Delhivery Limited · NSE:DELHIVERY
Delhivery — Q1 FY23 Earnings Presentation
28 slides from Delhivery's earnings presentation, Aug 9, 2022
Slide 1: Exchange filing cover letter
Date: August 09, 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 C
Slide 2: Earnings Presentation Q1 FY23
Earnings Presentation Q1 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) ₹1,746 Cr 30% -12.5% Q1 FY23 revenue from services YoY growth rate(2) Q1 FY23 adjusted EBITDA margin (Q1 FY23 vs Q1 FY22 pro forma) 152 Mn 239K Tons 18.9 Mn Express parcels shipped in Q1 FY23 PTL freight handled in Q1 FY23 Sq. Ft. logistics infrast
Slide 6: Key operating metrics
Key operating metrics As of end of FY19 FY20 FY21 FY22(1) Q1 FY23 Pin-code reach(2) 13,485 15,875 16,677 18,074 18,435 Countries served 42 42 42 220+ 220+ No. of active customers(3) 4,867 7,957 16,741 23,613 29,282 Infrastructure (in million sq. ft.) 5.96 9.85 12.23 18.15 18.89 Gateways 73 83 88 123
Slide 7: Q1 FY23: Key milestones
Q1 FY23: Key milestones 1 Completed operational (network and infrastructure) integration of SpotOn 2 Expanded total infrastructure to 18.89M sq.ft. (expansion by ~0.74M sqft from Q4 FY22) 3 Automated mega-gateway at Tauru (Haryana) made fully operational 4 Launched guaranteed same-day delivery (SDD)
Slide 8: SpotOn integration
SpotOn integration Integration of Delhivery & SpotOn businesses meant assimilation of 2,000+ SpotOn team members, 5,500+ customers and an infrastructure of 2.5 Mn+ sq ft across 350 operating facilities into the Delhivery network. Phase I: Integration of clients and teams - Completed successfully in
Slide 9: Integration impact
Integration impact Service stability PTL tonnage/GM impact One-time transition costs • Service stabilization took 4 weeks • Proactive reduction in volumes along • Certain redundant costs incurred post- longer than expected at automated with reduction from select clients from integration in Q1 FY23 d
Slide 10: Q1 FY23 performance
Q1 FY23 performance Revenue from services(1,2) Express Parcel revenue Express Parcel shipments (₹ Cr) YoY: 30% (₹ Cr) YoY: 34% (Millions) YoY: 50% 1,232 1,051 176 2,072 152 785 10% 1,746 102 14% 1,344 23% 8% 15% Q1 FY22 Q4 FY22 Q1 FY23 Q1 FY22 Q4 FY22 Q1 FY23 23% PTL freight revenue (1) PTL freight
Slide 11: Q1 FY23 performance
Q1 FY23 performance Revenue from services(1,2) FTL revenue Supply Chain Services revenue (₹ Cr) YoY: 30% (₹ Cr) YoY: 121% (₹ Cr) YoY: 123% 236 2,072 200 10% 1,746 122 102 106 14% 55 1,344 23% 8% 15% Q1 FY22 Q4 FY22 Q1 FY23 Q1 FY22 Q4 FY22 Q1 FY23 23% Cross Border Services revenue (₹ Cr) 59% YoY: 53%
Slide 12: Adjusted EBITDA
Adjusted EBITDA ₹ Cr Q1 FY22(1) Q4 FY22 Q1 FY23 FY19 FY20 FY21 FY22(1) Service EBITDA refers to Revenue from customers(2) 1,508 2,072 1,746 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 83 282 (6) 42 89 136 75
Slide 13: Q1 FY23: Profitability affected by one-time events
Q1 FY23: Profitability affected by one-time events Rs. Cr Remarks Q4 FY22 adjusted EBITDA (A) 81 • ~2,500 manpower B1. (-) Capacity addition during Q1 (Staffing, Fleet, Infrastructure) -21 • 30 trucks and 85 trailers • 0.74mn sqft. of transportation infrastructure • Fleet, staffing, infrastructure r
Slide 14: Adjusted EBITDA
