Ecom Express’ scale surpasses Rs 2,000 Cr in FY22, slips into losses

Ecom Express has emerged as the second largest e-commerce focused logistics company in India as its topline crossed the Rs 2,000 crore threshold in FY22. However, the CDC Group-backed company has slipped into losses on the back of increased expenditure. 

Collection from logistic services was the only source of operating income for Ecom Express that grew 30.6% to Rs 2,127 crore in FY22 from Rs 1,629 crore in FY21, as per the company’s annual financial statements with the Registrar of Companies (RoC).

Ten-year-old Ecom Express is a technology-driven logistic solution for the e-commerce industry. As per Fintrackr’s analysis, the company also made Rs 34.73 crore from interest on fixed deposits in FY22.

On the expense side, the cost of material accounted for 51% of the total cost which ballooned 46.1% to Rs 1,157 crore in FY22 from Rs 792 crore in FY21. Employee benefits expenses grew 19.2% to Rs 546 crore,  accounting for nearly 24% of the total expense.

Rental cost increased 35.7% to Rs 57 crore in FY22, while the company spent Rs 63 crore on repairs and maintenance.  For context, the firm claims to cover more than 27,000  pin codes with over 3,000 delivery centers and 45,00,000 square feet under its management.

The Warburg Pincus-backed firm spent another Rs 39 crore on telephone and postage,  pushing the overall cost by 40.7% to Rs 2,269 crore in FY22.

The increased expenses has pushed Ecom Express into losses and the company posted a loss of Rs 91 crore in FY22. During FY21, it had recorded a profit of Rs 43 crore. ROCE (Return of Capital Employed) stood at -3.70% while the EBITDA margin remained positive at 4.12%. On a unit level, the firm spent Rs 1.07 to earn a rupee in FY22

In October, Ecom Express raised $39 million from existing investors including CDC group and Partners Group. It is looking to raise another $167 million through the right issue. While the company has put its IPO plans on hold, Delhivery, one of its competitors, listed on the bourses in May this year. Ecom Express also competes with XpressBees and Shadowfax which posted Rs 1,905 crore and Rs 990 crore topline in FY22, respectively.