The following discussion is intended to convey the managements perspective on our financial condition and results of operations for the three months ended June 30, 2024 and 2023, andfor Fiscals 2024, 2023 and 2022. Unless otherwise stated, the financial information in this section has been derived from the Restated Consolidated Financial Information.
Our financial year ends on March 31 ofeach year. Accordingly, references to "Fiscal 2024", "Fiscal 2023" and Fiscal 2022", are to the 12-month period ended March 31 of the relevant year. References to 3MFY2025 and 3MFY2024 are to the three months ended June 30, 2024 and 2023, respectively.
Ind AS differs in certain respects from Indian GAAP, IFRS and U.S. GAAP and other accounting principles with which prospective investors may be familiar. Please also see "Risk Factors — External Risks — Significant differences exist between Ind AS and other accounting principles, such as IFRS and U.S. GAAP, which may be material to investors assessments of our financial condition, result of operations and cash flows" on page 64. This discussion contains certain forward-looking statements that involve risks and uncertainties. Our actual results may differ materially from those anticipated in these forward- looking statements as a result of certain factors, such as the risks set forth in the chapters entitled "Risk Factors" and "Forward-Looking Statements" beginning on pages 33 and 32, respectively.
Unless otherwise indicated, Industry and market data used in this section have been derived from the report titled Report on Indian Hyperlocal Commerce Opportunity dated September 24, 2024 (the "Redseer Report") prepared and issued by Redseer Strategy Consultants Private Limited ("Redseer"), which has been exclusively commissioned by andpaidfor by us in relation to the Offer for the purposes of confirming our understanding of the industry in which we operate. The data included herein includes excerpts from the Redseer Report and may have been re-ordered by us for the purposes ofpresentation. For further details and risks in relation to the Redseer Report, see "Risk Factors - Internal Risks - Certain sections of this Updated Draft Red Herring Prospectus-I contain information from the Redseer Report which has been exclusively commissioned and paid for by us in relation to the Offer and any reliance on such information for making an investment decision in this offering is subject to inherent risks" on page 60. The Redseer Report will form part of the material documents for inspection and will be available on the website of our Company at https://www.swiggy.com/corporate/investor-relations/from the date offiling of the Updated Draft Red Herring Prospectus-I until the Bid/Offer Closing Date.
Overview
Swiggy is a new-age, consumer-first technology company offering users an easy-to-use convenience platform, accessible through a unified app - to browse, select, order and pay for food ("Food Delivery"), grocery and household items ("Instamart"), and have their orders delivered to their doorstep through our on-demand delivery partner network. Our platform can be used to make restaurant reservations ("Dineout") and for events bookings ("SteppinOut"), avail product pick-up/ drop- off services ("Genie") and engage in other hyperlocal commerce (Swiggy Minis, among others) activities. Being among the first hyperlocal commerce platforms, Swiggy has successfully pioneered the industry in India, launching Food Delivery in 2014 and Quick Commerce in 2020, and due to the pioneering status of Swiggy, it is well-recognised as a leader in innovation in hyperlocal commerce and as a brand synonymous with the categories it is present in, according to the Redseer Report (section 7, page 19).
We augment the value proposition to users through our membership programme called "Swiggy One" providing discounts and offers; in-app payment solutions like digital wallet "Swiggy Money" (a pre-paid payments instrument), "Swiggy UPI", and Swiggy-HDFC Bank credit card for additional benefits. We offer comprehensive business enablement solutions to restaurant partners, merchant partners (that sell grocery and household items on our platform) and brand partners including our alliance partners such as analytics-backed tools to enhance their online presence and user base; fulfilment services for streamlining their supply chain operations; and last-mile delivery.
We cater to users needs of ease, immediacy, quality, variety, reliability and consistency in their food, grocery and househo ld items consumption and other hyperlocal commerce needs. Although Food Delivery and Quick Commerce categories in India are large addressable markets that are witnessing rapid online penetration, they are relatively nascent and have high growth headroom, according to the Redseer Report (section 2, page 7). Due to high frequency, habit formation and recall value, these categories have the potential to unlock additional revenue through monetisation of ancillary services, as per the Redseer Report (section 2, page 7). Our experience, execution capability and network of users and partners, together with our innovation-led approach, positions us well to tap into this growing market opportunity.
Our Business Model
Revenue
We eam revenue from sale of Services and sale of goods on our platform. Our revenue from services primarily includes, (i) commissions that we charge to our restaurant partners and merchant partners which is a function of the perceived value of our offerings to them on our platform, (ii) advertising revenue that we eam from restaurant partners, merchant partners and brand partners for our advertising tools and services, (iii) fees that we charge to users and delivery partners for the use of our technology platform and (iv) subscription revenue that we eam from users for our Swiggy One membership program. Revenue from our sale of goods primarily relates to revenue earned from the sale of products as part of our Supply Chain and Distribution business, described below.
We have five business segments. The following paragraphs describe our revenue model for each business segment. For more details on our businesses, see "Our Business" starting on page 194.
Food Delivery
Revenue from our Food Delivery business includes (i) pre-agreed commissions from restaurant partners; (ii) advertising revenue from restaurant partners; (iii) fees that we charge to users and delivery partners for the use of our technology platform; and (iv) fees for other business enablement services from restaurant partners. Our Food Delivery business is our most scaled business.
Our revenue from operations from our Food Delivery business was Rs.15,153.40 million, ^11,926.12 million, ^51,601.25 million, Rs.41,299.90 million and Rs.33,913.14 million in the three months ended June 30, 2024 and 2023, and in Fiscals 2024, 2023 and 2022, respectively. In addition, we track certain KPIs for our Food Delivery business, such as gross revenue and Gross Order Value as indicated in the graphs below:
For a reconciliation, please see "- Non-GAAP FinancialMeasures" on page 359.
Out-of-home Consumption
Revenue from our Dineout business includes (i) pre-agreed commissions that we charge to our restaurant partners; (ii) a recently introduced advertising revenue from restaurant partners and brand partners; and (iii) fees that we charge to users for the use of our technology platform.
