Delhivery Limited · NSE:DELHIVERY
Delhivery — BofA Flagship Conference 2023
30 slides from Delhivery's conference presentation, Oct 30, 2023
Slide 1: Intimation of BofA Flagship Conference under Regulation 30
Date: October 30, 2023 BSE Limited National Stock Exchange of India Limited Phiroze Jeejeebhoy Towers, Exchange Plaza, C-1, Block G, Dalal Street, Bandra Kurla Complex, Bandra (E), Mumbai – 400 001 India Mumbai – 400 051 India Scrip Code: 543529 Symbol: DELHIVERY Sub: Intimation under Regulation 30
Slide 2: Delhivery
Slide 3: Safe harbour and disclaimer
Safe harbour and disclaimer This Presentation is prepared by Delhivery Limited (“Company”) and is for information purposes only without regards to specific objectives, financial situations or needs of any particular person and nothing in it shall be construed as an invitation, offer, solicitation, r
Slide 4: We aim to build the Operating System for commerce in India
We aim to build the Operating System for commerce in India 3
Slide 5: India's logistics market is large and highly fragmented
India’s logistics market is large and highly fragmented Direct Logistics Spend (1) Direct Logistics Share of Top 10 Per Capita Direct ($Bn) Spend / GDP (1) (%) Organized Players Logistics Spend($) (2) (%) 200 8% ~1.5% 150 1,470 7% ~15% 4,460 - • Source: RedSeer report 1,470 10% ~7-10% 1,050 1. As of
Slide 6: Massive TAM
Massive TAM Express Part Truckload Supply Chain Cross-Border Parcel (1) Truckload Freight (1) Services (1) Air (1) Freight (1) $10-12 Bn $26 Bn $163 Bn $109 Bn $8 Bn+ ➢ E-commerce express ➢ Express PTL ➢ National & regional ➢ End-to-end supply ➢ Air express parcel parcel chain solutions with ➢ Air f
Slide 7: India's largest integrated logistics platform
India’s largest integrated logistics platform(1) ₹7,224 Cr / ₹1,930 Cr 44.6% (1.3%) FY23 / Q1 FY24 FY19 – 23 Revenue CAGR(2) Q1 FY24 Adjusted EBITDA margin Revenue from services 182 Mn 343K Tons 18,530 (YoY:19.2%; 1.2% QoQ growth) (YoY: 43.7%; 8.0% QoQ growth) Pin-codes covered(3) Express parcels sh
Slide 8: Revenue is diversifying rapidly
Revenue is diversifying rapidly Revenue from services(1) 7,224 7,054 (₹ Cr) 8% 11% 4% 6% PTL revenue impacted 24% 16% due to SpotOn related integration issues 3,635 11% 2,775 6% 8% 11% 13% 63% 8% 59% 1,654 8% 1,022 70% 741 5% 70% 495 - 83% 222 97% 89% 1 17 60 98% T T 97% T T T T T FY12 FY13 FY14 FY1
Slide 9: Strength of our operations
Strength of our operations Differential Scale → Better unit economics Lower volatility in volumes → higher network utilization Express Parcel(5) 1,600 600 4% Load (K Tons)(1) 500 Load (K Tons)(1) 1,200 1,101 400 300 -13% 800 -28% 200 1,000 -17% 100 400 663 - 360 Q1 Q2 Q3 Q4 0 Delhivery (FY23) Expres
Slide 10: Adjusted EBITDA
Adjusted EBITDA Adjusted EBITDA(1) (₹ Cr) - - - - - - - - - (58) (26) 74 3.7% 81 3.9% (217) (125) (67) 6 (25) 0.3% (1.6%) (1.3%) (3.8%) (3.7%) (7.0%) (12.5%) Q1 FY22 Q2 FY22 Q3 FY22 Q4 FY22 Q1 FY23 Q2 FY23 Q3 FY23 Q4 FY23 Q1 FY24 FY22 FY23 9 (1) Q1 FY22 figures are on proforma basis
Slide 11: Delhivery: Investment case
Delhivery: Investment case 1 $200Bn+ addressable market - large and highly fragmented 2 Largest integrated logistics platform with a full range of supply chain services 3 Unified world class network infrastructure, inter-operable across business lines and services 4 Asset-light business model with p
Slide 12: Delhivery is at the cross-section of several growth drivers
Delhivery is at the cross-section of several growth drivers(1) INFRASTRUCTURE TECHNOLOGY & DATA SCIENCE Large real estate footprint | Leveraging Data science, ML & AI | Proprietary India’s regulatory reforms & tech platform | Cutting edge infra-development | General capital engineering & automation
Slide 13: Q1 FY24 Update
Q1 FY24 Update 12
Slide 14: Quarterly highlights
Quarterly highlights •1 Express: Steady shipment volume in a seasonally weak quarter; 19% YoY growth in volumes •2 PTL: Strong growth momentum continues in Q1 (8% QoQ over seasonally strong Q4), service levels continue to be consistently robust, price-revisions and churn of low-margin customers cont
Slide 15: Q1 FY24 performance
Q1 FY24 performance I Revenue from services(1) I I Express Parcel revenue Express Parcel shipments (₹ Cr) I (₹ Cr) YoY: 14% (Mn) I YoY: 11% YoY: 19% r QoQ: 4% I I I I I I l 1,051 1,177 r QoQ: 2%1,202 152 180 rQoQ: 1% 182 1,930 I 1,860 I 1,746 I 11% 10% I 7% I 14% 6% I I 7% 18% 18% I I 15% I I Q1 FY2
Slide 16: Q1 FY24 performance
