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The stock has fallen 22% in the last five trade sessions.
It fell 5.31% on February 4, a day prior to the company reporting its third quarter results. On February 5, Swiggy extended its losses after it reported a net loss of ₹800 crore for the December quarter, wider than the loss of ₹574 crore in the previous fiscal.
Its revenue increased by 31% to ₹3,993 crore from ₹3,049 crore in the previous year. Its earnings before interest, tax, depreciation and amortisation (EBITDA) were negative at ₹725 crore, wider than the loss of ₹525 crore in the previous year.Revenue for the Food delivery business grew by 23.5% from last year, while its EBIT stood at ₹193 crore from ₹26 crore last year.
Swiggy’s Quick Commerce business Instamart saw revenue more than double from last year. However, its EBIT loss widened to ₹528 crore from a loss of ₹310 crore last year.The stock has been under pressure since January 21, which is when its other listed rival Zomato Ltd. reported its December quarter results.
Zomato had flagged off a slowdown in the food delivery business and also mentioned that its Quick-Commerce Vertical “Blinkit”, will remain loss-making for the near-term as it accelerates its investments in expanding its dark store network.
Shares of Swiggy, which were already in correction mode from their post-listing highs, fell further post Zomato’s results. On January 28, the stock fell below its IPO price of ₹390, making a low of ₹389.
The competition between food delivery and quick commerce aggregators, Zomato and Swiggy, continues to intensify as both companies strive for dominance in these segments. If we compare Swiggy with Zomato, two things stand out — first, its quick commerce business has lagged behind Zomato, whereas its food delivery business has done better than Zomato.
Swiggy shares were trading 5.4% lower at ₹360 apiece at 10.35 am on Monday, February 5.
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