India`s Delhivery posts first-ever profit on back of festive season demand
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Indian logistics firm Delhivery posted its first-ever quarterly profit since listing on Friday, helped by healthy demand for online shopping during the festive season.
Consolidated profit for the three months ended Dec. 31 was 117.1 million rupees ($1.41 million) compared with a loss of 1.96 billion rupees a year earlier, the company said in an exchange filing.
"We are satisfied that network quality remained robust even through the peak season," said Sahil Barua, MD & CEO of the Gurugram-based company.
Analysts had said the company, which delivers orders for Amazon and Walmart-owned Flipkart, would achieve profit after tax break-even by the second half of fiscal year 2025.
Revenue from the company's express parcel services, which contributes more than half to the total, climbed 21% year-on-year.
The company, which also operates the Part Truckload and Truckload businesses, saw its total income rise 21% to 23.25 billion rupees.
Total expenses were up 7.7%, with freight, handling and servicing costs jumping 11.5%.
Rival Blue Dart Express reported a marginal rise in quarterly profit last week, driven by a recovery in demand during the festive season.
Delhivery also approved a scheme of amalgamation for the merger of its units Spoton Logistics and Spoton Supply Chain Solutions into and with the company.
Shares of Delhivery closed 0.9% up ahead of the results.
($1 = 82.8870 Indian rupees)
