Swiggy Q2 Results & Share Price Highlights: Swiggy narrows loss to ₹625.53 crore, revenue jumps 30%. Shares trade up by 1.2%

Food and delivery major Swiggy has reported a 5% decrease in net loss to ₹625.53 crore in the July-September 2024 quarter compared to ₹657 crore last year. 

On a sequential basis, the loss increased 2.32% from ₹611 crore. The operating revenues increased by 30% to ₹3,601 crore during the same period as compared to ₹2,763.33 crore in the year-ago period. On a sequential basis, it was up by 12% from ₹3,222.21 crore. 

Swiggy’s consolidated adjusted EBITDA loss declined 30% year-on-year (YoY) to ₹341 Cr in Q2 FY25. Overall gross order value (GOV) grew 30% YoY to ₹11,306 Cr during the quarter under review. 

The company is declaring its results for the first time since it went public last month. 

Read more here.

Food and grocery delivery firm Swiggy reported a narrower quarterly loss on Tuesday as the newly listed company saw robust order growth in both its food delivery and quick commerce segments.

Swiggy, which made its trading debut on November 13, reported a second-quarter consolidated loss of ₹626 crore ($74 million) compared to a loss of ₹657 crore.

Sriharsha Majety Co-founder, MD & Group CEO Swiggy Ltd, said in a note to shareholders, “Swiggy Instamart is at an inflection point. The Quick-commerce category is expanding to more geographies, consumer shopping missions, and categories in retail. Over the past year, we have pivoted our network to larger and more optimized darkstores which now house nearly 3x SKUs. We are increasing our store counts as well, and added 52 stores in Q2, taking our dark store footprint to ~2Mn sq ft (up 54% YoY). This has resulted in our national average delivery times reducing to 13 minutes in Sep-24 from 17 minutes a year ago.”

“Swiggy’s Food delivery business continues to gain strength every quarter, and our GOV has grown 5.6% QoQ in Q2FY25. The business has ramped up profitability significantly, with Adjusted EBITDA margins improving by nearly 1,000 bps over the past 2.5 years, to 1.6% in Q2FY25,” said, Sriharsha Majety Co-founder, MD & Group CEO Swiggy Ltd, in a note to shareholders.

“Swiggy Dineout is one of the very selective and strategic acquisitions we have made in our history; and the integration of Dineout on our unied app has demonstrated the power of our one-app play. Within 2 years of acquisition and integration, Dineout today boasts of nearly 35K active and 65K listed restaurants. A 46% YoY GOV growth in Q2FY25 has taken the business to within striking distance of breaking even, with Adjusted EBITDA margins at -1.3%. We continue to take steps to unlock the growth potential of this category, through restaurant-based events and some innovations in the pipeline as well,” said, Sriharsha Majety Co-founder, MD & Group CEO Swiggy Ltd, in a note to shareholders.

* SWIGGY Q2 CONSOL LOSS ₹626 crore 

* SWIGGY Q2 CONSOL REVENUE FROM OPERATIONS 36.01 BILLION RUPEES

* SWIGGY - INVESTMENT IN THE EQUITY SHARES OF SCOOTSY LOGISTICS OF 16 BLN RUPEES

* SWIGGY - APPROVED INCORPORATION OF A WHOLLY OWNED SUBSIDIARY

Swiggy reported standalone net loss for the quarter ended September 2024 at ₹409.88 crore, down 3% from net loss of ₹590.76 crore in the corresponding quarter last year. 

Swiggy board has approved investment in equity shares of Scootsy Logistics Private Limited, the wholly owned subsidiary of the Company (Scootsy), up to an amount not exceeding ₹1600 crore in one or more tranches, by way of subscription to rights issue.

Swiggy shares traded at ₹513.35 on the NSE, higher by 3.98% as at 3.12 pm.

Shares of Swiggy traded at ₹513 on the NSE, higher by 3.91% as at 2.31 pm.

(NSE data)

“The Exchange has sought clarification from Swiggy Limited with respect to recent news item captioned Swiggy expands 10-minute food delivery service Bolt to over 400 cities. The response from the Company is awaited”

- NSE disclosure

On-demand convenience platform Swiggy Ltd on Monday said it has expanded its 10-minute food delivery offering, Bolt, to over 400 cities and towns across India.

Initially launched in Bangalore, Chennai, Hyderabad, New Delhi, Mumbai, and Pune, Bolt is now active in cities like Jaipur, Lucknow, Ahmedabad, Indore, Coimbatore, and Kochi as well, Swiggy said in a statement.

Swiggy has expanded the 10-minute food delivery service to Tier-2 and Tier-3 cities such as Roorkee, Guntur, Warangal, Patna, Jagtial, Solan, Nashik and Shillong among others, it added.

Andhra Pradesh and Telangana have witnessed the highest adoption for Bolt followed by Haryana, Tamil Nadu, Gujarat, West Bengal, Rajasthan and Punjab, it added.

Swiggy said it is actively partnering with restaurants to optimise order prioritisation for Bolt orders that have food items with minimum or no preparation time.

“To ensure safety of delivery partners, they are not informed of the distinction between Bolt and regular orders, and there is no incentive for fast delivery. The delivery radius for Bolt is limited to 2 km as of now which also increases familiarity and enables faster delivery,” the company asserted.

Additionally, the speed of delivery is optimised by prioritising delivery executives closest to Bolt outlets, it added.

Designed for speed, Bolt focuses on dishes that can be delivered without compromising on taste, freshness, or quality. It delivers food from more than 40,000 participating restaurants with a range of over 10 Lakh items to choose from, it added.

PTI

The Competition Commission of India (CCI) is unlikely to intervene on pending complaints against quick commerce platforms. 

It sees the market as highly competitive and still evolving, therefore precluding immediate regulatory action, sources said.

The All India Consumer Products Distributors Federation (AICPDF) on Wednesday reiterated concerns about predatory pricing by quick commerce platforms such as Zepto, Blinkit and Swiggy’s Instamart. There is already a pending complaint from AICPDF, which was forwarded by the Department for Promotion of Industry and Internal Trade (DPIIT) to the CCI.

AICPDF has raised alarm over alleged predatory pricing practices threatening the survival of Kirana stores.

bl reported on November 27, 2024 | Read here

(NSE data)

Shares of Swiggy traded at ₹513.25 on the NSE, higher by 3.96% as at 1.35 pm.

Swiggy shares zoomed 9.7% to hit an intraday high at ₹541.95 from the previous close of ₹493.70 on the NSE.