Delhivery Limited · NSE:DELHIVERY
Delhivery — Q4 FY22 Earnings Presentation
37 slides from Delhivery's earnings presentation, May 31, 2022
Slide 1: Intimation of Earnings Conference Call Presentation
Date: May 31, 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 Call
Slide 2: Earnings Presentation Q4FY22 and FY22
Earnings Presentation Q4FY22 and FY22
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
India’s largest integrated logistics platform(1) ₹7,241 Cr 63.6% 1.0% FY22 Proforma revenue(2) FY19 – 22 Revenue CAGR(3) FY22 Proforma adjusted EBITDA margin(2) 1.4 Bn/24-25% 58.6% 2 Mn+ Tons Express orders shipped since Revenue from customers PTL freight handled(6) inception/e-Commerce market share
Slide 6: Delhivery: Team and Directors
Delhivery: Team and Directors Sahil Barua Sandeep Barasia Managing Director Executive Director CEO CBO Deepak Kapoor Chairman Kapil Bharati Amit Agarwal Executive Director CFO CTO Kalpana Morparia Romesh Sobti Saugata Gupta Srivatsan Rajan Independent Director Independent Director Independent Direct
Slide 7: Our evolution
Our evolution • Launched Delhivery Direct and Franchise • Launched Supply Chain • Acquisition of Services division Primaseller • Launched Truckload • Introduced Volvo Services division tractor-trailer fleet 7,241 • Acquired Aramex India assets, global partnership • Setup Seattle center for platform
Slide 8: Delhivery: Investment case
Delhivery: Investment case 1 $200B+ addressable market - large and highly fragmented 2 Largest integrated logistics platform with a full range of supply chain services 3 Industry leading revenue growth and scale 4 Operating leverage driving adjusted EBITDA profitability 5 Unified network infrastruct
Slide 9: Industry outlook
Industry outlook Market conditions are challenging Improving regulatory environment Large opportunities remain intact • Geopolitical conditions continue to • Infrastructure status for logistics, • Continued increase in online purchase cause significant disruption continued improvement of road, air a
Slide 10: Delhivery: Outperforming on business growth
Delhivery: Outperforming on business growth 70% FY15-22 CAGR (%) 50% 30% India nominal GDP growth: 9.5%(1) 10% 0 2,000 4,000 6,000 8,000 -10% FY22 Revenue (₹ Cr) (1) India GDP data source: FY15-FY21 from RBI Time-Series Publication, FY22 estimate from NSO MOSPI Second Advance Estimate (2) Each bubbl
Slide 11: Revenue is diversifying rapidly
Revenue is diversifying rapidly CAGR (FY19-22) Revenue(1) 7,241 (₹ Cr) Cross-border 233.3% 8% SCS 61.0% 4% TL NM(2) 24% PTL 130.0% 3,647 11% 2,781 6% 8% 11% 13% 8% 58% Express 45.1% 1,654 Parcel 8% 1,023 70% 743 5% 69% 495 83% 223 97% 89% 1 17 61 98% 97% FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20
Slide 12: Consistent volume growth
Consistent volume growth Express Parcel shipments (In Millions) 582 Annual Quarterly 170 176 135 102 289 94 82 225 73 73 55 53 148 44 43 40 93 31 37 37 45 68 0 2 6 20 FY 12 13 14 15 16 17 18 19 20 21 22 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 FY19 FY20 FY21 FY22 PTL Freight tonnage(1) (In ‘0
Slide 13: Key operating metrics
Key operating metrics As of end of FY19 FY20 FY21 FY22(1) Pin-code reach(2) 13,485 15,875 16,677 18,074 Countries served 42 42 42 220+ No. of active customers(3) 4,867 7,957 16,741 23,613 Infrastructure (in million sq. ft.) 5.96 9.85 12.23 18.15 Gateways 73 83 88 123 Automated sort centers 17 21 19
Slide 14: Pan-India network coverage
Pan-India network coverage 2,023 Surface connections connecting 8,659 OD pairs daily 274 Air connections daily 13 Note: Maps for representation purpose only. Coloured portion of the maps represent Delhivery’s pin-code reach
