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Q1 FY25 Earnings Call Summary for Delhivery Limited
Financial Performance • Revenue Growth: 13% year-over-year increase, reaching Rs. 2,172 crores. • Profitability: Adjusted EBITDA of Rs. 37 crores (1.7%), a recovery from last year's loss. • Profit After Tax: Rs. 54 crores for the quarter. • Customer Base Expansion: Increased from 33,000 to nearly 35,000.
Key Business Segments • Part Truckload (PTL): 25% growth driven by seasonal demand. • Supply Chain Services: 26% increase attributed to seasonal demand.
Depreciation Methodology Change • Shift from Written Down Value (WDV) to straight-line depreciation to align with industry standards.
Market Insights • E-commerce Growth: Projected annual growth rates of 15-20%. • Quick Commerce Strategy: Launching shared dark store warehousing for rapid local delivery.
Dark Store Infrastructure • Target Market: Focus on direct-to-consumer companies rather than traditional grocery items. • Market Share: Addressed concerns regarding competition from Meesho and others.
Service Levels and Employee Management • Service Quality: Robust service levels contributing to market share in the 3PL sector. • Employee Costs: No changes to the employee increment cycle; managing growth without additional hires.
Industry Dynamics • Consolidation: Anticipated due to challenges faced by less competitive players. • Integrated Logistics Model: Emphasized advantages over disintermediated networks.
Future Outlook • Supply Chain Services Growth: Strong pipeline with recent contract wins in B2B sectors. • PTL Business Profitability: Expected to mirror stable margins of the Express business. • Overall Confidence: Optimistic about performance and growth prospects for the remainder of the year.
Delhivery Limited Q4 FY24 Earnings Call Summary
Earnings Call Overview • Date: May 17, 2024 • Key Executives: CEO Sahil Barua, CFO Amit Agarwal • Moderator: Baiju Joshi (Macquarie Capital) • Transcript available on Delhivery's website • Forward-looking statements emphasized
Financial Performance Highlights • EBITDA Profitability: Achieved Rs. 127 crores profit vs. Rs. 452 crores loss in FY23 • PAT Loss Reduction: Decreased by 75% from Rs. 1,000 crores to nearly Rs. 250 crores • Revenue Growth: Total revenue of Rs. 8,142 crores for FY24, up 12.7% from FY23 • Q4 Revenue: Rs. 2,076 crores, 11.6% year-on-year growth, decline from Q3 peak • Express Parcel Business: Delivered 740 million parcels; service EBITDA of Rs. 934 crores
Business Segment Performance • Part Truckload (PTL): Grew over 30% year-on-year; first quarter of service EBITDA profitability in Q4 FY24 • Supply Chain Services (SCS): Doubled service EBITDA from Rs. 25 crores to Rs. 53 crores • Corporate Overheads: Remained stable with slight increases in wages and marketing expenses
Operational Insights • Working Capital Improvement: Receivable days decreased from 77 to 66 • Growth Challenges: Express Parcel growth lower than expected due to online consumption decline • Margin Stability: Express Parcel steady-state margin at 18%-20%
Future Outlook • Capex Plans: FY24 Capex at Rs. 600 crores, expected to decrease in FY25 • Quick Commerce Participation: Cautious approach to ultra-fast delivery models; focus on 2-4 hour delivery segments • SCS Revenue Stability: Diversifying customer base to stabilize revenue; profitability expected to improve
Market Position and Strategy • Competitive Landscape: Focus on building capacity and service quality over price competition • Growth Projections: Conservative estimate of 15%-20% volume growth; strong outlook for B2B segment • Drone Delivery: Limited commercial applications anticipated; no near-term impact on profitability
Closing Remarks • Confidence in Performance: Sahil Barua expressed optimism for continued growth and profitability in FY25.
