Delhivery delivering a break-even amid weak market makes D-Street happy

"We continue to invest in building capacity and so if you look at our non-cash expenditures, depreciation, amortization have grown. We typically spend close to about 6 percent of revenue on capex, we expect that to decline to 5 percent over the next year or so. Our estimate is that profitability will continue. It should take 6-8 quarters, hopefully, for us to turn free cash flow positive,” said Barua.

Following Delhivery's first financial results after its listing, the company's stock rose over 3 percent in a weak market on Tuesday but soon fizzled out and turned flat.

At 1:34 pm, shares of Delhivery were trading at Rs 528.55, up 7.15 points or 1.37 percent higher on the BSE.

"In our case, once you take out all of the one-time adjustments that we have made in FY22, actually, we are pretty close to breakeven even at a profit after tax (PAT) level. So hopefully, in the next financial year or at worst, the financial year post that we should see profits at a PAT level as well,” he added.

Delhivery’s employee benefits expenses, which include ESOP (employee stock ownership plan) costs, rose 98 percent to Rs 341 crore in the March quarter.

Delhivery launched its initial public offering (IPO) on May 11. It garnered Rs 5,235 crore, compared to the Rs 7,460 crore figure it had planned to raise earlier. On May 25, its listing day, shares of the company rose 10 percent to Rs 537 against the issue price.