Slide 15: Breakeven achieved at Adjusted EBITDA level
Breakeven achieved at Adjusted EBITDA level ₹ Cr FY19 FY20 FY21 FY22(1) Revenue 1,654 2,781 3,647 7,241 Service EBITDA refers to cash EBITDA generated by Yield per express parcel (₹) 92 86 88 72 all the services after accounting for direct variable Fuel price per litre(2) (₹) 66 62 82 93 and fixed c
Slide 16: Breakeven achieved at Adjusted EBITDA level
Breakeven achieved at Adjusted EBITDA level Adjusted EBITDA(1) (₹ Cr) (40) (58) (26) 74 81 (188) (253) (253) 72 3.7% 3.9% 1.0% (1.6%) (4.0%) (3.8%) (6.9%) (9.1%) (11.3%) Q4 FY21 Q1 FY22 Q2 FY22 Q3 FY22 Q4 FY22 FY19 FY20 FY21 FY22 Quarterly Yearly (1) FY22 figures are on proforma basis 15
Slide 17: Operating leverage improving consistently
Operating leverage improving consistently ₹ Cr Q4FY21 Q3FY22 Q4FY22 FY21 FY22 Freight, Handling and Servicing Cost(1,2) 752 1,454 1,502 2,778 4,980 % of Revenue from Customers(1) 75.0% 72.9% 72.5% 76.2% 72.4% Line haul expenses 383 687 724 1,328 2,398 % of revenue 38.2% 34.5% 35.0% 36.4% 34.8% Contr
Slide 18: Adjusted EBITDA bridge
Adjusted EBITDA bridge Adjusted EBITDA(1) ₹ Cr Q4FY21 Q3FY22 Q4FY22 FY21 FY22 Remarks Total revenue 1,003 1,995 2,072 3,647 7,241 Less: Total expenses 1,150 2,155 2,254 4,213 8,509 Add: Finance cost on borrowings 6 7 6 20 51 Lease Adjustments due to AS 116 11 11 8 47 45 Leased properties accounted a
Slide 19: Adjusted Cash PAT is positive
Adjusted Cash PAT is positive Adjusted cash PAT(1) (₹ Cr) (17) (28) (2) 101 141 (157) (57) (82) 212 6.6% 5.0% 2.9% (0.1%) (1.7%) (1.8%) (1.9%) (2.1%) (9.2%) Q4 FY21 Q1 FY22 Q2 FY22 Q3 FY22 Q4 FY22 FY19 FY20 FY21 FY22 Quarterly Yearly Note: Not adjusted for any non-cash deferred taxes 18 (1) FY22 fig
Slide 20: Adjusted Cash PAT bridge
Adjusted Cash PAT bridge Adjusted Cash PAT(1) ₹ Cr Q4FY21 Q3FY22 Q4FY22 FY21 FY22 Remarks Profit after tax (118) (127) (120) (416) (1,081) Lease adjustments due to AS 116 11 11 8 47 45 Leased properties accounted as Right of Use (ROU) assets under Ind AS 116. Rent paid on such leased Add: Depreciati
Slide 21: Investing in capacity and capability building
Investing in capacity and capability building Covid impacted period year Use of funds - mix Use of funds – value(1) (%) (₹ Cr) 41 790 1,609 402 2,702 6% 2% 14% 13% 33% 49% 20% 63% 13% 62% 29% 60% 18% 55% 20% 21% 19% 3% FY12-FY14 FY15-FY17 FY18-FY20 FY21 FY22 Operating Cash Burn Capex Working Capital
Slide 22: Investing in capacity and capability building
Investing in capacity and capability building Capex Spends (₹ Cr) Capex as % of Total 1 9.0% 7.5% 7.2% 6.8% Revenues from Operations 466 Spill over of ~₹100 Cr of capex into FY22 1.6% Covid impacted year 261 1.1% 0.8% 1.0% 208 1.9% 1.9% 149 1.9% 1.2% 1.2% 0.1% 0.2% 0.3% 1.3% 3.0% 3.2% 3.0% 2.7% 3.8%
Slide 23: Proprietary technology platform
Proprietary technology platform Application Ecosystem of 80+ business applications that can be bundled Layer Operational In- Fleet Quality & Client Panels Channel Partner Control Tower Billing, Audit, Data into solutions facility and Management Tracking Integration Management P&L Tracking Intelligen
Slide 24: Data intelligence capabilities
Data intelligence capabilities Vehicle Trace Data Over 250 Mn GPS trace points daily across >80 K Location Stack unique devices(1,2) Address standardization(6), geocoding, geofencing, Location & Product Data locality polygons/ hierarchy, PoIs, travel / service Address, product and customer data capt
