-commerce logistics companies, may indicate a broader gloomy outlook on the performance of the e-commerce segment.
Delhivery said shipment volumes in its supply chain services (SCS) and full truckload (TL) businesses declined sequentially, due to the seasonality of customer business.
Also read: ITC beats estimates to post net profit of Rs 4,466-cr
“However, both businesses posted substantial double-digit growth compared to a year ago. Our cross-border business also posted steady growth despite a global slowdown and lower air and ocean freight yields,” the company said. business update.
“Industrial production also remained weak in the first two months of the quarter. Despite challenging market conditions, our market position remains strong thanks to our structural cost advantages, network size and capacity investments,” the company said.
“Going forward, we remain attentive to market sentiment. We made sufficient capacity investments in FY22 and early FY23 to maintain our current growth rate and expect further decisions on mega gateways and sorters only in early FY23. exercise 24,” he added.
Delivery had posted a wider net loss of Rs 399 crore for the three months ended June 30, 2022, which was its first earnings announcement since its May 25 IPO. The company had reported a loss of Rs 130 crore in the June quarter last year, and reduced it to Rs 120 crore in the March quarter, according to a BSE filing.
The company’s operating revenue was Rs 1,795 crore in the June quarter, up 32% year on year, while it was down 16% sequentially from the March quarter . The company had said that declining sales of e-commerce businesses due to rising inflation impacted revenue as e-commerce share is the biggest contributor to revenue.
Overall, the company suffered an Adjusted EBITDA loss of Rs 217 crore in Q1FY23 compared to an Adjusted EBITDA loss of Rs 58 crore according to its proforma figures.