Our revenue from our SteppinOut business includes (i) revenue from sale of tickets on various ticketing platforms including ours, (ii) advertising revenue from brand partners, and (iii) fees for other business enablement services provided to restaurant partners and brand partners.
We started our Out-of-home Consumption business in Fiscal 2023 with the acquisition of Dineout. Our revenue from operations
from our Out-of-home Consumption business was Rs.458.52 million, Rs.311.25 million, Rs.1,571.86 million and Rs.776.86 million in the three months ended June 30, 2024 and 2023, and in Fiscals 2024 and 2023, respectively. In the three months ended June 30, 2024 and in Fiscal 2024 our Gross Order Value and Gross Revenue from our Out-of-home Consumption business was as follows:
Quick Commerce
Revenue from our Quick Commerce business includes (i) pre-agreed commissions from merchant partners, (ii) advertising revenue from brand partners, (iii) fees that we charge to users and delivery partners for the use of our technology platform, and
(iv) fees for other business enablement services from merchant partners. Our Quick Commerce business is our second largest business. Our revenue from operations from our Quick Commerce business was Rs.3,740.29 million, Rs.1,797.65 million, Rs.9,785.50 million, Rs.4,513.63 million and Rs.828.43 million in the three months ended June 30, 2024 and 2023, and in Fiscals 2024, 2023 and 2022, respectively.
In addition, we track certain KPIs for our Quick Commerce business, such as gross revenue and Gross Order Value as indicated in the graphs below:
For a reconciliation, please see "- Non-GAAP FinancialMeasures" on page 359.
Supply Chain and Distribution
Our revenue for supply chain and distribution services includes (i) revenue from sale of goods to wholesalers and retailers, (ii) revenue from our supply chain customers for rendering supply chain management services and (iii) other business enablement services. We recognise the cost of goods as "purchases of stock-in-trade", revenue from the sale of goods as "revenue from sale of traded goods", and revenue from supply chain management services in "revenue from supply chain services" in our restated consolidated financial information. We are authorised distributors of various leading brands in India, and we intend to expand our presence through increasing such partnerships. Our focus will be to enhance the share of value-added services and reduce dependence on low-value added trading activities. This change in business strategy will result in reduction in our trading revenues, wliile increasing the operating margins of the business.
Supply Chain & Distribution
The following graph shows the increase in our revenue from operations from our Supply Chain and Distribution business in the three months ended June 30, 2024 and 2023, and in Fiscals 2024, 2023 and 2022:
Platform Innovations
The revenue model varies based on the nature of the offering. Revenue from Platform Innovations business typically includes (i) revenue from sale of food and products, (ii) fees that we charge to our users and delivery partners, (iii) advertising fees from restaurant partners, merchant partners and brand partners, and (iv) fees for other business enablement services from restaurant partners and merchant partners.
Swiggy One
We eam subscription revenue from our Swiggy One members. See " - Principal Factors Affecting our Financial Condition and Results of Operations - Subscription revenue" on page 358 for more details.
Expenses
Our major expenses include (i) purchases of stock-in-trade, (ii) advertising and sales promotion; (iii) delivery and related charges; (iv) employee benefits expense; (v) technology and cloud infrastructure cost; (vi) outsourcing support and (vii) costs related to supply chain management services.
Purchases of stock-in-trade
Our purchases of stock-in-trade primarily include costs related to purchase of products for our Supply Chain and Distribution business.
Advertising and sales promotion
We incur advertising and sales promotion expenses to increase our user base and increase our brand awareness. For example, we offer discounts and promotions to users, including our Swiggy One members. We also engage in print and social media promotion campaigns to increase brand awareness.
Delivery and related charges:
We incur delivery and related charges which include availability fees and other incentives paid to delivery partners. It also includes costs related to onboarding delivery partners and other incentives offered to them.
Employee benefits expense:
Our employee benefits expense primarily includes (i) salaries, wages and bonus (ii) share-based payments, which include costs related to employee stock options (iii) contribution to provident and other funds, and (iv) staff welfare costs. The table below
shows our employee base for the periods indicated:
| For the three months ended June 30, | Fiscal | ||||
| Particulars | 2024 | 2023 | 2024 | 2023 | 2022 |
| Employee base I | 5,401 | 5,868 | 5,406 | 5,718 | 5,959 |
Technology and cloud infrastructure cost
Our technology and cloud infrastructure cost includes costs related to maintaining and enhancing our technology stack, and for innovating new offerings. We report this expense under Other Expenses in our Statement of Profit and Loss.
Outsourcing support
We incur outsourcing support costs which primarily include call centre charges and costs incurred towards deployment of manpower for the management of Dark Stores.
Supply chain management Services
Our supply chain management services include costs related to rendering of supply chain and distribution services to wholesalers and brand partners which includes warehouse management, logistics services and operational cost. We report this expense under Other Expenses in our Statement of Profit and Loss.
We also incur expenses such as (i) finance costs, (ii) depreciation and amortization expense, and (iii) cost of materials consumed.
Principal Factors Affecting our Financial Condition and Results of Operations
The paragraphs below discuss certain factors that have had, and we expect will continue to have, a significant effect on our financial condition and results of operations.
Increasing and retaining the number of participants on our platform, and improving engagement levels
Monthly Transacting Users and Order Frequency
The number of Monthly Transacting Users is a key driver of our business. Users are attracted to our platform as we offer multiple convenience offerings on a unified app. We also attract users by offering them discounts and promotions (both funded by us and our partners), including through our Swiggy One membership. As a result, we have seen an increase in our Swiggy platform average MTUs and Swiggy platform frequency for the three months ended June 30, 2024 and 2023, and for Fiscals
2024,2023 and 2022:
Swiggy Platform Average MTU and Swiggy Platform frequency
Our customer-focused approach to developing our platform across offerings, habit formation due to the seamless experience, and increasing propensity of users to pay for convenience continues to drive higher engagement, increase in the number of orders and user-stickiness. For details on our cohorts analysis, see "Our Business - Our Strengths - A consistently growing
network of users" on page 201. We intend to continu? increasing our user base and the frequency of their interactions on our platform by providing new use-cases addressing growing user convenience needs, better value, wider selection of food and product options, and faster delivery times.
