Delivery witnessed its worst day since listing, as its shares tanked 17.05 per cent on Thursday’s trades to ₹ 463.85 apiece on the National Stock Exchange (NSE). Therefore, its shares are trading below their IPO price of ₹ 487 apiece. This happened after the logistics and supply-chain company said that it expects moderate growth in shipment volumes through the rest of the financial year 2023.
“While the festive season sale surge in shipment volumes will spill over to Q3FY22 as well, we anticipate moderate growth in shipment volumes through the rest of the financial year,” the company said in an exchange filing.
It said that the market sentiment in the September quarter was broadly unchanged as compared to the June quarter. According to industry reports, consumer discretionary spending remained muted due to high levels of inflation. Average user spending and total active shoppers remained flat or muted during the ongoing festive season.
Delhivery is one of the major players in third-party e-commerce logistics. Its guidance on flat festive sales and moderate growth in FY23 is expected to have an impact on the outlook for the broader e-commerce segment. It said that shipment volumes in its supply chain services
(SCS) and truckload (TL) businesses declined sequentially, owing to seasonality in customers’ businesses.
The company however mentioned in the exchange filing that its business is on a path to recovery and that it recorded high teen growth in freight tonnage handled on a quarter-on-quarter basis. Further, it said that it has added 200+ new customers in the September quarter, driven by improved service metrics. It expects volumes to continue to show a gradual scale-up through FY23.
Written by Simran Bafna
