Logistics company Delhivery on Friday said it narrowed its net loss to `254 crore for the quarter ended September against a loss of `635 crore in the corresponding quarter last year on the back of a surge in sales with the start of festive season sales towards the end of the quarter.

The company’s revenue from services increased 22% year-on-year to `1,796 crore, up 9% y-o-y from ` 1,644 crore on a pro forma basis in the second quarter.

However, the company’s adjusted Ebitda loss more than doubled to `125 crore from `58 crore in the previous quarter. Sequentially, there was an improvement.

In a business update shared on October 20 for the second quarter, the Gurugram-based company had said the company expects moderate growth of shipment volumes for the rest of FY23, which led investors into a tizzy, and its share price dropped 14% to `479 on the BSE. 

The company said market sentiment in the second quarter continued to remain broadly unchanged from the June quarter in its update. 

Delhivery had posted a wider net loss of `399 crore for the three months ended June versus `130 crore loss in the year ago period.

Revenue from express parcel services in the September quarter increased 17% y-o-y to `1,125 crore. Express volumes were higher 19% y-o-y to 161 million shipments versus 135 million shipments in Q2FY22 on the back of a steady quarter with an added surge in volumes towards the end of the quarter owing to the start of festive season sales. Shipment volumes grew by 80% during the festive season period over average volumes in prior weeks, company said in a statement.

The Part Truckload (PTL) services business revenue increased to `293 crore from `259 crore in the June 2022 quarter with total network freight volume of 286,000 tonnes in Q2FY23 against  239,000 tonne in Q1FY23. The company attributed the continued steady recovery in the segment post the integration of the Delhivery and Spoton networks.

Other service lines of Delhivery also continued growth with 91% revenue growth in truckload services to `103 crore during the quarter, 62% revenue growth in supply chain services at `180 crore, and 21% revenue growth in cross border services to `96 crore. 

The supply chain services business continued to win new mandates with active/won accounts doubling in this period from a year ago. Cross border services showed steady growth despite a challenging global business environment and a decline in yields for both air and ocean freight, company said in a statement.

“With the integration of Spoton behind us we remain optimistic about the future. Our structural cost and network advantages coupled with investments in technology, automation and our extremely strong balance sheet position us to strengthen our market position across segments in the Rs 15 lakh crore Indian logistics industry”, said Sahil Barua, managing director and chief executive officer, Delhivery.