Restaurant partners, merchant partners and brand partners
Our scale, unified app approach with adjacent categories, engaged user base, and on-demand delivery network creates meaningful opportunities for restaurant partners, merchant partners and brand partners to engage with our user base on our platform at low incremental costs. For example, merchant partners benefit from several enablement services including the ability to use space in our strategically located Dark Stores across India which reduces their fixed costs of establishing a store and provides a broader user outreach; usage of our integrated payment systems; and the enablement of the delivery of their products through our last-mile delivery network, which helps optimize their operational costs. We plan to continue enhancing the services we provide to restaurant partners, merchant partners and brand partners, including targeted online marketing tools, increasing the number of Dark Stores, on-demand delivery infrastructure, cloud-based systems, integrated payment systems and supply chain solutions, to help our partners engage more effectively with users on our platform, improve operational efficiency and provide high-quality services to users on our platform.
The following chart shows the increase in average monthly transacting restaurant partners and Active Dark Stores for the three months ended June 30, 2024 and 2023, and for Fiscals 2024, 2023 and 2022:
Food Delivery Transacting Restaurant Partners and Out-of-home Consumption Active Restaurants
Delivery partners
Swiggy is Indias largest new-age, on-demand consumer-first technology platform in terms of GOV of placed orders for a single app in the three months ended June 30, 2024, according to the Redseer Report (section 7, page 19), and is the only Quick Commerce provider cross-utilising their fleet across segments, in 32 cities as of June 30, 2024, according to the Redseer Report (section 7, page 19). This enables us to handle the highs and lows of demand efficiently, allows us to service additional orders at low costs, and provide higher earning opportunities to delivery partners. The following chart shows the increase in our average monthly delivery partners, for the three months ended June 30, 2024 and 2023, and for Fiscals 2024, 2023 and 2022.
Average Monthly Transacting Delivery Partners
We intend to continue to support our offerings with an expanding delivery network that caters to user expectations of fast delivery and reliability.
Average Order Value
Average Order Value for each of our businesses largely depends on the pnce of food or products along with the number of items being purchased by users in one order on our platform. For further details, see " Our Business - Financial and Operating Metrics" on page 196.
We offer services that cater to a wide user base by offering an assortment of affordable to premium food and product options by listing a diverse base of restaurant partners and merchant partners on our platform. This in turn results in an increase in the order size and the number of food items and products included in each order. To further enhance the attractiveness of our platform and increase our user base, stickiness and order value, we offer additional benefits such as free delivery and additional discounts.
Our Average Order Value across segments, as shown in the table below, has been increasing as we offer greater convenience to users through new innovations. Further, there is a natural increase in Average Order Value caused by inflation in prices of food and products, increase in premium product and food offerings and larger basket sizes (increase in the number of food and products in each order) as users become accustomed to convenience delivered by our platform. We have also introduced offerings that tend to have a high order value such as Dineout.
(in Z)
| Particulars | For the three months ended June 30, | Fiscals | |||
| 2024 | 2023 | 2024 | 2023 | 2022 | |
| Food Delivery | 436 | 423 | 428 | 416 | 407 |
| Out-of-home Consumption | 3,236 | 3,099 | 3,129 | 3,344 | - |
| Quick Commerce | 487 | 441 | 460 | 398 | 394 |
| Rounded off to the nearest Z | |||||
We intend to continue increasing the assortment of food and products on our platform, improve our last-mile delivery network, expand and densify our Dark Stores network, and introduce new convenience-based offerings through our innovation-led approach.
Advertising Revenue
We earn advertising revenue from restaurant partners, merchant partners and brand partners for availing our advertising and marketing services. With 112.73 million aggregate number of users that have transacted on our platform (ever transacted) since
inception as of June 30, 2024, we believe we offer our partners the unique opportunity to benefit from high return on investments by advertising on our platform across multiple offerings. Advertising is a key growth lever in hyperlocal commerce, as per the Redseer Report (section 5, page 18). We intend to continue to increase the contribution of advertising revenue further by enhancing our advertisement tools such that our restaurant partners, merchant partners and brand partners can continue to leverage our integrated platform to run unique and customized advertising campaigns, which are backed by rich insights and analytics.
Subscription revenue
We launched Swiggy One in 2021 and have scaled it over the years. Users can become Swiggy One members by paying a membership fee. As of June 30, 2024, we had 5.71 million Swiggy One members. In the three months ended June 30, 2024, the average order frequency from our Swiggy One members was 7.40x versus a platform order frequency of 4.50x. As we scale our businesses and add additional offerings, we expect additional users to avail our Swiggy One membership programme.
