Delhivery Shares Fall
14% on Inflation Worries, Festive Shipments Flat
fell 14% to Rs 479 per share on BSE on October 20 after the logistics company said.
It expected shipments for the rest of FY23 due to high inflation, average user spending & fall in total active shoppers’ volume will grow moderately for ongoing festivals.
The company’s guidance for flat festive sales and modest growth in FY23 is expected to weigh on the outlook for the broader e-commerce sector.
Delhivery said shipments in its Supply Chain Services and Truckload businesses were down sequentially due to seasonality in customer business.
The company’s shares are currently trading below its IPO price of Rs 487 per share.
"Despite the slowing global economy and lower earnings from air and ocean freight, our cross-border business also showed steady growth"
But the company did not share any operational metrics, saying it would share the numbers once the board approved the quarterly audit results.
Our market position remains strong due to our structural cost advantage, network scale and capacity investments,
” the company said.
Delhivery’s operating income fell 16% quarter-on-quarter to Rs 1,746 crore, while sales in the largest e-commerce segment by revenue fell amid rising inflation.