Last Update: February 22, 2023, 11:07 IST
Delhivery shares fell over 3 per cent to Rs 334 in early trading session on BSE on Wednesday, while 1.7 per cent equity worth Rs 410 crore changed hands at an average price of Rs 338 per share in the block-deal window. The buyers and sellers were not immediately known.
The stock was up for seven days in a row through Tuesday, even as its third-quarter net loss widened. Delhivery reported a huge loss of Rs 195.7 crore for the third quarter ended December 2022 (Q3 FY23), as against a loss of Rs 127 crore in the year-ago quarter. Its revenue also declined by nearly 9 per cent to Rs 1,823 crore as against Rs 2,019 crore year-on-year (YoY).
The stock has remained under pressure ever since the company said in October 2022 that it expects moderate growth in shipment volumes over the rest of FY23. Then it saw the biggest intraday fall of 18 per cent.
“Q3 EBITDA loss was below expectations as gross profit was better and other expenses were lower. The management exuded confidence of further reducing the losses. We believe current price factors represent less than 10 percent parcel growth over the next 3-5 years versus the 30 percent+ levels seen in the past. We believe underperforming B2B (Spoten), operating leverage and low e-commerce penetration driven growth,” global brokerage Jefferies said in an earnings review note.
B2C major Delhivery is making a mark in B2B through its spoton acquisitions, say analysts, who believe the company should break even in FY25E-26E with management’s focus on profitability in the industry with strong growth tailwinds Needed
“Delhi’s Q3FY23 results were a mixed bag. With the integration of SpotOn, margin improvement met expectations, but express parcel shipment volume growth was sluggish at 6 percent QoQ/flat YoY. That said, PTL volume has been showing momentum since Jan 23 and midmile optimization should aid margin expansion. Growth moderation and FY24E uncertainty are key variables in the express at present,” brokerage Nuwama Research said in a note earlier this month.
Thereafter, November 2022 saw selling pressure from pre-IPO investors as their lock-in period expired. CA Swift Investments sold a 2.5 per cent stake in the supply-chain company on 20 February, which was bought by Morgan Stanley Asia (Singapore) Pte.
SoftBank, which was a seller in Paytm, holds 18.42% stake in Delhivery, as per the December shareholding pattern. FedEx (2.87 per cent) and Nexus Venture Partners (9.1 per cent) are also yet to sell their stake.
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