Indian online delivery firm Eternal posted a more than 70% jump in first-quarter adjusted revenue, powered by a surge in orders at its quick commerce arm, Blinkit, sending shares climbing 7.5%.
The quick-commerce industry in India has grown fiercely competitive even as it records robust growth, with players such as Eternal, Swiggy and startup Zepto battling for greater market share.
Blinkit, which delivers everything from groceries to electronics in under 10 minutes, is widely seen as the segment leader, despite deep-pocketed rivals such as Tata-backed BigBasket, Walmart-owned Flipkart and Amazon stepping up their presence.
Eternal‘s revenue from operations rose to Rs 7,167 crore in the first quarter from Rs 4,206 crore a year ago. Its stock climbed as much as 7.5% to Rs 277 after the results, its highest level since Feb. 3, before closing 5.64% higher.
However, the company reported a 90% slump in consolidated net profit to Rs 25 crore ($2.90 million), weighed by higher costs at Blinkit.
Quick commerce players have been rolling out steeper discounts and subsidised or free deliveries while rapidly expanding their network of “dark stores” or distribution hubs to fend off competition, squeezing their margins.
Eternal‘s overall expenses jumped nearly 79% to Rs 7,433 crore.
Reuters