Cost-effectiveness of our platform
We believe that we have significant operating leverage in our operations. As we grow and our businesses mature, we expect fixed expenses to stabilize, while improving efficiency of advertising and sales promotion expense, delivery and related charges, technology and cloud infrastructure costs, outsourcing expenses and costs related to supply chain management services. For example, as our brand awareness increases for each of our offerings and as a result of our unified app approach, we expect to generate a greater number of orders from existing users or from referrals, which we expect will help us reduce our advertising and sales promotion expenses over-time. Further, we expect to optimize our other cost of operations by improving the utilization of Dark Stores by expanding the Dark Store network and by streamlining the per square foot allocation at these stores; and by reducing our delivery and related charges through a broader delivery partners network and through innovative cost management initiatives such as order batching for deliveries. Batching of orders help us service more users as we are able to allocate orders to delivery partners more efficiently, reduce cost per delivery, and facilitate higher earning opportunities for our delivery partners. As a result of these measures, our key expenses as a percentage of total income have decreased year on year and period on period as shown in the table below. The graph below represents the year on year and period on period improvement in some of our key expenses as a percentage of total income:
The chart above reflects our (i) Technology and cloud infrastructure costs of ^3,279.69 million, ^4,135.70 million, ^2,956.96 million and ^829.74 million in Fiscals 2022, 2023 and 2024, and in the three months ended June 30, 2024 as a percentage of total income; (ii) Advertising and sales promotion cost of J20,050.73 million, J25,011.60 million, J18,507.99 million and J4,453.73 million in Fiscals 2022, 2023 and 2024, and in the three months ended June 30, 2024 as a percentage of total income; and employee benefits expense of ^17,084.90 million, ^21,298.20 million, ^20,121.64 million and ^5,891.85 million in Fiscals 2022, 2023 and 2024, and in the three months ended June 30, 2024 as a percentage of total income. Our total income in Fiscals 2022, 2023 and 2024, and in the three months ended June 30, 2024 was ^ 61,197.77 million, ^87,144.53 million, ^116,343.49 million and ^33,101.11 million.
For more details, see "Our Business - Our Growth Strategies - Improve our contribution margin by scaling our operations, and expanding high margin offerings and revenue streams" on page 207. We believe the benefits of these initiatives is reflected through the improvement in our contribution margin and Adjusted EBITDA as demonstrated in the charts below. The below chart represents the year on year and period on period improvement in our contribution margin and Adjusted EBITDA (as a percentage of GOV) for our food delivery and quick commerce business.
Non-GAAP Financial Measures
In addition to our results determined in accordance with Ind AS, we believe the following Non-GAAP measures are useful to investors in evaluating our operating performance. We use the following Non-GAAP financial information to evaluate our ongoing operations and for internal planning and forecasting purposes. We believe that Non-GAAP financial information, when taken collectively with financial measures prepared in accordance with Ind AS, may be helpful to investors because it provides an additional tool for investors to use in evaluating our ongoing operating results and trends and in comparing our financial results with other companies in our industry because it provides consistency and comparability with past financial performance. However, our management does not consider these Non-GAAP measures in isolation or as an alternative to financial measures determined in accordance with Ind AS.
Non-GAAP financial information is presented for supplemental informational purposes only, has limitations as an analytical tool and should not be considered in isolation or as a substitute for financial information presented in accordance with Ind AS. Non-GAAP financial information may be different from similarly titled Non-GAAP measures used by other companies. The principal limitation of these Non-GAAP financial measures is that they exclude significant expenses and income that are required by Ind AS to be recorded in our financial statements, as further detailed below. In addition, they are subject to inherent limitations as they reflect the exercise of judgement by management about which expenses and income are excluded or included in determining these Non-GAAP financial measures. A reconciliation is provided below for each Non-GAAP financial measure to the most directly comparable financial measure prepared in accordance with Ind AS. Investors are encouraged to review the related Ind AS financial measures and the reconciliation of Non-GAAP financial measures to their most directly identifiable Ind AS financial measures included below and to not rely on any single financial measure to evaluate our business.
Gross Revenue
Swiggy Platform Consolidated Gross Revenue refers to consolidated Gross Revenue of all businesses i.e. (i) Food delivery, plus (ii) Quick Commerce, plus (iii) Out-of-home Consumption, plus (iv) Supply Chain and Distribution, plus (v) Platform Innovations. Gross revenue of our segments refers to revenue from operations plus (i) user delivery charges collected and passed on to delivery partners (net of any discounts, including free delivery discounts provided through Swiggy One membership program), plus (ii) fee from user (that is not already included in revenue from operations) collected and netted off from platform funded discounts given for corresponding orders. User delivery charges represent the charges collected from the user and passed on to the delivery partner after recovering fees for platform Services along with "delivery and related charges" for corresponding orders, included within total expenses appearing on our statement of profit and loss. Fee from User collected and netted off from discounts provided to users which is part of "Advertisement and sales promotion" expenses appearing in our statement of profit and loss. The table below reconciles gross revenue to our revenue from operations:
