Swiggy’s share price opened Wednesday’s trade 1% lower at Rs 328.80 but soon surged to trade in the green. It was up 1.3% at Rs 336.45. On April 01, The company received a tax order of Rs 158 crore after the stock markets closed. The order from the Income Tax Department, Central Circle, Bangalore alleged that the cancellation charges paid to merchants are disallowed under the Income Tax Act.
The second violation by the company is that the interest income on income tax refund has not been offered to tax.
“Pursuant to Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulation, 2015, this is to inform that the Company has received an order for the period April 2021 to March 2022 passed by Deputy Commissioner of Income-tax, Central Circle – 1(1), Bangalore,” read an exchange filing. “The Company has received an assessment order for the period April 2021 to March 2022 where an addition of Rs 158,25,80,987/- (One Hundred and Fifty-Eight Crores Twenty Five Lakhs, Eighty Thousand Nine Hundred and Eighty Seven only) has been made.”
According to the company, the order will not have a major impact on its financials and operations. Swiggy will be challenging the order before the appropriate authorities. “The Company believes that it has strong arguments against the Order and is taking necessary steps to protect its interest through review/appeal,” read the filing.
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The company reported that its consolidated losses widened to Rs 799 crore in Q3 FY25, compared to Rs 574 crore in the same period of the previous financial year. However, its revenue from operations stood at Rs 3,993 crore for the quarter ending December of FY25, an increase of 31% YoY, as against Rs 3,049 crore in the corresponding quarter of the last fiscal.
Swiggy’s stock performance
In the last five trading sessions, the share price of Swiggy has fallen 0.80%. It has given a return of 1.46% in the past one month. However, the stock has erased more than 27% of investors’ wealth since it got listed on the bourses in November 2024.
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