Delhivery Limited · NSE:DELHIVERY
Delhivery — Q2 FY23 Earnings Presentation
30 slides from Delhivery's earnings presentation, Nov 14, 2022
Slide 1: Stock exchange cover letter for earnings conference call presentation
Date: November 14, 2022 BSE Limited National Stock Exchange of India Limited Floor 25, P J Towers, Exchange Plaza, C-1, Block G, Dalal Street, Bandra Kurla Complex, Mumbai – 400 001 Bandra (E), Mumbai – 400 051 India India Scrip Code: 543529 Symbol: DELHIVERY Sub: Presentation of Earnings Conference
Slide 2: Earnings Presentation Q2 FY23
Earnings Presentation Q2 FY23
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 largest integrated logistics platform
ss India’s largest integrated logistics platform(1) ₹1,796 Cr 9.3% -7.0% (+547bps QoQ) Q2 FY23 revenue from services YoY growth rate(2) Q2 FY23 adjusted EBITDA margin (Q2 FY23 vs Q2 FY22 pro forma) 161 Mn (19% YoY growth) 286K Tons (20% QoQ growth) 18.5 Mn Express parcels shipped in Q2 FY23 PTL frei
Slide 6: Key operating metrics
Key operating metrics As of end of / for the period FY19 FY20 FY21 FY22(1) Q1 FY23 Q2 FY23 Pin-code reach(2) 13,485 15,875 16,677 18,074 18,435 18,454 Countries served 42 42 42 220+ 220+ 220+ No. of active customers(3) 4,867 7,957 16,741 23,613 29,282 28,100 Infrastructure (in million sq. ft.) 5.96
Slide 7: Highlights
Highlights Express Parcel business remains robust - 80% growth in festive season daily volumes v/s rest 1 of the quarter 2 Continued leadership in Heavy Goods segment with 30% volume growth over previous quarter 3 Regaining market share in PTL; 20% growth in Q2 volumes compared to Q1 Network service
Slide 8: Express Parcel volume growth
Express Parcel volume growth Peak volumes 2.3x of Q2 FY22 daily average and 1.9x of pre-sale Q2 FY23 daily average 1st July – 22nd Sep FY23 daily average Q2 FY22 daily average volumes 3 day average pick-up volumes 7
Slide 9: Q2 FY23 performance
Q2 FY23 performance Revenue from services(1,2) Express Parcel revenue Express Parcel shipments (₹ Cr) YoY: 9% (₹ Cr) YoY: 17% (Millions) YoY: 19% QoQ: 6% 1,125 1,051 161 960 152 135 1,746 1,796 1,644 10% 7% 14% 16% 27% 15% Q2 FY22 Q1 FY23 Q2 FY23 Q2 FY22 Q1 FY23 Q2 FY23 PTL freight revenue (1) PTL f
Slide 10: Other business lines continue to do well
Other business lines continue to do well Supply Chain Services Truckload Services Cross-Border Services • Number of active engagements doubled • New accounts added in Q2FY23 across • Key accounts won across industries such as: vs Sep’21 industries such as: Mining and resources, Industrial engineerin
Slide 11: Q2 FY23 performance
Q2 FY23 performance Revenue from services(1,2) FTL revenue Supply Chain Services revenue (₹ Cr) YoY: 9% (₹ Cr) YoY: 91% (₹ Cr) YoY: 62% 236 180 1,746 1,796 122 1,644 103 112 10% 7% 14% 54 16% 27% 15% Q2 FY22 Q1 FY23 Q2 FY23 Q2 FY22 Q1 FY23 Q2 FY23 Cross-Border Services revenue (₹ Cr) YoY: 33%(3) 60%
Slide 12: Adjusted EBITDA
Adjusted EBITDA ₹ Cr Q2 FY22(1) Q1 FY23 Q2 FY23 FY19 FY20 FY21 FY22(1) Service EBITDA refers to Revenue from customers(2) 1,667 1,746 1,796 1,654 2,781 3,647 7,241 cash EBITDA generated by all the services after accounting for direct variable and fixed costs of Service EBITDA 135 (6) 86 42 89 136 75
Slide 13: Q2 FY23: Drivers of adjusted EBITDA movements vs Q1 FY23
Q2 FY23: Drivers of adjusted EBITDA movements vs Q1 FY23 ₹ Cr Remarks Q1 FY23 adjusted EBITDA (217) • Integration related one-time provisions and vendor payments (+) One-time integration cost in Q1 FY23 46 undertaken in Q1 FY23 Q1 FY23 adjusted EBITDA after excluding one-time cost (A) (171) Incremen
Slide 14: Adjusted EBITDA
Adjusted EBITDA Adjusted EBITDA(1) (₹ Cr) (26) 74 81 (217) (125) (188) (253) (253) 72 3.7% 3.9% 1.0% (1.6%) (7.0%) (6.9%) (9.1%) (11.3%) (12.5%) Q2 FY22 Q3 FY22 Q4 FY22 Q1 FY23 Q2 FY23 FY19 FY20 FY21 FY22 Quarterly Yearly 13 (1) FY22 figures are on proforma basis
Slide 15: Adjusted EBITDA bridge
Adjusted EBITDA bridge Adjusted EBITDA(1) ₹ Cr Q2 FY22 Q1 FY23 Q2 FY23 FY21 FY22 Remarks Total revenue from customers 1,667 1,746 1,796 3,647 7,241 Less: Total expenses 2,348 2,206 2,158 4,213 8,509 Add: Finance cost on borrowings 17 7 6 20 51 Add: Lease Adjustments due to AS 116 15 9 9 47 45 Leased
Slide 16: Adjusted cash PAT
