Delhivery stock drops 14% on inflation concerns, flat festive shipments

Delhivery stock dropped 14% to Rs 479 per share on the BSE on October 20 after the logistics company said it anticipates moderate growth of shipment volumes for the rest of FY23 due to high inflation, average user spends, and total active shoppers remaining flat or declining during the ongoing festive season. Shipment volumes in its supply chain services and truckload businesses declined in the September quarter; growth to remain moderate for the rest of FY23, according to the company.

Delhivery is a significant participant in third-party e-commerce logistics, thus the company’s forecast for flat holiday sales and moderate growth in FY23 is expected to have an effect on the prognosis for the overall e-commerce sector.

 Delhivery stated that shipping volumes in its supply chain services (SCS) and truckload (TL) businesses decreased sequentially as a result of seasonality in customers’ activities in a letter to shareholders submitted to the markets regarding its performance in the September quarter.

 The price of the company’s shares is currently less than its IPO issue price of Rs 487 per share.

“However, compared to a year ago, both firms have displayed significant double-digit growth. Despite a global recession and a drop in yields for both air and ocean freight, our cross-border company also demonstrated stable growth, the letter continued.

However, the business did not provide any operational indicators, stating that these would be provided when the board had approved the quarter’s audited results.

Also sluggish in the first two months of the quarter was industrial output. Due to our structural cost advantages, network size, and capacity investments, our market position remains robust despite the difficult market conditions, the business claimed.

“As we move forward, we continue to monitor market sentiment. We expect future mega-gateway and sorter decisions to be taken only by early FY24 as we have made adequate capacity investments in FY22 and early FY23 to sustain our present rate of growth, it continued.

Delhivery’s revenue from operations had dropped 16 percent sequentially to Rs 1,746 crore in the June quarter (Q1) at a time when the e-commerce industry, which makes up the biggest revenue chunk, saw sales dip amid rising inflation.


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