India's Delhivery posts narrower fourth-quarter loss

Container of India

17/05/2024 13:42

BENGALURU, May 17 (Reuters) - Logistics firm Delhivery  DELH.NS  posted a narrower loss on
Friday, aided by improved volume growth in its supply chain and truckload services.
    The company reported a consolidated loss of 684.7 million rupees ($8.21 million) for the quarter
ended March 31, compared with a loss of 1.59 billion rupees a year ago.
    This however came above analysts' estimated loss of 258.6 million rupees.
    Total income rose 13.5% to 21.95 billion rupees 
    For further results highlights, click [full story] 
    
   KEY CONTEXT
Logistics companies have been facing increased competition as more e-commerce platforms are moving
towards developing in-house solutions instead of approaching third party logistics to reduce costs.
    Analysts expected to see volume growth for B2B businesses in the fourth quarter, but were wary of
price realisations to keep up with the volume growth.
    Delhivery, according to analysts, is better placed in this competitive sector on the back of its
stronger reach in smaller cities and lower-cost advantage.
    Peer Container Corporation of India  CCRI.NS  on Thursday reported a higher fourth-quarter profit
aided by volume growth in its export/import segment.
    
    
   PEER COMPARISON 
    
                                  Valuation (next  Estimates (next 12          Analysts' sentiment
                                    12 months)           months)        
                       RIC        PE      EV/EBIT  Revenue growth(%)    Mean      # of      Stock to
                                          DA                            rating*   analysts  price
                                                                                            target**
 Delhivery Ltd          DELH.NS   25016.    49.90         19.26         Buy             20      0.84
                                      67                                                    
 Blue Dart Express      BLDT.NS    40.31    18.54         9.85          Hold             6      0.97
 Ltd                                                                                        
 Container              CCRI.NS    39.82    24.60         16.74         Hold            13      1.16
 Corporation of India                                                                       
 Ltd                                                                                        
 Mahindra Logistics     MALO.NS    61.03     9.65         15.18         Hold            11      0.99
 Ltd                                                                                        
 
    JANUARY-MARCH STOCK PERFORMANCE   

    -- All data from LSEG
    -- $1 = 83.3514 Indian rupees
    


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 (Reporting by Anisha Ajith in Bengaluru; Editing by Varun H K and Vijay Kishore)
 ((anisha.ajith@thomsonreuters.com;))