Logistics Company Ecom Express Fy23 Revenue Reaches Rs 2,500 Cr, Losses Increase 4X

Ecom Express

Three points you will get to know in this article:

  • Ecom Express achieved a notable 20% revenue growth in FY23.
  • The company faced higher losses from increased shipping and employee benefits.
  • Ecom Express delayed IPO, got funds from investors, showed resilience.

Introduction to Ecom Express

Ecom Express Limited is a leading logistics solutions provider in India, specializing in end-to-end technology-enabled services for the retail and e-commerce industry. Established in 2012 and headquartered in Gurugram, Haryana, the company was founded by Manju Dhawan, K. Satyanarayana, Late T. A. Krishnan, and Late. Sanjeev Saxena, who collectively possess extensive experience in the Indian logistics and distribution services sector. Ecom Express covers 29 states and 6 union territories, serving 2,700+ cities and towns, and 27,000+ pin codes across India. Their services include first-mile pickup, processing, network operation, last-mile delivery, reverse logistics, returns management under Ecom Express Services (EXS), as well as supply chain, storage, and fulfillment solutions under Ecom Fulfillment Services (EFS).

Ecom Express Financial Performance in FY23

Ecom Express, a company that focuses on e-commerce logistics, saw a significant 20% growth in the fiscal year ending March 2023. However, their losses surged four times due to steep rises in shipping and employee benefit expenses during the same period. On a brighter note, Ecom Express witnessed a healthy 21.9% increase in operational revenue, reaching Rs 2,548 crore in FY23 from Rs 2,090 crore in FY22.

Ecom Express, a logistics company specializing in e-commerce, has been thriving since its inception twelve years ago. Almost all of its revenue, a whopping 90%, comes from providing courier services. This sector experienced a notable growth of 17.5% in the fiscal year 2023. The rest of the earnings are generated from warehousing services, showcasing the company’s diverse portfolio.

Moreover, Ecom Express accumulated an additional Rs 34 crore through interest on deposits and investments, contributing to its total income of Rs 2,582 crore in FY23. This impressive financial performance underscores Ecom Express’s pivotal role in facilitating e-commerce operations across the country.

Rise in Delivery Expenses

In the fiscal year 2023, Ecom Express saw a significant rise in its delivery expenses, which made up 48.5% of its total spending. This marked a 22.2% increase from the previous year, reaching Rs 1,386 crore compared to Rs 1,134 crore in FY22.

Additionally, the company’s spending on various operational aspects like employee benefits, rent, repairs, legal services, safety measures, and other overheads contributed to a total expenditure of Rs 2,856 crore in FY23. This reflected a notable 30.7% surge from Rs 2,185 crore in FY22.

The rise in shipping expenses and the additional employee benefits took a toll on Ecom Express, causing a significant increase in its losses. In the financial year 2023, its losses surged to Rs 375 crore from Rs 91 crore in the previous year. The Return on Capital Employed (ROCE) plummeted to -21%, and the Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) margin dropped to -5.2%. In simpler terms, for every rupee earned, the company had to spend Rs 1.12 in the financial year 2023.

Ecom Express Investors and IPO Plans

The company, supported by Warburg Pincus, has garnered over Rs 2,000 crore ($240 million) until now. Warburg Pincus held the largest share at 48.26%, followed by Partners Ground and CDC Group. Ecom Express had plans to launch its initial public offering (IPO) in early 2022 after giving the green light to raise funds through a public share issue. However, it decided to delay its listing in October 2022 and instead reached out to existing investors, managing to secure $39 million during the same period.

In the fiscal year ending March 2023, Ecom Express achieved a commendable 20% growth in revenue but faced a substantial surge in losses due to escalated shipping and employee benefit expenses. The company’s pivotal role in e-commerce logistics was emphasized by its 21.9% increase in operational revenue, primarily driven by a 17.5% growth in courier services. However, the rise in delivery expenses, constituting 48.5% of total spending, contributed to a significant increase in losses. Furthermore, the decision to delay its IPO and secure funds from existing investors highlighted the company’s strategic financial navigation in response to the challenges it faced.

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