India's Delhivery swings to Q1 profit on strong growth in key segments

Mahindra Logistics

02/08/2024 12:48

BENGALURU, August 2 (Reuters) - Logistics firm Delhivery  DELH.NS  swung to a first-quarter profit on
strong growth in its supply chain, part truckload and express parcel services. 
    The company reported a consolidated profit of 543.6 million rupees ($6.5 million) on Friday, from a loss of
894.8 million rupees a year ago.
    It had posted a narrower loss of 684.7 million rupees in the March 2024 quarter. 
    For further earnings highlights, click: (Full story) 
        
  
    KEY CONTEXT
Delhivery reported revenue growth in three key segments - supply chain services (SCS), the part truckload (PTL)
segment, which handles smaller cargo, and the express parcel segment, which accounts for more than half of the
overall revenue - due to a mix of new clients and summer demand.
    "Robust growth in PTL and SCS businesses and stable growth in Express Parcel continues and have enabled
improvement in profitability as well," Managing Director and CEO Sahil Barua said.
    Rival Mahindra Logistics  MALO.NS  reported a sixth straight quarter of loss hurt by higher costs, while Blue
Dart Express's  BLDT.NS  expenses overrode recovering volumes, leading to its quarterly profit fall.  
       
    
    PEER COMPARISON
                                  Valuation (next   Estimates (next 12            Analysts' sentiment
                                    12 months)                 months)  
                       RIC        PE      EV/EBIT  Revenue   Profit     Mean      # of      Stock to       Div
                                          DA       growth %  growth %   rating*   analysts  price          yield
                                                                                            target**       (%)
 Delhivery              DELH.NS   363.41    43.93   17.34        -      BUY             21      0.79            -
 Mahindra Logistics     MALO.NS    55.85    11.96   13.95        -      SELL            11      1.14         0.49
 Blue Dart Express      BLDT.NS    47.25    20.27   11.59      27.69    HOLD             5      1.03         0.31
 VRL Logistics          VRLL.NS    30.31    11.65   13.52      54.28    BUY              9      0.83         0.87
 * The mean of analyst ratings standardised to a scale of Strong Buy, Buy, Hold, Sell, and Strong Sell
** The ratio of the stock's last close to analysts' mean price target; a ratio above 1 means the stock is trading
above the PT
    
    
    APRIL-JUNE STOCK PERFORMANCE 
    
    
    
-- All data from LSEG
-- $1 = 83.76 Indian rupees
    


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 (Reporting by Anisha Ajith in Bengaluru)
 ((anisha.ajith@thomsonreuters.com;))