Delhivery Limited Q3 FY24 Earnings Call Summary
Overview • Date of Call: February 3, 2024 • Transcript Availability: Delhivery's investor relations website • Key Executives: CEO Sahil Barua, CFO Amit Agarwal, moderated by Baiju Joshi
Financial Performance • Record Revenues: Rs. 2,194 crores, a 20% year-on-year increase • Profit After Tax (PAT): First-time positive PAT of Rs. 12 crores • Adjusted EBITDA: Rs. 92 crores, reflecting a 4.2% margin • Operational Growth: Over 200 million consignments delivered in Express Parcel business
Strategic Highlights • Network Expansion: Servicing 18,675 pin codes with 110 gateways • Client Acquisitions: Successful in various sectors • Cost Management: Corporate overheads decreased from 12% to 9.7% of revenue
E-commerce and Market Dynamics • E-commerce Growth: Strong performance in D2C, SME, and C2C segments • Sustainability of Growth: Long-term industry growth expected at 15%-20% • Same-Day Delivery: Available since 2012, not a new initiative
Operational Insights • Utilization Rates: 75-80% tractor-trailer utilization expected to yield around 30% gross margins • Dynamic Routing: Enhances efficiency and cost savings • Tractor-Trailer Fleet: Current fleet of 13,000 vehicles, potential growth to 18,000-20,000 in three years
Future Outlook • Market Share Strategy: Focus on optimizing existing investments rather than significant new investments • Profitability Expectations: Stable transportation margins projected between 16% to 18% • Investment in Technology: OS1 platform development ahead of schedule, with international sales expansion planned
Challenges and Considerations • Customer Insourcing: Potential impact on market share, but confidence in maintaining position • Pricing Strategy: No aggressive pricing changes anticipated; focus on maintaining profitability • Lease Rental Costs: Stable despite network expansion, with slight increases expected in future quarters
Conclusion • Overall Performance: Marked as a peak quarter with significant improvements in profitability and operational efficiency • Future Growth: Optimistic outlook for continued growth and market positioning in the logistics sector.
Delhivery Limited Earnings Conference Call Summary (November 4, 2023)
Overview • Date of Call: November 4, 2023 • Financial Results: Unaudited results for the quarter and half-year ending September 30, 2023 • Key Participants: • CEO: Sahil Barua • CFO: Amit Agarwal • Moderator: Kavya Shetty • Transcript Availability: Delhivery's investor relations website • Communication Signed By: Vivek Kumar, Company Secretary and Compliance Officer
Financial Performance • Revenue: Rs. 1,942 crores (8.1% YoY increase) • EBITDA Margins: Improved to -0.6% (near breakeven) • Package Deliveries: • 181 million in express business • 348,000 metric tons in part truckload (PTL) freight • Network Expansion: Coverage increased to 18,655 PIN codes; automated sortation capacity at 6.65 million parcels/day • Active Customer Base: Over 30,000 customers
Future Expectations • Q3 Projections: Anticipated strong performance due to festive season • Expected: Over 70 million express parcels and 120,000 tons of PTL volumes • Focus Areas: Improving revenue quality, margins, and working capital while expanding infrastructure
Cross-Border Services • Volume Growth: Notable in cross-border services, but yields flattening • Adjusted EBITDA: Improved from a loss of 1.3% in Q1 FY24 to -0.6% in Q2 FY24 • Transportation Business: Incremental revenue growth despite increased costs
Management Insights • Capacity Expansion: Small increase (6-7%) with no major expansions planned for Q3 and Q4 • Pricing Renegotiations: Focus on part truckload freight; no significant changes in express business pricing • E-commerce Growth: Strong performance expected; long-term growth potential emphasized
Strategic Focus • Supply Chain Services: Expanding capabilities to acquire new customers • Market Share: Stable at 21%-22% in express parcel sector; growth in SME segment • Customer Acquisition: Positive internal metrics and successful contract renewals
Logistics Landscape • Industry Evolution: Indian enterprises viewing supply chains as strategic advantages • Business Model: Consultative approach to redesigning customer operations
Financial Outlook • Service EBITDA Margins: Projected stabilization in the 18%-20% range • Investment Phase: Focus on long-term profitability over immediate volume increases • Operational Stability: Confirmed post-peak season; expanding sales force into tier 2, 3, and 4 cities
Customer Dynamics • New SME Customers: 4,000 onboarded in Q2 • Switching Costs: Perceived as challenging for customers moving from Delhivery
Conclusion • Overall Performance: 8% revenue growth in H1; optimism for continued performance in the latter half of the year.
