Q3 Earnings Season: Swiggy, Info Edge, and More Set to Announce Results
The Q3 earnings season is in full swing, with approximately 124 companies scheduled to release their financial results. Investors are keenly awaiting updates from key players such as Swiggy and Info Edge, among others.
Key Companies Announcing Results
Apart from Swiggy and Info Edge, several other notable companies are set to disclose their Q3 performance. These include:
- Zydu's Lifesciences
- Sula Vineyards
- Sagility India
- Innova Captab
- CMS Info Systems
- AGI Infra
- Asia Capital
- CCL Products
- Abbott India
Swiggy Q3 Expectations: Revenue Growth and Expanding Losses
All eyes are on Swiggy, the food delivery and quick commerce giant, as it prepares to announce its Q3 earnings. While a sequential improvement in revenue is anticipated, analysts predict a widening of losses. Here's a breakdown of the expectations:
Revenue Projections
Estimates suggest that Swiggy's revenue will experience a 12% quarter-on-quarter (QoQ) increase, reaching approximately Rs 4,035 crore. This growth is expected to be fueled by the strong performance of both its food delivery and quick commerce segments.
Loss Projections
Despite revenue growth, Swiggy's losses are projected to expand, potentially reaching around Rs 700 crore. This increase is attributed to competitive pressures and ongoing expansion efforts.
Food Delivery Business
The gross order value (GOV) for Swiggy's food delivery business is forecasted to achieve a 19% year-over-year (YoY) growth rate, with a take rate of 22%. The adjusted EBITDA margins, as a percentage of GOV, are anticipated to improve by 20 basis points QoQ to 1.8%. Monthly transacting users (MTUs) are expected to grow to 15.2 million, compared to 14.7 million in the previous quarter.
Instamart Performance
Swiggy's quick commerce platform, Instamart, is projected to report sequential GOV growth of 18%, driven by a robust increase of 13% in order volumes. This growth is expected to be supported by an increase in MTUs. Take-rates are expected to improve to 14.9% from 14.5% in the second quarter.
Challenges and Outlook
Despite positive growth in key segments, Instamart's contribution margin is expected to contract to -3.6%, primarily due to aggressive dark store expansion and a highly competitive environment. The quick commerce business is projected to report a -10% adjusted EBITDA margin in Q3.
Disclaimer: The views and investment tips expressed in this article are for informational purposes only and do not represent financial advice. The views expressed are those of the sources cited and not necessarily those of this website or its management. Investing in equities or other financial instruments carries the risk of financial loss. Readers must exercise due caution and conduct their own research before making any investment decisions. We are not liable for any losses incurred as a result of decisions made based on this article. Please consult a qualified financial advisor before making any investment.
0 comments:
Post a Comment