Food delivery major Swiggy is expected to witness meaningful improvement in key operating metrics in the fiscal second quarter earnings report, scheduled to be announced tomorrow, December 04. This will be Swiggy’s first results post the company got listed on the exchanges on November 13. The food delivery firm’s IPO was opened on November 06 and got subscribed 3.59 times while the retail section was booked 1.14 times. The issue was primarily driven by QIBs, subscribing to the issue 6.02 times. The IPO closed on November 08.
Earlier in a regulatory filing, the company had announced, “This is in furtherance to our letter dated November 26, 2024, intimating about the Board meeting scheduled on Tuesday, December 3, 2024 to inter alia, consider and approve the unaudited financial results for the quarter and half year ended September 30, 2024.”
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In a report, JM Financial said that the company is likely to deliver 6 per cent QoQ growth in the food delivery segment, which is marginally better than 5 per cent delivered by Zomato. This, it added, will be aided by growing traction for its co-branded credit card with HDFC Bank. In the quick commerce segment (Instamart), GOV growth is expected at 15 per cent QoQ vs 25 per cent delivered by Zomato’s Blinkit
JM Financial said, “Overall, we expect investors to focus on the company’s relative performance vs Zomato and management commentary on profitability improvement in food delivery and quick commerce businesses.”
Here are key expectations from Swiggy Q2 results:
Food delivery: Per JM Financial, a sequential GOV growth of around 6 per cent is forecasted during Q2 on the back of 5 per cent order volume growth. “We see MTUs growing to 14.4 million vs 14 million in Q1FY25, whereas ordering frequency and AOVs could grow c.3%/1% QoQ, respectively,” it said. Gross take-rates, it said, are likely to be sequentially flat at 25.3 per cent in Q2. As a result, sequential reported revenue growth would also be in line with GOV growth of 6 per cent. Meanwhile, contribution margin (as % of GOV) is expected to expand to 7.0 per cent from 6.4 per cent in Q1, mainly on account of lower platform discounts.
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