In a strategic move to reward and retain talent, Delhivery, a major player in logistics and supply chain management, has approved the allotment of 1,66,122 employee stock options (ESOPs).
The decision was made by the Nomination and Remuneration Committee (NRC) of the company’s Board of Directors on August 2, 2024.
The ESOPs, each with a face value of INR 1, will be granted under the Delhivery Employees Stock Option Plan 2012 (ESOP-2012).
Vesting Schedule and Allocation
Out of the total stock options, 46,122 will follow a staggered vesting schedule:
- 10% will vest after 12 months from the date of grant
- 30% will vest after 24 months from the date of grant
- The remaining options will vest at a rate of 15% every six months thereafter
The remaining 120,000 stock options will vest according to the following schedule:
- 20% will vest after 12 months from the date of grant
- 20% will vest after 24 months from the date of grant
- The remaining options will vest at a rate of 15% every six months thereafter
The goal of these ESOPs is to align the interests of the employees with those of the shareholders, enhancing motivation and retention.
Earnings Report and Comparisons
The company has posted a revenue from services of ₹2,172 crore for Q1 FY25, reflecting a year-on-year growth of 12.6% and a quarter-on-quarter increase of 4.7%.
Net Profit After Tax (PAT) stands at ₹54 crore with a PAT margin of 2.4%, a significant turnaround from a loss of ₹89 crore (PAT margin of -4.4%) in Q1 FY24 and a loss of ₹69 crore (PAT margin of -3.1%) in Q4 FY24.
The ESOP grant is seen as a strategic effort by Delhivery to foster long-term commitment among its workforce. This move follows Delhivery’s recent issuance of 36,525 stock options in July .
