Shares of Delhivery Ltd reached the highest level 617 each since it was listed on the BSE in Thursday’s trading session. The stock, which made its debut on domestic stock exchanges last week on Tuesday, May 24, 2022, has gained over 13% in a week.
The Gurugram-based firm announced its first quarterly results since listing on Monday and reported a net loss of Rs. 119.8 crore in the March 2022 quarter. Although, delhiveryRevenue from operations doubled 2,071 crore during the period from 1,031 crore a year ago.
It posted the adjusted Ebitda (earnings before interest, taxes, depreciation and amortization) of 72 crore in the three months ended March. The company expects cash flow to be positive in the next six to eight quarters.
“Investors are not uncomfortable with companies that are operationally profitable. It was important to achieve operational profitability and sustain revenue growth,” said Sahil Barua, chief executive officer (CEO) of the logistics startup, after the Q4 results.
Delhivery shares up 25% above its IPO issue price 487 per. The initial public offering (IPO) of the supply chain company was subscribed 1.63 times on the last day of subscription. Delhivery Express provides a full range of logistics services including parcel delivery, heavy cargo delivery and warehousing.
“Technology stocks fell by more than 20% in the period between the filing of our initial draft document on our IPO, so we revised our pricing,” Baruah told Bloomberg in an interview this week. “We decided that we would have moderately priced shares that would increase rather than decline in listing.”
Delhivery is grabbing market share by spending its money on buying smaller rivals. It will continue to pursue acquisitions with the proceeds of Initial Public Offering (IPO)Barua said.
Express package shipments grew 101% in Q4, above the industry’s 40% growth. Simultaneously, Delhivery said it has broadened its revenue base, with express parcel service accounting for 58% of sales and part-truckload (PTL) freight accounting for 24% of revenue in FY22 .