Delhivery has announced its financial results for the second quarter, showing mixed performance with revenue growth but a wider net loss.

Financial Highlights

For Q2, Delhivery reported:

• Revenue from services of ₹2,559.00 crore, a 16.8% year-over-year increase from ₹2,190.00 crore in the same quarter of the previous year.
• Net loss of ₹504.00 million, significantly higher than the ₹102.00 million loss in the same period last year.
• EBITDA of ₹682.00 million, up from ₹573.00 million in the previous year, with the EBITDA margin slightly improving to 2.66% from 2.62%.

Business Segment Performance

Express Parcel

• Shipment volumes reached 246 million, a 32% year-over-year growth from 185 million in the previous year's quarter.
• Revenue increased by 24% year-over-year to ₹1,611.00 crore.
• Service EBITDA margin stood at 15.3%, slightly higher than the 15.1% in the same quarter last year.

Part Truck Load (PTL)

• Tonnage grew by 12% year-over-year to 477,000 MT.
• Revenue increased by 15% year-over-year to ₹546.00 crore.
• Service EBITDA margin improved to 8.5% from 2.9% in the corresponding quarter of the previous year.

Ecom Express Integration Update

Delhivery completed the acquisition of Ecom Express on July 18. The integration process is underway with the following updates:

• Volume manifestation at Ecom ceased during Q1, and exit of non-express businesses is in progress.
• Network rationalization plan is completed, with net retention of 7 facilities for long-term Delhivery usage.
• Integration cost incurred in Q2 was ₹90.00 crore, with total integration costs expected to remain within the previously guided ₹300.00 crore.

New Initiatives

Delhivery is expanding its service offerings:

• Rapid: 20 active stores in 3 cities, with plans to expand to 25 stores. The company has signed its first B2B client, with operations going live in NCR in October.
• Direct: Currently active in Ahmedabad, NCR, and Bengaluru, with plans to launch in 4 more cities.

Freight Index One Launch

In a separate announcement, Delhivery launched the Freight Index One platform, aiming to bring transparency to the Indian logistics market. This open platform provides historical, current, and forward Full Truckload (FTL) pricing estimates for major trucking lanes and vehicle types.

Rohan Anand, Head of Data Science at Delhivery, stated, "Our aim is to bring greater transparency and structured information to India's logistics market at a lane level."

Kapil Bharati, Chief Technology Officer, added, "Providing access to a wide variety of stakeholders will allow efficient price benchmarking and enable customers to better plan budgets and negotiate rates using market-wide data."

The launch of Freight Index One demonstrates Delhivery's commitment to innovation and improving efficiency in the logistics sector.

Delhivery's Q2 results show revenue growth and improved EBITDA, despite a wider net loss. The company continues to focus on strategic initiatives like the Ecom Express integration and the launch of Freight Index One, aiming to strengthen its position in the Indian logistics market.

Delhivery , India's largest fully integrated logistics service provider, has launched a groundbreaking initiative aimed at enhancing transparency within India's logistics sector. The company introduced the Freight Index One, a new platform designed to provide comprehensive freight pricing information for various stakeholders in the logistics industry.

Key Features of the Freight Index One

The Freight Index One platform offers several important features:

• Historical, current, and forward Full Truckload (FTL) pricing estimates
• Coverage for major trucking lanes in India
• Pricing for both open and closed container vehicle types
• Data modeled from nearly a decade of market intelligence and Delhivery's internal data

Addressing Market Gaps

Rohan Anand, Head of Data Science at Delhivery, highlighted the significance of this initiative, stating, "India currently does not have equivalents to global indices like the Cass Freight Index and Freightos Baltic Index (FBX)." This gap has led to several challenges in the logistics sector, including:

• Routing issues
• Uncertainty about costs, especially during periods of seasonal demand
• Significant information asymmetries

The Freight Index One platform aims to tackle these challenges by providing reasonable estimates of freight pricing, which is crucial for reducing overall logistics costs and increasing revenues for both transporters and shippers.

Comprehensive Data Modeling

The platform incorporates a wide range of factors in its pricing estimates, including:

• Supply fluctuations
• Seasonality
• Route viability
• Economic indicators such as fuel prices, toll rates, and taxes

This comprehensive approach ensures that the pricing estimates are as accurate and relevant as possible.

Collaborative Approach

Delhivery is taking a collaborative approach with this initiative. Kapil Bharati, Chief Technology Officer at Delhivery, explained, "Through Freight Index One, we plan to enable efficient price benchmarking and help customers plan budgets using market-wide data."

This open approach is expected to:

• Allow for more informed rate negotiations
• Enable better budget planning for customers
• Facilitate price benchmarking across the industry

Participation and Access

Industry participants, including transporters, fleet owners, shippers, and logistics players, can access the Freight Index One by visiting https://one.freightindex.in/ .

About Delhivery

Delhivery continues to solidify its position as a leader in India's logistics sector. Some key statistics about the company include:

The company offers a wide range of logistics services, including express parcel transportation, PTL freight, TL freight, cross-border, supply chain, and technology services.

As Delhivery continues to innovate and expand its offerings, the launch of the Freight Index One represents a significant step towards bringing greater transparency and efficiency to India's logistics market. This initiative has the potential to reshape how pricing and planning are conducted in the industry, benefiting a wide range of stakeholders from individual transporters to large-scale shippers.