Swiggy's net loss almost doubles to ₹1,197cr in Q1
What's the story
Swiggy, India's leading food delivery platform, has reported a massive net loss of ₹1,197 crore for the June quarter. This is nearly double the loss of ₹611 crore in the same period last year. The company's quick commerce division "Instamart" was mainly responsible for these losses as they widened from last year's figures.
Financial impact
Losses widen on EBIT basis
On an Earnings Before Interest and Tax (EBIT) basis, the loss ballooned to ₹797 crore from ₹379 crore last year. Despite these challenges, Swiggy managed to grow its revenue for the quarter by a whopping 54% YoY to ₹4,961 crore, from ₹3,222 crore in the same period the previous year.
Cost analysis
EBITDA loss balloons to ₹954cr
Swiggy's Earnings Before Interest, Tax, Depreciation, and Amortization (EBITDA) also took a hit, posting a loss of ₹954 crore as opposed to ₹544 crore in the same quarter last year. Total expenses for the company surged 60% YoY to ₹6,244 crore during this period. This was mainly due to higher delivery costs, advertising spends, employee benefits and logistics expenses in its quick commerce segment.
Expense breakdown
Rising delivery costs, advertising spends impact margins
Swiggy's delivery-related costs alone were ₹1,313 crore, while advertising and promotion spends stood at ₹1,036 crore. The company's EBITDA margin remained negative due to continued investments in growth verticals and rising operating costs.