Slide 25: FY23 Growth initiatives
FY23 Growth initiatives 1 Integration of DLV and SO networks, realize network synergies, launch economy PTL service 2 Up to 4 Mn sqft infra expansion, fleet expansion by 150 TTs, 35% expansion of ASCs 3 Introduction of new automation - AGVs/AMRs, ASRS systems, system-directed MM operations 4 Expand
Slide 26: ESG initiatives
ESG initiatives • 1.5MW of Solar power plants already installed at our Gurgaon and Kolkata mega gateways Environment • Active pilots on 2 & 3-wheeler EVs across first mile, last mile and carting and CNG in mid mile. Engaged with various OEMs to explore EV and LNG vehicle options for carting and line
Slide 27: Appendix
Appendix 26
Slide 28: Working capital position improving YoY
Working capital position improving YoY Net Working Capital (Days) 43 73 47 37 106 87 78 74 40 37 35 33 FY19 FY20 FY21 FY22 Receivable days Payable days Net Working Capital Days (Receivable Days – Payable Days) Receivable days = (Trade receivable + Unbilled receivables) * 365 / Revenue from operation
Slide 29: Strong liquidity position
Strong liquidity position Debt to Equity ₹ Cr FY19 FY20 FY21 FY22 Term loan 65 166 199 233 Working capital loan 29 91 84 120 Debt (excludes CCPS) (A) 94 257 283 353 Cash and cash equivalents1 (B) 2,994 2,315 1,998 2,512 Net debt (A-B) (2,900) (2,058) (1,715) (2,159) Networth (C) 3,388 3,170 2,837 5,
Slide 30: Wide ownership across organization
Wide ownership across organization ESOPs1 Stage Total % shareholding on fully diluted basis ESOPs granted, of which 35,505,576 4.42% Vested 1,812,960 Unvested 33,692,616 ESOPs ungranted, of which 43,847,397 5.45% Performance-based ESOPs2 17,100,000 Time-based ESOPs3 26,747,397 Total (Granted + Ungra
Slide 31: Projected ESOP costs
Projected ESOP costs Estimated P&L charge (non-cash) for ESOPs already Distribution of P&L charge over vesting period for granted1 future ESOP grants2 ₹ Cr Total Year Time-based FY23 232 Y1 42.5% FY24 98 Y2 32.5% FY25 47 Y3 17.5% FY26 13 FY27 1 Y4 7.5% Total 390 Total 100% (1) Related to costs attri
Slide 32: Quarterly & full year financial performance
Quarterly & full year financial performance Proforma P&L ₹ Cr Q-o-Q Y-o-Y Income Q3 FY22 Q4 FY22 FY21 FY22 Growth % Growth % Revenue from customers 1,995 2,072 4% 4,450 7,241 63% Other income 24 55 129% 194 158 (19%) Total income 2,019 2,127 5% 4,644 7,399 59% Expense Total freight, handling and ser
Slide 33: Balance sheet
Balance sheet ₹ Cr ₹ Cr Equity and Liabilities Mar 2021 Mar 2022 Assets Mar 2021 Mar 2022 Total equity 2,837 5,957 Non – current assets Non – current liabilities Non – current cash equivalents(1) 442 692 Borrowings 132 118 Property, plant and equipment (Incl CWIP) 314 681 Lease liabilities 654 573 G
Slide 34: Cash flow summary
Cash flow summary ₹ Cr FY21 FY22 Operating profit/ (loss) before working capital changes 67 272 Changes in net assets(1) (40) (495) Cash generated from / (used in) operations 28 (224) Direct taxes paid (net of refund) (18) (13) Net cash from / (used in) operating activities 10 (237) Net cash from /
Slide 35: Quarterly & full year financial performance
Quarterly & full year financial performance Reported P&L ₹ Cr Q-o-Q Y-o-Y Y-o-Y Income Q4 FY21 Q3 FY22 Q4 FY22 FY21 FY22 Growth % Growth % Growth % Revenue from customers 1,003 1,995 2,072 4% 107% 3,647 6,882 89% Other income 29 24 55 129% 90% 192 156 (19%) Total income 1,032 2,019 2,127 5% 106% 3,8
Slide 36: 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 GST Goods and se
Slide 37: Thank You
Thank You For any queries please write to us at ir@delhivery.com 36