Delhivery Limited · NSE:DELHIVERY
Delhivery — Investor Presentation (March 2024)
30 slides from Delhivery's investor presentation, Mar 6, 2024
Slide 1: Intimation under Regulation 30 - Schedule of Investors Meeting
Date: March 06, 2024 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 of
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 1,470 10% ~7-10% 1,050 Source: RedSeer report 1. As of CY2
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) ₹2,194 Cr 4.2% 0.5% Q3 FY24 Revenue from services Q3 FY24 Adj. EBITDA margin Q3 FY24 PAT margin QoQ: 13.0%; YoY: 20.4% Highest ever quarterly Adj. EBITDA margin First ever PAT profitable quarter Q2 FY24: (0.6%); Q3 FY23: (3.7%) 201 Mn 354K Tons 18,675
Slide 8: Our business is based on powerful, self-reinforcing growth flywheels
Our business is based on powerful, self- reinforcing growth flywheels Provide Best-in- Build Consumer, class Customer Product, Location, Experience to Drive Intelligence from Stickiness Order Data Technology Logistics Establish Highest + Quality Infra & Largest Reach Build Products & Data Insights T
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: 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 11: 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 12: Q3 FY24 Update
Q3 FY24 Update 11
Slide 13: Q3 FY24 highlights
Q3 FY24 highlights 1 Highest ever quarterly revenue and Adj. EBITDA margin, PAT profitable in Q3 a Operating leverage driving Q3 performance; ~50% incremental gross margin in transport business b Adj. EBITDA of ₹92 Cr, margin expanded ~800bps on YoY and ~500bps on QoQ basis c Q3 Adj. EBITDA profitab
Slide 14: Q3 FY24 performance
Q3 FY24 performance Revenue from services(1) Express Parcel revenue Express Parcel shipments (₹ Cr) YoY: 20% (₹ Cr) YoY: 21% (Mn) YoY: 18% QoQ: 13% QoQ: 20% QoQ: 11% 2,194 1,448 201 170 181 1,200 1,210 1,942 8% 1,822 7% 8% 10% 8% 17% 6% 19% 15% Q3 FY23 Q2 FY24 Q3 FY24 Q3 FY23 Q2 FY24 Q3 FY24 PTL fre
Slide 15: Q3 FY24 performance
Q3 FY24 performance Revenue from services(1) TL Service revenue Supply Chain Services revenue (₹ Cr) YoY: 20% (₹ Cr) YoY: 51% (₹ Cr) YoY: (3%) QoQ: 13% QoQ: 5% 2,194 QoQ: 2% 1,942 8% 178 173 164 1,822 7% 150 153 8% 102 10% 8% 17% 6% 19% 15% Q3 FY23 Q2 FY24 Q3 FY24 Q3 FY23 Q2 FY24 Q3 FY24 Cross Borde
Slide 16: Adjusted EBITDA
Adjusted EBITDA ₹ Cr Q1 FY23 Q2 FY23 Q3 FY23 Q4 FY23 Q1 FY24 Q2 FY24 Q3 FY24 9M FY24 FY23 Service EBITDA refers Revenue from customers(1) 1,746 1,796 1,824 1,860 1,930 1,942 2,194 6,066 7,225 to cash EBITDA generated after accounting for direct variable and fixed Service EBITDA (6) 86 139 205 196 20
Slide 17: Adjusted EBITDA
Adjusted EBITDA (₹ Cr) (58) (26) 74 81 (217) (125) (67) 6 (25) (13) 92 3.9% 4.2% 3.7% 0.3% (0.6%) (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 Q2 FY24 Q3 FY24 FY22 FY23 FY24 16 Note: FY22 figures are on proforma basis
Slide 18: Cost drivers – Q3 FY24 vs Q2 FY24
Cost drivers – Q3 FY24 vs Q2 FY24 ₹ Cr Q3 FY22 Q3 FY23 Q2 FY24 Q3 FY24 FY23 Freight, Handling and Servicing Cost(1,2) 1,454 1,409 1,442 1,572 5,669 % of Revenue from services(2) 72.9% 77.4% 74.3% 71.6% 78.5% Line haul expenses 687 608 632 696 2,517 % of revenue 34.5% 33.4% 32.5% 31.7% 34.8% Vehicle
Slide 19: Appendix
Appendix 18
Slide 20: Quarterly financial performance