(t in million)
| For the three months ended June 30, | Fiscals | ||||
| Particular* | 2024 | 2023 | 2024 | 2023 | 2022 |
| Revenue from operations | 32,222.17 | 23,898.18 | 112,473.90 | 82,645.96 | 57,048.97 |
| Add: user delivery charges | 2,253.87 | 3,001.80 | 10,240.76 | 12,150.93 | 11,555.47 |
| Add: fee from user (that is not already included in revenue from operations) | 296.83 | 38.50 | 488.48 | ||
| Swiggy Platform Consolidated Gross Revenue | 34,772.87 | 26,938.48 | 123,203.14 | 94,796.89 | 68,604.44 |
The table below reconciles gross revenue from our Food Delivery, Out-of-home Consumption, Quick Commerce, and Platform Innovations businesses to their respective revenue from operations:
(t in million)
| For the three months ended June 30, | Fiscals | ||||
| Particulars | 2024 | 2023 | 2024 | 2023 | 2022 |
| FOOD DELIVERY | |||||
| Revenue from operations | 15,153.40 | 11,926.12 | 51,601.25 | 41,299.90 | 33,913.14 |
| Add: user delivery charges | 1,854.58 | 2,580.70 | 8,725.78 | 10,492.15 | 10,384.93 |
| Add: fee from user (that is not already included in revenue from operations) | 288.32 | 38.50 | 488.48 | ||
| Food Delivery Gross Revenue | 17,296.30 | 14,545.32 | 60,815.51 | 51,792.05 | 44,298.07 |
| OUT-OF-HOME CONSUMPTION | |||||
| Revenue from operations | 458.52 | 311.25 | 1,571.86 | 776.86 | - |
| Add: fee from user (that is not already included in reported revenue from operations) | 8.51 | ||||
| Out-of-home Consumption Gross Revenue | 467.03 | 311.25 | 1,571.86 | 776.86 | - |
| QUICK COMMERCE | |||||
| Revenue from operations | 3,740.29 | 1,797.65 | 9,785.50 | 4,513.63 | 828.43 |
| Add: user delivery charges | 293.56 | 325.40 | 1,091.50 | 959.12 | 413.80 |
| Quick Commerce Gross Revenue | 4,033.85 | 2,123.05 | 10,877.00 | 5,472.75 | 1,242.23 |
| PLATFORM INNOVATIONS | |||||
| Revenue from operations | 187.39 | 387.35 | 1,719.24 | 3,192.10 | 7,654.40 |
| Add: user delivery charges | 105.73 | 95.70 | 423.48 | 699.66 | 756.74 |
| Platform Innovations Gross Revenue | 293.12 | 483.05 | 2,142.72 | 3,891.76 | 8,411.14 |
EBITDA and Adjusted EBITDA
EBITDA is calculated as profit/(loss) for the period/year as per restated Consolidated statement of profit and loss plus (i) tax expenses; plus (ii) finance costs; plus (iii) depreciation and amortisation expense. Adjusted EBITDA is calculated as loss for the period/year as per restated consolidated statement of profit and loss plus (i) tax expenses; plus (ii) finance costs; plus (iii) depreciation and amortisation expense; less (iv) other income; plus (v) share based payments; plus (vi) exceptional items; plus (vii) share in net loss of an associate and less (viii) rental expenses pertaining to ‘Ind AS 116 leases. The table below reconciles Adjusted EBITDA to profit/ (loss) for the period/year:
(t in million)
| For the three months ended June 30, | Fiscals | ||||
| 2024 | 2023 | 2024 | 2023 | 2022 | |
| Proflt/(loss) for the period / year | (6,110.07) | (5,640.84) | (23,502.43) | (41,793.05) | (36,288.96) |
| Add: Tax expense | - |
- |
- |
||
| Add: Finance costs | 198.26 | 174.00 | 714.03 | 581.92 | 483.76 |
| Add: Depreciation and amortisation expense | 1,216.72 | 912.98 | 4,205.85 | 2,857.86 | 1,700.90 |
| EBITDA | (4,695.09) | (4,553.86) | (18,582.55) | (38,353.27) | (34,104.30) |
| Less: Other income | (878.94) | (1,198.32) | (3,869.59) | (4,498.57) | (4,148.80) |
| Add: Share based payments | 2,593.14 | 1,397.46 | 5,962.62 | 5,339.52 | 5,134.15 |
| Add: Exceptional items(1) | 130.70 | 6.70 | 305.94 | 92.56 | 1,732.04 |
| Add: Share in net loss of an associate | 0.90 | 5.00 | 66.14 | 1.03 | 10.16 |
| Swiggy consolidated segment results(2) | (2,849.29) | (4,343.02) | (16,117.44) | (37,418.73) | (31,376.75) |
| Less: Rental expenses pertaining to ‘Ind AS 116 leases(3) | (628.71) | (525.94) | (2,238.23) | (1,684.64) | (960.87) |
| Swiggy Platform Consolidated Adjusted EBITDA | (3,478.00) | (4,868.96 ) | (18,355.67) | (39,103.37) | (32,337.62) |
1. See Note 29 of the Restated Consolidated Financial Information for more information.
2. Consolidated Segment results of all businesses i.e. (i) Food delivery (ii) Quick Commerce (iii) Out-of-Home Consumption (iv) Supply chain and distribution and (v) Platform Innovations as per Note 36 of the Restated Consolidated Financial Information.
3. Represents rental expenses on certain leases that are required to be capitalized as per Indian Accounting Standard 116 (Ind AS 116).
The table below reconciles Adjusted EBITDA for our Food Delivery, Quick Commerce, Supply Chain and Distribution, and Platform Innovations businesses to their respective segment results. As the line items for reconciliation for Out-of-home Consumption business are "-" or "nil", a separate reconciliation has not been provided.
(t in million)
| Particulars | For the three months ended June 30, | Fiscals | |||
| 2024 | 2023 | 2024 | 2023 | 2022 | |
| FOOD DELIVERY | |||||
| Segment results | 674.02 | (337.76) | (94.27) | (9,938.98) | (13,774.92) |
| Less: rental expenses pertaining to ‘Ind AS 116 leases(1) | (95.59) | (94.19) | (377.53) | (410.95) | (320.25) |
| Adjusted EBITDA | 578.43 | (431.95) | (471.80) | (10,349.93) | (14,095.17) |
| QUICK COMMERCE | |||||
| Segment results | (2,802.37) | (2,819.13) | (11,846.09) | (19,187.71) | (8,496.15) |
| Less: rental expenses pertaining to ‘Ind AS 116 leases(1) | (376.78) | (301.96) | (1,244.85) | (1,079.88) | (336.41) |
| Adjusted EBITDA | (3,179.15) | (3,121.09) | (13,090.94) | (20,267.59) | (8,832.56) |
| SUPPLY CHAIN AND DISTRIBUTION | |||||
| Segment results | (431.80) | (318.91) | (1,338.53) | (2,954.98) | (3,015.49) |
| Less: rental expenses pertaining to ‘Ind AS 116 leases(1) | (147.11) | (107.71) | (528.67) | - |
- |
| Adjusted EBITDA | (578.91) | (426.62) | (1,867.20) | (2,954.98) | (3,015.49) |
| PLATFORM INNOVATIONS | |||||
| Segment results | (157.57) | (377.09) | (1,102.59) | (3,965.00) | (6,024.97) |
| Less: rental expenses pertaining to ‘Ind AS 116 leases(1) | (9.23) | (22.08) | (87.18) | (193.81) | (304.21) |
| Adjusted EBITDA | (166.80) | (399.17) | (1,189.77) | (4,158.81) | (6,329.18) |
(1) Represents rental expenses on certain leases that are required to be capitalised as per Indian Accounting Standard 116 (Ind AS 116).
