Swiggy's share price rose 3 percent to Rs 517 in early trade today following the announcement of its Q2 FY25 results, which showcased robust revenue growth and a narrowing of losses. The stock had already gained 1.7 percent yesterday, closing at Rs 502 ahead of the earnings announcement.
Food tech and grocery delivery company Swiggy reported a 30 percent year-on-year increase in revenue to Rs 3,601.5 crore for the July-September quarter, compared to Rs 2,763.3 crore in the same period last year. Sequentially, revenue grew from Rs 3,222.2 crore in Q1 FY25.
The company's net loss narrowed by 5 percent to Rs 625.5 crore in Q2, from Rs 657 crore a year ago, though it was marginally higher than the Rs 611 crore loss reported in the previous quarter.
This marks Swiggy’s first earnings disclosure since its public listing last month. The company also showed a significant rise in its monthly transacting users (MTU), which grew by a million during the quarter to reach 17.1 million, reflecting a 7 percent quarter-on-quarter and 19 percent year-on-year increase.
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Brokerage firm CLSA said that Swiggy's gap with larger rival Zomato has stopped widening, possibly pointing to a more competitive position in the food delivery market. In the quick commerce sector, Swiggy's Instamart competes with Zomato's Blinkit and other players like Zepto, focusing on rapid delivery services. Swiggy has been expanding its dark store network to enhance its quick commerce capabilities.
Swiggy stock has gained about 33 percent over its IPO price of Rs 390 in less than a month from listing. The company's market capitalisation is at over Rs 1.16 lakh crore.
Earlier, in November Swiggy raised over Rs 11,300 crore in an initial public offering (IPO). The public issue comprised a fresh issue of Rs 4,499 crore and an offer for sale of Rs 6,828 crore.
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