Adjusted EBITDA Adjusted EBITDA(1) (₹ Cr) (58) (26) 74 81 (217) (188) (253) (253) 72 3.7% 3.9% 1.0% (1.6%) (3.8%) (6.9%) (9.1%) (11.3%) (12.5%) Q1 FY22 Q2 FY22 Q3 FY22 Q4 FY22 Q1 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 Q1 FY22 Q4FY22 Q1 FY23 FY21 FY22 Remarks Total revenue from customers 1,508 2,072 1,746 3,647 7,241 Less: Total expenses 1,751 2,254 2,206 4,213 8,509 Add: Finance cost on borrowings 21 6 7 20 51 Lease Adjustments due to AS 116 11 8 9 47 45 Leased prope
Slide 16: Adjusted cash PAT
Adjusted cash PAT Adjusted cash PAT(1) (₹ Cr) (28) (2) 101 141 (187) (157) (57) (82) 212 6.6% 5.0% 2.9% (0.1%) (1.8%) (1.9%) (2.1%) (9.2%) (10.4%) Q1 FY22 Q2 FY22 Q3 FY22 Q4 FY22 Q1 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 Q1 FY22 Q4 FY22 Q1 FY23 FY21 FY22 Remarks Profit after tax (192) (120) (399) (416) (1,081) Lease adjustments due to AS 116 11 8 9 47 45 Leased properties accounted as Right of Use (ROU) assets under Ind AS 116. Rent paid on such leased Add: Deprecia
Slide 18: 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 19: Appendix
Appendix 18
Slide 20: Quarterly financial performance (Proforma P&L)
Quarterly financial performance Proforma P&L ₹ Cr Q-o-Q Y-o-Y Y-o-Y Income Q1 FY22 Q4 FY22 Q1 FY23 FY21 FY22 Growth % Growth % Growth % Revenue for services (A) 1,344 2,072 1,746 (16%) 30% 4,439 7,054 59% Revenue from traded goods (B) 164 0 - - - 11 1,88 - Revenue from customers (A+B) 1,508 2,072 1,
Slide 21: Quarterly financial performance (Reported P&L)
Quarterly financial performance Reported P&L ₹ Cr Q-o-Q Y-o-Y Y-o-Y Income Q1 FY22 Q4 FY22 Q1 FY23 FY21 FY22 Growth % Growth % Growth % Revenue for services (A) 1,154 2,072 1,746 (16%) 51% 3,635 6,695 84% Revenue from traded goods (B) 164 0 - - - 11 188 - Revenue from customers (A+B) 1,318 2,072 1,7
Slide 22: Operating leverage
Operating leverage ₹ Cr Q1 FY22 Q4 FY22 Q1 FY23 FY21 FY22 Freight, Handling and Servicing Cost(1,2) 868 1,502 1,453 2,778 4,980 % of Revenue from services(1) 75.2% 72.5% 83.2% 76.2% 72.4% Line haul expenses 428 724 648 1,328 2,398 % of revenue 37.1% 35.0% 37.1% 36.4% 34.8% Contractual manpower expen
Slide 23: Impact of change in depreciation of certain assets
Impact of change in depreciation of certain assets Original depreciable life of asset New depreciable life of asset Quarterly impact on depreciation Assets (as per old schedule, Yrs) (as per new schedule, Yrs) (₹ Cr) Sorter & Conveyor 5.0 10.0 (7.0) Leasehold Improvements(1) 5.0 Equal to lease term
Slide 24: Wide ownership across organization
Wide ownership across organization ESOPs1 Stage Total % shareholding on fully diluted basis ESOPs granted, of which 35,293,693 4.39% Vested 3,281,618 Unvested 32,012,075 ESOPs ungranted, of which 44,059,280 5.48% Performance-based ESOPs2 17,100,000 Time-based ESOPs3 26,959,280 Total (Granted + Ungra
Slide 25: 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 232 29 Y1 42.5% FY24 98 29 Y2 32.5% FY25 47 26 Y3 17.5%
Slide 26: Shareholding pattern on shares outstanding and fully diluted basis
Shareholding pattern on shares outstanding and fully diluted basis As of June 30, 2022 % shareholding on shares % shareholding on diluted Shareholder Category # of shares outstanding basis basis Total shares outstanding (A) 724,503,155 100% NA ESOPs with time-based vesting (B) 46,472,573 NA 6.0% Tot
Slide 27: 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 LNG Liquefied na
Slide 28: Thank You
Thank You For any queries please write to us at ir@delhivery.com