Net Worth and Return on Net Worth
Net worth is defined as the aggregate of equity share capital, instruments entirely equity in nature and other equity as of the end of the period/year. Return on Net Worth (%) is calculated as restated loss for the period/year divided by the net worth as of at the end of the respective period/year.
(^ in million unless otherwise provided)
| As of and for the three months ended June 30, | Fiscals/ As of March 31, | ||||
| Particular* | 2024 | 2023 | 2024 | 2023 | 2022 |
| Equity share capital | 38.09 | 26.57 | 30.06 | 26.57 | 8.56 |
| Instruments entirely equity in nature | 150,907.63 | 155,625.42 | 155,732.64 | 155,625.42 | 155,625.42 |
| Other equity | (76,495.80) | (69,046.02) | (77,848.09) | (65,085.87) | (32,964.86) |
| Net worth (A) | 74,449.92 | 86,605.97 | 77,914.61 | 90,566.12 | 122,669.12 |
| Loss for the period/year (B) | (6,110.07) | (5,640.84) | (23,502.43) | (41,793.05) | (36,288.96) |
| Return on net worth (%) (C=B/A) | (8.21)* | (6.51)* | (30.16) | (46.15) | (29.58) |
| *Not annualized | |||||
Net Asset Valueper Equity Share
Net Asset Value per Equity Share is computed as Net Worth as of the end of the period/ year divided by weighted average number of Equity shares, weighted average number of compulsorily convertible cumulative preference shares and vested ESOPs outstanding as of the end of the period/ year.
| Particulars | As of and for the three months ended June 30, | Fiscals/ As of March 31, | |||
| 2024 | 2023 | 2024 | 2023 | 2022 | |
| Net worth (t in millions) (A) | 74,449.92 | 86,605.97 | 77,914.61 | 90,566.12 | 122,669.12 |
| Weighted average number of equity shares | |||||
| outstanding during the year (B) | 2,214,835,804 | 2,186,657,090 | 2,196,294,367 | 2,162,376,117 | 1,948,449,584 |
| Net asset value per Equity Share (t) (C=A/B) | 33.61* | 39.61* | 35.48 | 41.88 | 62.96 |
| * Not annualized | |||||
Principal Components of Results of Operations
Results of Operations
The following table sets forth select financial data from our restated consolidated statement of profit and loss for the period/years indicated, the components of which are also expressed as a percentage of total income for such period/years.
(^ in million, except percentajes)
| For the three months ended June 30, | Fiscals | |||||||||
| 2024 | 2023 | 2024 | 2023 | 2022 | ||||||
| % of total income | % of total income | |||||||||
| Income | ||||||||||
| Revenue from operations | 32,222.17 | 97.34 | 23,898.18 | 95.23 | 112,473.90 | 96.67 | 82,645.96 | 94.84 | 57,048.97 | 93.22 |
| Other income | 878.94 | 2.66 | 1,198.32 | 4.77 | 3,869.59 | 3.33 | 4,498.57 | 5.16 | 4,148.80 | 6.78 |
| Total income | 33,101.11 | 100.00 | 25,096.50 | 100.00 | 116,343.49 | 100.00 | 87,144.53 | 100.00 | 61,197.77 | 100.00 |
| Expenses | ||||||||||
| Cost of materials consumed | 77.69 | 0.23 | 143.63 | 0.57 | 610.83 | 0.53 | 719.99 | 0.83 | 510.54 | 0.83 |
| Purchases of stock- in-trade | 11,951.48 | 36.11 | 8,970.16 | 35.74 | 45,547.50 | 39.15 | 33,019.51 | 37.89 | 22,245.40 | 36.35 |
| Changes in inventories of stock-in-trade | (75.50) | (0.23) | (13.30) | (0.05) | (116.34) | (0.10) | 69.23 | 0.08 | (75.46) | (0.121 |
| Employee benefits expense | 5,891.85 | 17.80 | 4,857.80 | 19.36 | 20,121.64 | 17.30 | 21,298.20 | 24.44 | 17,084.90 | 27.92 |
| Finance costs | 198.26 | 0.60 | 174.00 | 0.69 | 714.03 | 0.61 | 581.92 | 0.67 | 483.76 | 0.79 |
| Depreciation and amortisation expense | 1,216.72 | 3.68 | 912.98 | 3.64 | 4,205.85 | 3.62 | 2,857.86 | 3.28 | 1,700.90 | 2.78 |
| Other expenses | ||||||||||
| Advertising and sales promotion | 4,453.73 | 13.45 | 4,871.35 | 19.41 | 18,507.99 | 15.91 | 25,011.60 | 28.70 | 20,050.73 | 32.76 |
| Delivery and related charges | 10,460.45 | 31.60 | 7,490.01 | 29.84 | 33,510.59 | 28.80 | 28,349.44 | 32.53 | 20,688.13 | 33.81 |
| Others | 4,904.90 | 14.82 | 3,319.01 | 13.22 | 16,371.75 | 14.07 | 16,936.24 | 19.43 | 13,055.63 | 21.33 |
| Total expenses | 39,079.58 | 118.06 | 30,725.64 | 122.43 | 139,473.84 | 119.88 | 128,843.99 | 147.85 | 95,744.53 | 156.45 |
| For the three months ended June 30, | Fiscals | |||||||||
| 2024 | 2023 | 2024 | 2023 | 2022 | ||||||
| Particulars | % of total income | % of total income | % of total income | % of total income | % of total income | |||||
| Loss before share of loss on an associate, exceptional items and tax | (5,978.47) | (18.06) | (5,629.14) | (22.43) | (23,130.35) | (19.88) | (41,699.46) | (47.85) | (34,546.76) | (56.45) |
| Share in net loss of an associate | (0.90) | 0.00 | (5.00) | (0.02) | (66.14) | (0.06) | (1.03) | (0.00) | (10.16) | (0.02) |
| Loss before exceptional items and tax | (5,979.37) | (18.06) | (5,634.14) | (22.45) | (23,196.49) | (19.94) | (41,700.49) | (47.85) | (34,556.92) | (56.47) |
| Exceptional items | (130.70) | (0.39) | (6.70) | (0.03) | (305.94) | (0.26) | (92.56) | (0.11) | (1,732.04) | (2.83) |
