News Update

On account of inflationary concerns logistics company Delhivery projects moderate growth, while stock prices fall 15%

• ByStartupStory     |    October 21, 2022

Delivery experienced its worst day since going public on Thursday, when its shares plunged 17.05% to 463.85 per share on the National Stock Exchange (NSE). As a result, its shares are currently trading below their 487-per-share IPO price. This took place after the logistics and supply-chain organisation stated that it anticipates a mild increase in cargo volumes for the remainder of the 2023 fiscal year. 

Although the spike in shipping quantities from the holiday season sales will continue into Q3FY22, the company predicted moderate growth in shipment volumes for the remainder of the fiscal year in an exchange filing.

According to the report, there was little change in the market’s mood between the June and September quarters. Industry studies claim that high levels of inflation kept consumer discretionary spending at a low level. During the recent holiday season, average user expenditure and the total number of active shoppers were flat or barely changed. 

One of the key participants in third-party e-commerce logistics is Delhivery. The projection for the larger e-commerce division is anticipated to be impacted by its guidance on flat holiday sales and moderate growth in FY23. It claimed that supply chain services for its shipments were high. 

Due to the seasonality of their customers’ companies, (SCS) and truckload (TL) businesses experienced consecutive declines.

However, the company noted in the exchange filing that its operations are improving and that it experienced high teen growth in freight tonnage handled from quarter to quarter. Additionally, it claimed that better service metrics were the reason for the addition of 200+ new clients in the September quarter. Through FY23, it anticipates that volumes will continue to demonstrate a progressive scale-up.

 

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