Delhivery Limited Q1 FY24 Earnings Call Summary
Earnings Call Overview • Date: August 5, 2023 • Transcript issued on August 11, 2023 • Key Management: CEO Sahil Barua, CBO Sandeep Barasia, CFO Amit Agarwal • Purpose: Discuss unaudited financial results for the quarter ending June 30, 2023
Financial Performance • Revenue: Rs. 1,930 crores (11% YoY increase, 4% QoQ increase) • Shipments: 182 million (19.2% YoY growth) • Adjusted EBITDA Margin: Improved to -1.3% • Corporate Overhead: Increased to Rs. 221 crores (11.4% of revenue)
Operational Highlights • Infrastructure Expansion: Increased delivery centers and gateways, stable reach across 18,530 PIN codes • Volume Growth: 8% growth in PTL business QoQ, 44% YoY • Client Focus: Shift towards Direct-to-Consumer (D2C) and smaller players
Strategic Initiatives • Technology Development: Enhancements in Orion platform for competitive pricing • Market Share: Gained 1-2 percentage points, growing at 19% in volume • Future Outlook: Optimistic about growth with capacity expansions and stable margins
Challenges and Responses • Seasonal Trends: Q1 typically weak; expectations for growth in Q2 around Diwali • Supply Chain Volatility: Addressed decline in supply chain business, expecting recovery in Q3 and Q4 • Cost Management: Focus on operational leverage and productivity improvements
Future Projections • Service EBITDA Margins: Estimated between 18% to 22% • Net Profitability Goal: Aiming for late FY25 or early FY26 • Capacity Expansion: Ongoing investments and potential acquisitions
Employee Stock Ownership Plan (ESOP) • Stock Options Granted: Two million this year • Ungranted Options: 39 million total (24 million time-based, 15 million performance-based)
Conclusion • Positive Outlook: Fourth consecutive quarter of revenue growth, ongoing investments in capacity expansion, and a strong operational foundation.
Delhivery Limited Q4 FY23 Earnings Call Summary
Earnings Call Overview • Date: May 20, 2023 • Key Executives: CEO Sahil Barua, CBO Sandeep Barasia, CFO Amit Agarwal • Transcript available on investor relations website
Financial Performance • Q4 FY23 Revenue: ₹1,860 crores (2% increase from Q3) • Shipments: 180 million (5.6% growth from previous quarter) • Adjusted EBITDA: Achieved break-even; improved from negative 12.5% in Q1 to 0.3% in Q4 • Cross-Border Services Revenue: Declined by 14% to ₹57 crores • Cash Reserves: Over ₹5,500 crores
Business Segments • Express Business: Constituted 63% of total revenues • PTL Business: Grew to 18% of revenues with 24% quarter-on-quarter growth
Strategic Initiatives • Partnerships: Positive implications from SHEIN's partnership with Reliance • ONDC Initiative: Gradual volume growth noted • Investment in Vinculum: Enhances order and warehouse management
Market Trends and Projections • E-commerce Growth: Projected annual growth of 18-25% over the next five years • Shift to Third-Party Logistics: Driven by rising self-logistics costs and marketplace priorities
Operational Insights • Customer Churn: Voluntary churn of less profitable customers may positively impact future revenues • Capacity Expansion: Amazon's growth may indicate overall industry expansion, not a direct threat to Delhivery
Cost Management • Corporate Overheads: Currently at 10.7% of revenue, targeted reduction to 3.5-5% long-term • Depreciation Expenses: Rising due to capital expenditures; aligned with growth strategy
Future Outlook • Focus on maintaining margins, improving adjusted EBITDA, and thoughtful expansion • Emphasis on high service levels and enhancing profitability
Closing Remarks • Strong quarter performance with optimism for FY24, highlighting continued margin improvement and consolidation in core businesses.
Delhivery Ltd Q3FY23 Earnings Call Summary
Earnings Call Overview • Date: February 11, 2023 • Transcript issued on February 16, 2023 • Key Participants: CEO Sahil Barua, CBO Sandeep Barasia, CFO Amit Agarwal • Available on investor relations website
Financial Performance • Revenue: ₹1,822 crores (1.5% increase from previous quarter) • Adjusted EBITDA: Improved from -7% to -3.7% • Shipments: 170 million (5.6% growth in e-commerce express delivery) • Express Parcel Revenue: ₹1,200 crores (7% quarter-on-quarter growth) • PTL Revenue: Declined to ₹277 crores from ₹293 crores in Q2 • Supply Chain Services: Grew to ₹178 crores (33% year-on-year increase)
Operational Highlights • Integration of SpotOn network progressing well • Focus on optimizing network footprint and pricing strategies • Strong operational momentum in PTL business • New client acquisitions in supply chain services
Market Outlook • Anticipated conservative growth of 15-20% in shipment volumes for 2023 • Competitive intensity in PTL market remains low • Plans to open new truck terminals in Mumbai and Bangalore
Cost Management and Efficiency • Cost optimization improvement of approximately ₹29 crores • Utilization of automated weighing machines to enhance yield • No current need to lower prices due to cost structure advantages
Strategic Initiatives • Acquisition of Algorhythm Tech aimed at enhancing supply chain services • Focus on M&A strategy to complement geographic and customer capabilities
Future Projections • Expected improvements in EBITDA margins as volumes grow • Continued emphasis on operational efficiencies and technology advancements • Monitoring of market share and service quality improvements
Conclusion • Delhivery remains confident in growth trajectory and operational efficiency, with a focus on maintaining cost leadership and enhancing service quality.