Swiggy net loss nearly doubles to Rs 1,197 cr in Q1

New Delhi, Jul 31 (PTI) Swiggy on Thursday reported widening of its losses on a consolidated basis to Rs 1,197 crore for the June quarter, dragged down by the Rs 896-crore loss from its quick commerce business Instamart.

The company had reported a loss of Rs 611 crore in the year-ago period.

However, its total income increased substantially to Rs 5,048 crore, from Rs 3,310 crore a year ago, the company said in a regulatory filing.

Its expenses shot up to Rs 6,244 crore, from Rs 3,908 crore during the April-June period on a year-on-year basis, it said.

In a letter to shareholders, the company said its food delivery growth has accelerated over the last couple of years.

"At 18.8 per cent, we have demonstrated our second fastest year-on-year growth over the last nine quarters... We remain confident of our high-teens growth outlook in the near term. We expect to improve on the growth in the medium-term as newer use-cases gain consumer traction," Swiggy stated.

The company said overall, quick commerce posted a Rs 896-crore loss for the quarter, and adjusted EBITDA margin improved to -15.8 per cent from -18 per cent. However, its (gross order value) GOV growth accelerated to 107.6 per cent YoY (21.1 per cent QoQ) to Rs 5,655 crore.

"Instamart has continued to ramp-up its assortment by not just adding categories to existing darkstores but also increasing the size of stores to allow for the expanded selection and better availability. Over the last quarter we have added 41 darkstores (on a net basis) to reach 1,062 stores, while churning out or expanding older small-format stores as well as scaling up to 59 megapods.

"As a result, our average darkstore size increased by another 4 per cent QoQ to 4045 sq ft," Swiggy said.

Swiggy's scrip closed at Rs 403.80, up 0.62 per cent from its previous close on the Bombay Stock Exchange. PTI RSN TRB TRB