Delhivery reports strong financial results for Q2 FY25, but concerns over rising debt and non-operating income

Delhivery, a leading logistics company in India, has recently announced its financial results for the quarter ending September 2024. The company has shown positive performance in this quarter, with a steady score over the past three months.

According to the financial report, Delhivery’s Profit After Tax (PAT) for the quarter was Rs 10.20 crore, which is a significant growth of 150.0% compared to the average PAT of the previous four quarters. This indicates a positive trend in the company’s near-term profitability.

In terms of cash flow, Delhivery has generated the highest Operating Cash Flow of Rs 472.40 crore annually in the last three years. This shows that the company has been able to generate higher revenues from its business operations.

However, there are some areas that need improvement for Delhivery. The company’s interest cost has increased by 39.96% in the last nine months, indicating a rise in borrowings. Additionally, the company’s non-operating income is 1,387.47% of its Profit Before Tax (PBT), which suggests that the company’s income from non-business activities is high and may not be sustainable in the long run.

Moreover, Delhivery’s Debt-Equity Ratio has been the highest at 0.15 times in the last five half-yearly periods. This indicates that the company is relying more on borrowings to fund its operations, which may lead to a stressed liquidity situation.

In conclusion, Delhivery has shown positive financial performance in the quarter ending September 2024, but there are some areas that need to be addressed for sustainable growth in the future. Investors should take note of these factors before making any investment decisions.