| Loss before tax | (6,110.07) | (18.46) | (5,640.84) | (22.48) | (23,502.43) | (20.20) | (41,793.05) | (47.96) | (36,288.96) | (59.30) |
| Tax expense: | - | - | - | - | - | - | - | - | - | - |
| Current tax | - |
- |
- |
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- |
- |
- |
- |
- |
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| Deferred tax | - | - | - | - | - | - | - | - | - | - |
| Total tax expense | - |
- |
- |
- |
- |
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- |
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| Loss for the period/ year | (6,110.07) | (18.46) | (5,640.84) | (22.48) | (23,502.43) | (20.20) | (41,793.05) | (47.96) | (36,288.96) | (59.30) |
| Total comprehensive loss for the period/year, net of tax | (6,057.83) | (18.30) | (5,628.27) | (22.43) | (22,559.50) | (19.39 | (41,921.73) | (48.11) | (36,312.28) | (59.34) |
| Loss per equity share - Basic and Diluted (in Rs.) (face value of Rs. 1 each) | (2.76) | (0.01) | (2.58) | (001) | (10.70) | (001) | (19.33) | (0.02) | (18.62) | (0.03) |
The table below provides a breakdown of our revenue from operations by segment for the periods indicated:
(t in million)
| Particulars | For the three months ended June 30, | Fiscals | |||
| 2024 | 2023 | 2024 | 2023 | 2022 | |
| Food Delivery | 15,153.40 | 11,926.12 | 51,601.25 | 41,299.90 | 33,913.14 |
| Out-of-home Consumption | 458.52 | 311.25 | 1,571.86 | 776.86 | - |
| Quick Commerce | 3,740.29 | 1,797.65 | 9,785.50 | 4,513.63 | 828.43 |
| Supply Chain and Distribution | 12,682.57 | 9,475.81 | 47,796.05 | 32,863.47 | 14,653.00 |
| Platform Innovations | 187.39 | 387.35 | 1,719.24 | 3,192.10 | 7,654.40 |
| Total | 32,222.17 | 23,898.18 | 112,473.90 | 82,645.96 | 57,048.97 |
The table below provides a breakdown of our segment results for the periods indicated:
(t in million)
| Particulars | For the three months ended June 30, | Fiscals | |||
| 2024 | 2023 | 2024 | 2023 | 2022 | |
| Food Delivery | 674.02 | (337.76) | (94.27) | (9,938.98) | (13,774.92) |
| Out-of-home Consumption | (131.57) | (490.13) | (1,735.96) | (1,372.06) | (65.22) |
| Quick Commerce | (2,802.37) | (2,819.13) | (11,846.09) | (19,187.71) | (8,496.15) |
| Supply Chain and Distribution | (431.80) | (318.91) | (1,338.53) | (2,954.98) | (3,015.49) |
| Platform Innovations | (157.57) | (377.09) | (1,102.59) | (3,965.00) | (6,024.97) |
| Total | (2,849.29) | (4,343.02) | (16,117.44) | (37,418.73) | (31,376.75) |
Three Months Ended June 30, 2024 compared to the Three Months Ended June 30, 2023 Income
Our total income increased by 31.90% to ^33,101.11 million in the three months ended June 30, 2024 from Rs.25,096.50 million in the three months ended June 30, 2023, primarily due to an increase in our revenue from operations by 34.83% to Rs.32,222.17 million in the three months ended June 30, 2024 from Rs.23,898.18 million in the three months ended June 30, 2023. The increase in our revenue from operations was primarily due to an increase in the Food Delivery business and Supply chain and distribution. This increase was partially offset by a decrease in our revenue from our Platform Innovations business.
• Food Delivery: Our revenue from operations from our Food Delivery business increased by 27.06% from ^11,926.12 million in the three months ended June 30, 2023 to Rs.15,153.40 million in the three months ended June 30, 2024 primarily due to an increase in commissions earned from restaurant partners, advertisement income from restaurant partners and brand partners, and fees from users and delivery partners. This increase was primarily due to an increase in the Gross Order Value from Rs.59,587.43 million in the three months ended June 30, 2023 to Rs.68,083.44 million in the three months ended June 30, 2024; Average Order Value from Rs.423 in the three months ended June 30, 2 023 to Rs.436 in the three months ended June 30, 2024; Average Monthly Transacting Users from 12.56 million in the three months ended June 30, 2023 compared to 14.03 million in the three months ended June 30, 2024; and Average Monthly Transacting Restaurant Partners from 183,138 in the three months ended June 30, 2023 to 223,671 in the three months ended June 30, 2024.
• Out-of-home Consumption: our revenue from operations from our Out-of-home Consumption business increased by 47.32% from Rs.311.25 million in the three months ended June 30, 2023 to Rs.458.52 million in the three months ended June 30, 2024, primarily due to an increase in our Gross Order Value from Rs.5,769.28 million in the three months ended June 30, 2023 to Rs.6,571.95 million in the three months ended June 30, 2024, and an increase in our Average Order Value from Rs.3,099 in the three months ended June 30, 2023 to Rs.3,236 in the three months ended June 30, 2024.
