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Informist, Friday, May 9, 2025

 

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--Swiggy Jan-Mar consol net loss INR 10.81 bln 
--Analysts saw Swiggy Jan-Mar consol net loss INR 9.36 bln 
--Swiggy Jan-Mar consol net loss INR 10.81 bln vs INR 5.55 bln loss year ago 
--Swiggy Jan-Mar consol revenue INR 44.10 bln vs INR 30.46 bln year ago 
--Swiggy FY25 consol net loss INR 31.17 bln vs INR 23.50 bln loss year ago 
--Swiggy Jan-Mar quick commerce revenue INR 6.89 bln vs INR 3.21 bln year ago 
--Swiggy Jan-Mar supply chain, distirbution sales INR 20 bln vs INR 12.7 bln 
--Swiggy Jan-Mar food delivery revenue INR 16.29 bln vs INR 13.76 bln yr ago 
--Swiggy FY25 consol revenue INR 152.27 bln vs INR 112.47 bln year ago 
 

 

By Anand JC

 

MUMBAI – Swiggy Ltd.'s consolidated net loss for the March quarter was nearly double that of the previous year and higher than consensus estimates. The on-year and on-quarter rise in loss for the quarter was on account of a sharp uptick in expenses incurred, mainly on marketing and delivery-related charges, the company said in a notice to the exchanges Friday.

 

Swiggy reported a consolidated net loss of INR 10.8 billion for the March quarter, 35% higher than in the December quarter and much higher than INR 5.3 billion in the year-ago quarter. Its revenue from operations stood at INR 44.1 billion, up over 10% on quarter and nearly 45% on year.

 

Total expenses incurred by Swiggy in the March quarter were INR 56.1 billion, up 15% sequentially and 53% on year. This sharp rise in expenses was because of year-on-year rise in staff costs, finance costs, depreciation costs, and other expenses. Among other expenses, Swiggy incurred an advertising and sales promotion expense of INR 9.8 billion in the March quarter, up 30% on quarter and 1.3 times the cost incurred in the base quarter.

 

The Swiggy Instamart-owner incurred delivery and related charges of INR 11.6 billion for the March quarter, up only 3% sequentially but 27% higher on year.  

 

Swiggy's business-to-consumer gross order value in the March quarter was INR 128.9 billion, up 6% sequentially and 40% on year. The company's Swiggy platform reported consolidated adjusted earnings before interest, taxes, depreciation, and amortisation loss of INR 7.3 billion, higher than the loss of INR 3.6 billion in the base quarter and loss of INR 4.9 billion in the preceding quarter.

 

Total business-to-consumer orders on the Swiggy platform stood at 246 million in the March quarter, higher than 198 million year ago quarter and 234 million in the December quarter.

 

Swiggy's food delivery business recorded a gross order value of INR 73.5 billion in the March quarter, down 1.2% sequentially but up 18% on year. Adjusted revenue from this business stood at INR 18.7 billion, largely unchanged sequentially but up nearly 20% on year. "Food delivery is a relatively mature category, and we believe that sustained growth from hereon will be led by innovation towards bringing new consumers into the ecosystem and new meals into Food delivery carts," Swiggy's co-founder and Managing Director Sriharsha Majety said in an investor presentation.

 

This business' adjusted EBITDA for the reporting quarter was INR 2.1 billion, up from INR 330 million in the base quarter and INR 1.8 billion in the December quarter. Adjusted EBITDA margin of the food delivery business was 2.9%, up 40 basis points sequentially and 240 bps on year. Swiggy expects this segment's revenue to grow 18-22% over the medium-term.

 

QUICK COMMERCE

The gross order value of Swiggy's quick commerce business grew to INR 46.7 billion from INR 23.2 billion in the year-ago quarter and INR 39.1 billion in the December quarter. Majety said this business is in the midst of a rapid expansion phase amid increasing consumer preference for this trade channel, and the resultant high competitive intensity. The adjusted top line from this segment for the March quarter was INR 7.3 billion, up 22% sequentially and over double that of INR 3.4 billion earned in the year-ago quarter.

 

Swiggy's quick commerce services are currently available in 124 cities. The company added 316 darkstores in the March quarter, taking the overall tally to 1,021 stores as of Mar. 31, up 45% sequentially. "Overall, in Q4 we added more darkstores than we added cumulatively over the past 8 quarters, and gained more MTUs (monthly transacting users) than we did in the last 6 quarters combined," Majety said. Order contribution from the newer darkstores were low in the March quarter as most of them were added in the second half of the quarter.

 

Swiggy added 412 darkstores in the last six months, nearly 33% of which were added in 80 new cities. Rest were added in metros where the company already had a presence and tier-I towns, a move aimed at densification of its presence and servicing increased demand.

 

The segment got 88.6 million orders in the March quarter, up 21% sequentially and 77% on year. The average value per order in the quarter fell 1.3% sequentially to INR 527, but grew 13% on year. Quick commerce segment reported an adjusted EBITDA loss of INR 8.4 billion, higher than INR 5.8 billion loss in the December quarter and INR 3.1 billion in the base quarter.

 

"We believe that Instamart reached the peak of Adjusted EBITDA losses in late-Q4; and from hereon, we expect to progressively unwind losses, the pace of which will be determined by our expansion of AOV (average order value) and take-rates, and the nature and quantum of competitive intensity," Majety said.

 

Swiggy reported its earnings after the market closed. Its shares ended Friday's session at INR 313.10 on the National Stock Exchange, down 0.7%.  End

 

Edited by Ashish Shirke

 

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