Indian logistics services firm Delhivery reported a fourth-quarter profit on Friday, as higher spending to attract client demand paid off amid tough competition from e-commerce firms’ pivot to in-house logistics. The company’s consolidated profit came in at 725.6 million rupees ($8.5 million) for January-March, compared to a loss of 684.7 million rupees a year earlier.
Revenue from operations rose 6% to 21.92 billion rupees, and while the company’s freight handling and servicing spends rose 3%, cost control on other fronts kept its total expenses largely unchanged from last year.
Cargo movers such as Delhivery have been spending more to attract clients and fend off intensifying competition, at a time when e-commerce firms such as Amazon, Walmart-backed Flipkart and Meesho are increasing distribution through in-house logistics.
The expenditures paid off in attracting client demand, with Delhivery’s core profit margin expanding to 12.2% from 11.5% a year earlier. Volumes at Delhivery’s express parcel business, which accounts for nearly 60% of overall revenue, grew 1% versus Elara Securities’ estimate of 2%. This segment includes partnerships with Amazon, Flipkart and Meesho.