Revenue from operations declined 10.2% year on year to Rs 1,859.63 crore in the quarter ended 31 March 2023.

The company recorded a pre-tax loss of Rs 172.63 crore in the fourth quarter of FY23 from pre-tax loss of Rs 130.59 crore reported in the corresponding quarter last fiscal.

During the quarter, adjusted EBITDA was at Rs 6 crore, down 92.59% YoY. EBITDA turned positive as compared to Rs 67 crore loss in Q3 FY23. Adjusted EBITDA margin stood at 0.3% in Q4 FY23, a 397 bps increase from negative 3.7% in Q3 FY23. EBITDA margin was at 3.9% in Q4 FY22. Incremental gross margin in the core Express Parcel and PTL businesses continued to be above 50%.

This margin improvement was driven by a combination of factors including continued improvement in network capacity utilization, technology-driven cost optimization in fleet operations and improvement in revenue and margin quality across customer segments. The company has also opened up its internal and third-party demand to brokers and fleet owners through its Full Truckload Exchange (Orion) leading to pricing benefits in long-haul and short-haul trucking through competitive bidding and greater vehicle utilization for its partners.

Delhivery said that it has also reported growth in Express Parcel volumes by 10 million shipments QoQ to 180 million shipments in Q4 FY23 from 170 million shipments in Q3 FY23 despite Q3 being a seasonally strong quarter with festive sales. Corresponding revenue stood at Rs 1,177 crore in Q4 FY23 versus Rs 1,200 crore in Q3 FY23.

Revenue from PTL services grew 19% QoQ to Rs 328 crore in Q4 FY23 from Rs 277 crore in Q3 FY23 due to increased volumes, gained through consistently high service quality. PTL volumes grew 23% QoQ to 318,000 tonnes in Q4 FY23 from 258,000 tonnes in Q3 FY23, it added.

Truckload and Supply Chain Services businesses saw a robust QoQ revenue growth of 8% and 6% respectively while the Cross-Border services business saw a revenue decline of approximately Rs 9 crore, despite robust volumes, on the back of falling global yields in both air and ocean freight and volume impact of the Chinese New Year holidays, the company stated.

On full year basis, the company reported a consolidated net loss of Rs 1,007.78 crore in FY23 compared with net loss of Rs1,011 crore posted in FY22. Net sales rose 5% YoY to Rs 7,225.30 crore during FY23.

Sahil Barua, managing director & chief executive officer of Delhivery, said, “Critical leading indicators like service precision, network speed and delivery quality parameters are at all time high levels and are driving greater customer confidence and share of wallet growth. The momentum built up in Express and PTL in Q3 has carried into Q4 and FY24 as well. We have aggressive infrastructure and capability expansion plans in place and are confident of the strong start in April and H1 of May continuing through the year.”

Meanwhile, the company announced that it has agreed to invest in 10.94% equity shares (34,46,374 equity shares) of Vinculum Solutions. The investment is the first part of a potential 2-stage deal that provides Delhivery the option to further increase its shareholding in the company after six months.

Vinculum is a global software leader enabling omnichannel retailing for D2C enterprises, brands, brand distributors, and quick commerce companies. It reported a turnover of Rs 44.63 crore in FY22.

Direct-to-Consumer enterprises are a focus market for Delhivery, and the investment is expected to strengthen its position as a leading fulfillment solutions provider in the segment. Through this investment, the two companies will build a complete integrated stack to address the entire range of post-purchase needs of a D2C brand. A deeper integration with Vinculum's industry-leading Order Management System (OMS) will be a fully-integrated E2E offering.

The firm said that the investment is expected to be completed by 30 June 2023.

Delhivery is India's largest and fastest growing fully integrated logistics services provider. With its nationwide network covering over 18,500 pin codes, the company provides a full suite of logistics services such as express parcel transportation, PTL freight, TL freight, cross-border, supply chain, and technology services.

Shares of Delhivery were up 0.48% to Rs 363.15 on the BSE.