Shares of Swiggy on Friday dropped more than 7% after its December quarter earnings failed to cheer investors. The stock hit an eight months low and is trading at Rs 309.15 a piece.
The stock is down after the food delivery and quick commerce major Swiggy on Thursday reported a widening of its losses for the third quarter ended December at Rs 1,065 crore, as losses from the quick commerce segment continued and rising advertising and sales expenditure.
During the Q3 under review, Swiggy's revenue from operations shot up to Rs 6,148 crore, from Rs 3,993 crore a year ago, a regulatory filing showed. However, its total expenses also increased to Rs 7,298 crore, from Rs 4,898 crore in the comparable third quarter period of the last fiscal.
In the letter to shareholders, Swiggy stated that over the past four quarters of heightened competition, the company has moved some amount of consumer-facing investments around the Profit & Loss to fulfil key business objectives that lead to longer-term structural improvements.
During the third quarter under review, Swiggy's food delivery business Gross Order Value (GOV) growth accelerated to 20.5% YoY, to Rs 8,959 crore, reports news agency PTI.
Swiggy Consolidated Q3
- Net Loss At Rs 1,065 crore Vs Loss Of Rs 799 crore YoY
- Revenue [GU] 54% At Rs 6,148 crore Vs Rs 3,993 crore YoY
- EBITDA Loss At Rs 782 crore Vs Loss Of Rs 725 crore YoY
Swiggy Share Price Today
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The scrip fell as much as 7.78% to Rs 309.15 apiece. This compares to a 0.44% decline in the NSE Nifty 50 Index.
Total traded volume so far in the day stood at 13.88 times its 30-day average. The relative strength index was at 52.95.
Out of 28 analysts tracking the company, 23 maintain a 'buy' rating, three recommend a 'hold,' and two recommend 'sell' rating, according to Bloomberg data. The average 12-month consensus price target of Rs 449.45 implies an upside of 47.2%.
ALSO READ: Swiggy's New Growth Diet Leaves Analysts Hungry For Clarity — Check Revised Targets
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