SUMMARY
- Shares of Delhivery surged 6.8% to INR 389.35 during the intraday trading today, a day after the company announced the launch of its largest mega-gateway in Bhiwandi
- Delhivery said the new trucking terminal is one of the largest in the country and will enable it to increase capacity for Mumbai and the West Zone’s large and SME freight shippers
- Shares of Delhivery, which posted nearly 60% YoY decline in its net loss to INR 102.9 Cr in Q2 FY24, are trading 10% higher year to date
Shares of Delhivery surged 6.8% to INR 389.35 during the intraday trading on Thursday (December 21), a day after the company launched its largest mega-gateway in Bhiwandi, one of India’s largest trucking terminals.
However, the shares shed some of the gains and were trading at INR 388.15 on the BSE at 2.30 PM IST.
The logistics unicorn said in an exchange filing on Wednesday that its newly launched Bhiwandi trucking terminal is built over a land area of 12,00,000 sq ft. It combines automated hub, sortation, returns, and freight operations with the capability to handle Delhivery’s parcel and part truckload freight volume simultaneously.
The facility’s automation system, developed and deployed by Falcon Autotech, comprises 1.8 km of integrated double-deck cross-belt sorters with over 5 kms of material conveyance systems. It is equipped to process over 32,000 shipments and 17,000 freight units per hour, said Delhivery in its statement.
“Our expanded Bhiwandi gateway will enable us to increase capacity for Mumbai and the West Zone’s large and SME freight shippers while maintaining world-class service reliability and efficiency,” said Sahil Barua, MD and CEO of Delhivery.
Delhivery claims to currently have a nationwide network covering over 18,600 pin codes. Its logistics services include express parcel transportation, PTL freight, TL freight, cross-border, supply chain, and technology services.
The logistics startup posted a net loss of INR 102.9 Cr in Q2 FY24, which declined 59.5% year-on-year (YoY). Adjusted EBITDA loss reduced 90% YoY to INR 13 Cr during the quarter.
ICICI Securities said in a recent research report that from Q3 FY24, Delhivery is expected to see a reversion to adjusted EBITDA profitability on a sustainable basis given ecommerce shipment volumes are trending upwards again after a lull of a year.
Currently, Delhivery’s shares are trading over 10% higher year to date.
