STARTUP-STORIES

Delhivery Shares Plunge 10% Following INR 69 Cr Loss in Q4

SUMMARY

Delhivery's Q4 results were mixed: net loss narrowed YoY but fell compared to the prior quarter. Revenue grew YoY but dipped QoQ. Despite this, analysts are optimistic due to Delhivery's cost-cutting measures, e-commerce sector growth projections, and healthy financial position.

Brokerages like Prabhudas Lilladher and Emkay Global have buy ratings on Delhivery, with target prices implying significant upside potential. They expect Delhivery to maintain market share and grow volumes in the long run.

Delhivery's Q4 FY24 results were a mixed bag, causing their stock price to dip significantly. Here's a breakdown of the key points:

Financials:

Loss Narrowed YoY: Delhivery reported a net loss of ₹96.2 crore for Q4 FY24, narrower than the ₹117.5 crore loss in the same quarter last year. However, it reflects a loss compared to the previous quarter's profit of ₹52.97 crore.

Revenue Up YoY: Revenue grew 9% YoY to ₹1,878.77 crore in Q4 FY24, but fell over 7% compared to the previous quarter.

Expenses Increased: The company's expenses rose to ₹2,257.2 crore in Q4 FY24, contributing to the quarterly loss.

Analyst Optimism: Despite the Q4 results, brokerages like Prabhudas Lilladher and Emkay Global remain bullish on Delhivery. They anticipate a 15-20% growth in the e-commerce sector for FY25, potentially benefiting Delhivery.

Cost Optimization Focus: Delhivery's focus on cost reduction through renegotiating contracts and optimizing its infrastructure could lead to improved profitability in the long run.

Debt-Free Position: The company remains debt-free with a strong working capital position, providing financial stability for future growth.

While Delhivery's Q4 results might appear concerning, analysts remain optimistic about the company's future. The focus on cost optimization, diversification into new service areas, and a healthy financial position suggest Delhivery is well-positioned to navigate market challenges and achieve sustainable profitability in the long term. However, investors are advised to conduct their own due diligence before making any investment decisions.