Online food delivery and quick commerce company Swiggy released its financial report for the second quarter of the current financial year on Thursday. It shows a net loss of ₹1,092 crore between July and September this year. But despite this, the company's share price rose by nearly 4% to ₹434.50 during Friday's trading session.
Despite revenue growth in the second quarter of the current financial year, the loss figure has increased. Swiggy's net loss in the second quarter of the last financial year was ₹626 crore. In the second quarter of the current financial year, it has increased to ₹1,092 crore. However, Swiggy's revenue during this period a year ago was ₹3,601 crore. This year, it has increased by 54% to ₹5,561 crore. Revenue has increased by about 12% compared to the first quarter of the current financial year.
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Despite the net loss, order values and users have increased in Swiggy's various businesses. The gross order value in this company's food delivery segment has increased by 18.8 % compared to last year. Monthly transacting users have increased by 17.2% to reach 1.72 crore.
In Swiggy's quick commerce business, too, gross order value has increased by 107.6% compared to last year and 24.2 % compared to the last quarter. Presence in various cities has also increased during this period.
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Even after this financial report for the second quarter of the current financial year, brokerage firm Morgan Stanley has not made any change to its 'overweight' rating on Swiggy stock. It has also kept the target price at ₹450. However, ICICI Securities has maintained a 'buy' rating on this stock. Alongside this, Swiggy plans to raise ₹10,000 crore from the market through Qualified Institutional Placement. A decision on this will be taken at the Board of Directors meeting on November 7. Experts believe that despite the net loss, these various factors have impacted Swiggy's share price, according to experts.
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