Adjusted cash PAT Adjusted cash PAT(1) (₹ Cr) (2) 101 141 (187) (32) (157) (57) (82) 212 6.6% 5.0% 2.9% (0.1%) (1.7%) (1.9%) (2.1%) (9.2%) (10.4%) Q2 FY22 Q3 FY22 Q4 FY22 Q1 FY23 Q2 FY23 FY19 FY20 FY21 FY22 Quarterly Yearly Note: Not adjusted for any non-cash deferred taxes 15 (1) FY22 figures are o
Slide 17: Adjusted cash PAT bridge
Adjusted cash PAT bridge Adjusted Cash PAT(1) ₹ Cr Q2 FY22 Q1 FY23 Q2 FY23 FY21 FY22 Remarks Profit after tax (643) (399) (254) (416) (1,081) Add: Lease adjustments due to AS 116 15 9 9 47 45 Leased properties accounted as Right of Use (ROU) assets under Ind AS 116. Rent paid on such leased Add: Dep
Slide 18: Appendix
Appendix 17
Slide 19: Quarterly financial performance (Proforma P&L)
Quarterly financial performance Proforma P&L ₹ Cr Q-o-Q Y-o-Y Y-o-Y Income Q2 FY22 Q1 FY23 Q2 FY23 FY21 FY22 Growth % Growth % Growth % Revenue for services (A) 1,644 1,746 1,796 3% 9% 4,439 7,054 59% Revenue from traded goods (B) 24 - - - - 11 1,88 - Revenue from customers (A+B) 1,667 1,746 1,796 3
Slide 20: Quarterly financial performance (Reported P&L)
Quarterly financial performance Reported P&L ₹ Cr Q-o-Q Y-o-Y Y-o-Y Income Q2 FY22 Q1 FY23 Q2 FY23 FY21 FY22 Growth % Growth % Growth % Revenue for services (A) 1,474 1,746 1,796 3% 22% 3,635 6,695 84% Revenue from traded goods (B) 24 - - - (100%) 11 188 - Revenue from customers (A+B) 1,498 1,746 1,
Slide 21: Operating leverage
Operating leverage ₹ Cr Q2 FY22 Q1 FY23 Q2 FY23 FY21 FY22 Freight, Handling and Servicing Cost(1,2) 1,157 1,453 1,436 2,778 4,980 % of Revenue from services(1) 78.5% 83.2% 79.9% 76.2% 72.4% Line haul expenses 558 648 645 1,328 2,398 % of revenue 37.8% 37.1% 35.9% 36.4% 34.8% Contractual manpower exp
Slide 22: Balance sheet
Balance sheet ₹ Cr ₹ Cr Equity and Liabilities Mar 2022 Sep 2022 Assets Mar 2022 Sep 2022 Total equity 5,957 9,386 Non – current assets Non – current liabilities Non – current cash equivalents(1) 692 447 Borrowings 118 118 Property, plant and equipment (Incl CWIP) 681 882 Lease liabilities 573 650 G
Slide 23: Working capital position improving YoY
Working capital position improving YoY Net Working Capital (Days) 43 73 47 37 35 106 87 78 78 74 40 43 35 37 33 FY19 FY20 FY21 FY22 H1 FY23 Receivable days Payable days Net Working Capital Days (Receivable Days – Payable Days) Receivable days = (Trade receivable + Unbilled receivables) * 365 / Annua
Slide 24: Strong liquidity position
Strong liquidity position Debt to Equity ₹ Cr FY19 FY20 FY21 FY22 H1 FY23 Term loan 65 166 199 233 246 Working capital loan 29 91 84 120 5 Debt (excludes CCPS) (A) 94 257 283 353 251 Cash and cash equivalents1 (B) 2,994 2,315 1,998 2,512 5,752 Net debt (A-B) (2,900) (2,058) (1,715) (2,159) (5,502) N
Slide 25: Cash flow summary
Cash flow summary ₹ Cr H1 FY22 H1 FY23 Operating profit/ (loss) before working capital changes (102) (181) Changes in net assets(1) (221) 100 Cash generated from / (used in) operations (323) (81) Direct taxes paid (net of refund) 27 (38) Net cash from / (used in) operating activities (296) (119) Net
Slide 26: Wide ownership across organization
Wide ownership across organization ESOPs1 Stage Total % shareholding on fully diluted basis ESOPs granted, of which 34,651,333 4.31% Vested 4,415,168 Unvested 30,236,165 ESOPs ungranted, of which 43,458,440 5.41% Performance-based ESOPs2 17,137,500 Time-based ESOPs3 26,320,940 Total (Granted + Ungra
Slide 27: Projected ESOP costs
Projected ESOP costs Estimated P&L charge (non-cash) for ESOPs already Distribution of P&L charge over vesting period for granted future ESOP grants(3) Cost of Cost of time-based ₹ Cr performance-based options(1) Year Time-based options(2) FY23 253 29 Y1 42.5% FY24 134 29 Y2 32.5% FY25 63 26 Y3 17.5
Slide 28: Shareholding pattern on shares outstanding and fully diluted basis
Shareholding pattern on shares outstanding and fully diluted basis As of Sep 30, 2022 % shareholding on shares % shareholding on diluted Shareholder Category # of shares outstanding basis basis Total shares outstanding (A) 725,746,355 100% NA ESOPs with time-based vesting (B) 44,994,988 NA 5.8% Tota
Slide 29: Definitions and abbreviations
Definitions and abbreviations AGV Automated guided vehicle AMR Autonomous mobile robot ASC Automated sort capacity BA Business associate CCPS Compulsorily convertible preference shares Cross Border Cross border express parcel and freight service by the Company D2C Direct to consumer NDR Non delivery
Slide 30: Thank You
Thank You For any queries please write to us at ir@delhivery.com