Q1 FY24 performance Revenue from services(1) TL revenue Supply Chain Services revenue (₹ Cr) YoY: 11% (₹ Cr) YoY: 7% (₹ Cr) YoY: (13%) l 236 QoQ: 10% r QoQ: 4% QoQ: 20% 206 r 188 1,930 1,860 1,746 122 131 11% 109 10% 7% 14% 6% 7% 18% 18% 15% Q1 FY23 Q4 FY23 Q1 FY24 Q1 FY23 Q4 FY23 Q1 FY24 Cross Bord
Slide 17: Adjusted EBITDA
Adjusted EBITDA ₹ Cr Q1 FY23 Q2 FY23 Q3 FY23 Q4 FY23 Q1 FY24 FY23 :I :I :I Service EBITDA refers to Revenue from customers(1) 1,746 1,796 1,824 1,860 1,930 :I :I 7,225 :I cash EBITDA generated . . . . E :I : l ••••••••••••••••••••••••••••••••••• I I : I after accounting for direct : : I I : I variab
Slide 18: Q1 FY24: Drivers of adjusted EBITDA movements vs Q4 FY23
Q1 FY24: Drivers of adjusted EBITDA movements vs Q4 FY23 ₹ Cr Remarks Q4 FY23 Adjusted EBITDA (A) 6 Incremental revenue in Transport (Express and PTL) 44 Incremental gross profit in Transport (Express and PTL) ~17 Prior to 1Q specific items listed below (B1) (-) Impact of annual wage increments (B2)
Slide 19: Cost Drivers – Q1 FY24 vs Q4 FY23
Cost Drivers – Q1 FY24 vs Q4 FY23 I I I I ₹ Cr I I I Q1 FY22 I I I Q1 FY23 I I I Q4 FY23 r • I Q1 FY24 FY23 I I I I :■ J I I Freight, Handling and Servicing Cost(1,2) I 868 I 1,453 I 1,372 LI 1,438 l 5,669 III ~---------------------------------------------------------------------~-------------------
Slide 20: Adjusted EBITDA Bridge
Adjusted EBITDA Bridge Adjusted EBITDA ₹ Cr Q1 FY23 Q4 FY23 Q1 FY24 FY23 Remarks Total revenue from customers 1,746 1,860 1,930 7,225 Less: Freight handling and servicing cost 1,453 1,372 1,438 5,669 Less: Change in inventory of traded goods 0 0 0 2 Less: Employee benefit expense 350 357 353 1,400 L
Slide 21: Appendix
Appendix 20
Slide 22: Quarterly financial performance
Quarterly financial performance Income (₹ Cr) Q1 FY23 Q4 FY23 Q1 FY24 Q-o-Q% Y-o-Y% FY23 Revenue for services (A) 1,746 1,860 1,930 4% 11% 7,224 Revenue from traded goods (B) 0 0 0 - - 2 Revenue from customers (A+B) 1,746 1,860 1,930 4% 11% 7,225 Other income 49 75 101 36% 108% 305 Total income 1,79
Slide 23: Balance sheet
Balance sheet ₹ Cr ₹ Cr Equity and Liabilities Mar ‘22 Sep ‘22 Mar ‘23 Assets Mar ‘22 Sep ‘22 Mar ‘23 Total equity 5,957 9,386 9,177 Non – current assets Non – current liabilities Non – current cash equivalents(1) 692 447 670 Borrowings 118 118 114 Property, plant and equipment (Incl CWIP) 681 882 8
Slide 24: Working capital position improving YoY
Working capital position improving YoY Net Working Capital (Days) - 43 106 - 73 - 47 - 37 - 38 87 78 77 74 40 37 39 35 33 FY19 FY20 FY21 FY22 FY23 ■ Receivable days ■ Payable days - Net Working Capital Days (Receivable days – Payable days) Receivable days = (Trade receivable + Unbilled receivables)
Slide 25: Strong liquidity position
Strong liquidity position Debt to Equity ₹ Cr Mar ‘21 Mar ‘22 Sep ‘22 Mar ’23 Term loan 199 233 246 199 Working capital loan 84 120 5 0 Debt (excludes CCPS) (A) 283 353 251 199 Cash and cash equivalents1 (B) 1,998 2,512 5,752 5,508 Net debt (A-B) (1,715) (2,159) (5,502) (5,309) Networth (C) 2,837 5,
Slide 26: Cash flow summary
Cash flow summary ₹ Cr FY22 FY23 Operating profit/ (loss) before working capital changes 275 (22) Changes in net assets(1) (502) 66 Cash generated from / (used in) operations (227) 44 Direct taxes paid (net of refund) (13) (72) Net cash from / (used in) operating activities (241) (27) Net cash from
Slide 27: Wide ownership across organization
Wide ownership across organization ESOPs(1) Stage Total % shareholding on fully diluted basis ESOPs granted, of which 36,745,890 4.55% Vested 8,479,542 Unvested 28,266,348 ESOPs ungranted, of which 39,036,941 4.84% Time-based ESOPs(2) 24,139,441 Performance-based ESOPs(3) 14,897,500 Total (Granted +
Slide 28: Projected ESOP costs
Projected ESOP costs Estimated P&L charge (non-cash) for ESOPs already granted Cost of time-based Cost of performance-based ₹ Cr options(1) options(2) FY24 165 94 FY25 93 40 FY26 36 12 FY27 4 2 FY28 0 0 Total 298 147 Note: Any new ESOP grants made in the future will be duly notified to the stock exc
Slide 29: Definitions and abbreviations
Definitions and abbreviations Cross Border Cross border express parcel and freight service by the Company The pro forma consolidated P&L and adjusted EBITDA have been compiled by our Company to illustrate the impact of the acquisition of SpotOn Logistics Private Limited on our consolidated Pro forma
Slide 30: Thank You
Thank You For any queries please write to us at ir@delhivery.com 29