Shares Drop After Q3 Miss; Brokerages Cut FY24-25 Estimates

Shares of Delhivery Ltd. declined after its quarterly earnings lagged the consensus view.

“Delhivery reported a miss driven by weak PTL volumes and a related loss shipment expense uptick that negated a higher-than-expected improvement in cost structure,” Kotak Institutional Equities said in a note.

The logistics service provider reported a 9% miss in revenues and a “more relevant” 6% miss in margin-earning revenues that include express parcel and part-truckload businesses, the brokerage added.

Delhivery Q3 Consolidated Earnings (Year-on-Year)

• Revenue from contracts with customers fell 9% to Rs 1,823.84 crore vs. Rs 1,995.04 crore. (Bloomberg Estimate: Rs 2,056 crore)

• Net Loss widened to Rs 195.65 crore vs net loss of Rs 126.52 crore. (Bloomberg Estimate: Rs 169.43 crore)

• Ebitda Loss stood at Rs 73.27 crore vs. Ebitda profit of Rs 54.18 crore.

The scrip was trading 2.16% lower at Rs 308.65 as of 12:13 p.m., after declining as much as 5.5% intraday. The benchmark Nifty 50 was trading 0.58% lower.

The total traded quantity so far in the day stood at four times the 30-day average.

Of the 18 analysts tracking the stock, 13 maintained ‘buy,’ three suggested ‘hold,’ and two recommended ‘sell.’ The 12-month return potential of the stock stood at 35%, according to Bloomberg data.