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MUMBAI : Delhivery Ltd, a technology-based logistics firm, expects to turn cash flow positive over the next six to eight quarters, said co-founder and chief executive Sahil Barua.

The Gurugram-based firm announced on Monday its first quarterly results since listing on the domestic stock exchanges. Delhivery posted adjusted Ebitda (earnings before interest, taxes, depreciation and amortization) of 72 crore in the three months ended March.

“Investors are not uncomfortable with operationally profitable companies... It was important to get to operational profitability and maintain revenue growth," Barua said in an interview post the results.

Even as Delhivery reported a net loss in the March quarter, its revenue from operations doubled to 2,071 crore during the period from 1,031 crore a year earlier. Delhivery listed in May at a 10% premium following a lull of post-listing debacle of consumer-tech companies such as Zomato, Paytm and Nykaa.

Barua said capital markets ultimately value a good business correctly in the long-run. “Markets today are sending a signal that business models have o be long-term and robust and this is not unique to India. If companies do not demonstrate a clear path to profitability, they will be punished. We are operationally profitable and investing in growth. We are not losing money and investors are seeing this," he said.

Noting that Delhivery is often compared with consumer-tech companies, Sandeep Barasia, chief business officer at Delhivery said, “If you think of us as consumer-tech company, then we are grossly undervalued. Because if you look at all those consumer-tech firms listed recently, their revenues are not growing as much as ours. Our revenues are 4x of those companies; we are growing at 65% pace along with operating profitability."

Delhivery’s capital expenditure fell to 6.2% as of today from 7% a year earlier and the company expects this to further drop to 5% in the future. Delhivery was founded in 2011 by Barua, Mohit Tandon, Bhavesh Manglani, Suraj Saharan, and Kapil Bharati as a hyperlocal express logistics services firm. It became a unicorn in 2019.

The firm is largest and fastest-growing fully-integrated and tech-enabled logistics services provider with a network covering over 18,000 pin codes, providing a suite of logistics services.

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