Quarterly financial performance ₹ Cr Q3 FY23 Q2 FY24 Q3 FY24 QoQ% YoY% 9M FY23 9M FY24 FY23 Income Revenue for services (A) 1,822 1,942 2,194 13% 20% 5,364 6,066 7,224 Revenue from traded goods (B) 2 - - - - 2 - 2 Revenue from customers (A+B) 1,824 1,942 2,194 13% 20% 5,366 6,066 7,225 Other income
Slide 21: Adjusted EBITDA bridge
Adjusted EBITDA bridge ₹ Cr Q3 FY23 Q2 FY24 Q3 FY24 9M FY24 FY23 Remarks Total revenue from customers 1,824 1,942 2,194 6,066 7,225 Less: Freight handling and servicing cost 1,409 1,442 1,572 4,452 5,669 Less: Purchase & change in inventory of 2 - - - 2 traded goods Less: Employee benefit expense 34
Slide 22: Q3 FY24: Drivers of adjusted EBITDA movements vs Q2 FY24
Q3 FY24: Drivers of adjusted EBITDA movements vs Q2 FY24 ₹ Cr Remarks Q2 FY24 Adjusted EBITDA (A) (13) Incremental revenue in Transport (Express and PTL) 244 Incremental gross profit in Transport (Express and PTL) (B) 119 ~50% incremental gross profit in transport business Full quarter impact of cap
Slide 23: Balance sheet
Balance sheet ₹ Cr ₹ Cr Equity and Liabilities Mar ‘23 Sep ’23 Assets Mar ‘23 Sep ‘23 Total equity 9,177 9,111 Non – current assets Non – current cash equivalents(1) 670 1,222 Non – current liabilities Property, plant and equipment (Incl CWIP) 817 972 Borrowings 114 80 Goodwill and other intangible
Slide 24: Working capital position improving YoY
Working capital position improving YoY Net Working Capital (Days) 43 73 47 37 38 28 106 87 78 77 74 65 40 37 39 37 35 33 Mar '19 Mar '20 Mar '21 Mar '22 Mar '23 Sep '23 Receivable days Payable days Net Working Capital Days (Receivable days – Payable days) Receivable days = (Trade receivable + Unbill
Slide 25: Strong liquidity position
Strong liquidity position Debt to Equity ₹ Cr Mar ‘22 Sep ‘22 Mar ’23 Sep ’23 Term loan 233 246 199 170 Working capital loan 120 5 - - Debt (excludes CCPS) (A) 353 251 199 170 Cash and cash equivalents(1) (B) 2,512 5,752 5,508 5,534 Net debt (A-B) (2,159) (5,502) (5,309) (5,364) Networth (C) 5,957 9
Slide 26: Investing in capacity and capability building
Investing in capacity and capability building 9.0% 7.5% 7.2% 6.8% 7.8% 7.0% 0.6% 0.5% 0.4% 1.6% 1.1% 1.1% 1.7% 1.8% 1.9% 2.8% 2.0% 3.5% 2.0% 1.5% 2.1% 1.2% 1.3% 0.8% 1.7% 2.7% 1.0% 1.2% 2.3% 2.4% 1.4% 1.8% 1.2% 1.2% 0.2% FY19 FY20 FY211 FY22 1,2 FY23 H1 FY24 Vehicles Automation Plant, Machinery & Le
Slide 27: Cash flow summary
Cash flow summary ₹ Cr H1 FY23 H1 FY24 Net cash from / (used in) operating activities (119) 305 Cash generated from / (used in) operations (81) 297 Cash operating profit/ (loss) before working capital changes(1) (122) 186 Changes in net assets(1,2) 41 111 Direct taxes paid (net of refund) (38) 8 Net
Slide 28: Employee Stock Options
Employee Stock Options(1) Estimated P&L charge (non-cash) for ESOPs already granted Cost of performance-based ₹ Cr Cost of time-based options(2) options(3) FY24 143 94 FY25 93 40 FY26 38 12 FY27 6 2 FY28 0 - Total 279 147 Number of employees holding ESOPs (vested + unvested) : 1,516 ESOPs ungranted
Slide 29: Definitions and abbreviations
Definitions and abbreviations Cross Border Cross border ocean & air freight and express parcel services by the Company The pro forma consolidated P&L and adjusted EBITDA compiled by our Company to illustrate the impact of the acquisition of SpotOn Logistics Private Limited on our consolidated financ
Slide 30: For any queries, please write to us at ir@delhivery.com
29 For any queries, please write to us at ir@delhivery.com