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Shares of logistics firm Delhivery Ltd. gained over 2% on Friday, October 3, in response to its business update for the month of September.
Delhivery, in an exchange filing, stated that it had shipped goods worth ₹19,500 crore in September, as India geared up for this year's festive season.
It has also processed more than 104.4 million ecommerce and freight shipments in the month. This includes serving a record 19,100 clients in a single day and 6.2 million ecommerce and freight shipments fulfilled
in one day.
Delhivery's fastest delivery took place in Bengaluru within five minutes, while the farthest courier delivery was from Bhesan, Gujarat to Siaha, Mizoram, covering a distance of 3,690 kilometers, the company said.
Demand for courier service is likely to remain high as most people will continue to exchange gifts through late October till Diwali ends.
To scale up its operations, Delhivery had announced plans in April to acquire rival startup Ecom Express for approximately ₹1,407 crore. The Competition Commission of India (CCI) had approved the move to get a controlling stake in June this year.
“The proposed combination comprises the acquisition of at least 99.44% of the equity and preference shareholding (on a fully diluted basis) of Ecom Express Ltd by Delhivery Ltd,” the antitrust body had said in a statement.
During the June quarter of the current financial year, Delhivery reported a strong performance with its consolidated net profit rising 67% year-on-year to ₹91 crore, compared to ₹54 crore in the same quarter last year. Revenue rose 6% to ₹2,294 crore, supported by strong volume growth in its key business segments.
Operating profit (EBITDA) jumped by 53% from last year to ₹149 crore, as the company benefited from efficiencies driven by higher scale. EBITDA margin improved to 6.5% from 4.5% a year earlier.
The express parcel segment clocked shipment volumes of 208 million, marking a 14% year-on-year growth. Revenue from this vertical grew 10% to ₹1,403 crore.
Shares of Delhivery are trading 0.6% higher on Friday at ₹436.95. The stock remains below its IPO price of ₹487.
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