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Shares of Delhivery plunged 13 per cent to Rs 486.95 on the BSE in Thursday’s intra-day trade after the logistics solution provider said it anticipates a moderate growth in shipment volumes through the rest of financial year 2023. (FY23).
With today’s decline, the stock price of the company has corrected 31 per cent from its record high level of Rs 708.45 touched on July 21, 2022. Delhivery made its market debut on May 24.
Currently, it is trading below its issue price of Rs 487 per share. It had hit a record low of Rs 456.05 on June 20.
Delhivery is India's largest and the fastest growing fully-integrated logistics services player by revenue as of FY22. It provides supply-chain solutions to a diverse base of 23,613 active customers such as e-commerce marketplaces, direct-to-consumer etailers and enterprises and various SMEs.
Its Express Parcel volumes remained stable and picked up towards the end of the quarter, driven by festive season sales, especially in the heavy goods category.
Overall service line volumes for the business grew in the high teens in Q2FY23 over a large base of the same quarter last year (Q2FY22).
"While the festive season sale surge in shipment volumes will spill over to Q3FY22 as well, we anticipate moderate growth in shipment volumes through the rest of the financial year,” the company said.
It added that it remains watchful of the market sentiment going forward. "We have made sufficient capacity investments in FY22 and early FY23 to sustain our current rate of growth and expect new mega-gateway and sorter decisions only by early FY24,” the company said.
As inflationary pressures and service disruptions due to monsoon ease across the country, the company expects improvement in volumes, revenue and service margins going ahead.
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First Published: Thu, October 20 2022. 12:15 IST