• Quick Commerce: Our revenue from operations from our Quick Commerce business increased by 108.07% from Rs.1,797.65 million in the three months ended June 30, 2023 to Rs.3,740.29 million in the three months ended June 30, 2024 primarily due to an increase in commissions earned from our merchant partners, advertising revenue we earned from our brand partners, and fees earned from users and delivery partners. This increase was primarily due to an increase in the Gross Order Value from Rs.17,415.15 million in the three months ended June 30, 2023 to Rs.27,240.47 million in the three months ended June 30, 2024; Average Order Value from Rs.441 in the three months ended June 30, 2023 to Rs.487 in the three months ended June 30, 2024; and Average Monthly Transacting Users from 3.89 million in the three months ended June 30, 2023 compared to 5.24 million in the three months ended June 30, 2024, as we expanded our Quick Commerce business and our active Dark Stores increased from 421 as at period ended June 30, 2023 to 557 as at period ended June 30, 2024.
• Supply Chain and Distribution: Our revenue from operations from our Supply Chain and Distribution business increased by 33.84% from Rs.9,475.81 million in the three months ended June 30, 2023 to Rs.12,682.57 million in the three months ended June 30, 2024 primarily due to an increase in sale of traded goods and services as we expanded our supply chain business/ services and opened new warehouses to cater to increased volumes.
• Platform Innovations: Our revenue from operations from our Platform Innovations business decreased by 51.62% from Rs.387.35 million in the three months ended June 30, 2023 to Rs.187.39 million in the three months ended June 30, 2024, as we reduced footprints of our Private Brands business and integrated Swiggy Mall with Quick Commerce.
Our other income decreased by 26.65% from Rs.1,198.32 million in the three months ended June 30, 2023 to Rs.878.94 million in the three months ended June 30, 2024 primarily due to a decrease in interest income from bank and other deposits and income on investments carried at fair value through profit and loss.
Expenses
Our total expenses increased by 27.19% to Rs.39,079.58 million for the three months ended June 30, 2024 from Rs.30,725.64 million for the three months ended June 30, 2023, primarily due to an increase in our purchases of stock-in-trade, employee benefits expenses, delivery and related charges and other expenses. This increase was partially offset by a decrease in advertising and sales promotion expenses and cost of materials consumed. As a percentage of total income, our total expenses decreased from 122.43% in the three months ended June 30, 2023 to 118.06% in the three months ended June 30, 2024.
Cost of materials consumed
Our cost of materials consumed decreased by 45.91% to Rs.77.69 million for the three months ended June 30, 2024 from Rs.143.63 million for the three months ended June 30, 2023, in line with the decrease in revenue of our Private Brands business in the three months ended June 30, 2024.
Purchases of stock-in-trade
Our purchases of stock-in-trade increased by 33.24% to ^11,951.48 million in the three months ended June 30, 2024 from Rs.8,970.16 million in the three months ended June 30, 2023 in line with the increase in revenue from operations from our Supply Chain and Distribution business as opened new warehouses to cater to increased volumes.
Changes in inventories of stock-in-trade
Changes in inventories of stock-in-trade was Rs.75.50 million in the three months ended June 30, 2024 compared to Rs.13.30 million in the three months ended June 30, 2023. We had inventories aggregating to Rs.425.83 milli on at the beginning of the three months ended June 30, 2024, and inventories aggregating to Rs.501.33 million at the end of the three months ended June 30, 2024 including inventory acquired as part of Lynks acquisition amounting to Rs.254.30 million. We had inventories aggregating to Rs.55.02 million at the beginning of the three months ended June 30, 2023, and inventories aggregating to Rs.68.47 million at the end of the three months ended June 30, 2023.
Employee benefits expense
Our employee benefits expense increased by 21.29% to Rs.5,891.85 million in the three months ended June 30, 2024 from Rs.4,857.80 million in the three months ended June 30, 2023 primarily due to an increase in share based payments from Rs.1,397.46 million in the three months ended June 30, 2023 to Rs.2,593.14 million in the three months ended June 30, 2024 due to issuance of new grants. The increase has been partially offset by a decrease in salaries, wages and bonus to Rs.3,136.03 million in the three months ended June 30, 2024 from Rs.3,300.21 million in the three months ended June 30, 2023 on account of reduction in employee headcount from 5,868 as of June 30, 2023 to 5,401 as of June 30, 2024.
Finance costs
Our finance costs increased by 13.94% to Rs.198.26 million in the three months ended June 30, 2024 from Rs.174.00 million in the three months ended June 30, 2023, primarily because we incurred interest expense on financial liabilities measured at amortised cost - borrowings of Rs.40.80 million during the three months ended June 30, 2024 as we incurred n ew loans during the period. We did not incur similar expenses in the three months ended June 30, 2023.
Depreciation and amortisation expense
Our depreciation and amortisation expense increased by 33.27% to Rs.1,216.72 million in the three months ended June 30, 2024 from Rs.912.98 million in the three months ended June 30, 2023, primarily due to an increase in the depreciation of property, plant and equipment, right-of-use assets and other intangible assets during the period, as we acquired new assets for our operations during the period.
Other expenses
Our other expenses increased by 26.39% to Rs.19,819.08 million in the three months ended June 30, 2024 from Rs.15,680.37 million in the three months ended June 30, 2023, primarily due to an increase in the following expenses:
• Delivery andrelatedcharges: our delivery and related charges increased by 39.66% to Rs.10,460.45 million in the three months ended June 30, 2024 from Rs.7,490.01 million in the three months ended June 30, 2023, primarily due to an increase in the number of monthly transacting delivery partners from 350,280 in the three months ended June 30, 2023 to 457,249 in the three months ended June 30, 2024 on our platform. This expense also increased with an increase in delivery-based promotions offered on our platform, and platform orders in the three months ended June 30, 2024 compared to the three months ended June 30, 2023, causing an increase in other related charges such as for insurance and apparel.
• Outsourcing support: our outsourcing support costs increased by 160.00% to Rs.1,317.62 million in the three months ended June 30, 2024 from Rs.506.77 million in the three months ended June 30, 2023, as we expanded our platform services to include Dark Store fulfilment services for our merchant partners in August 2023.
• Supply chain management services cost: our supply chain management services cost increased by 34.64% to Rs.1,001.41 million in the three months ended June 30, 2024 from Rs.743.79 million in the three months ended June 30, 2023, primarily due to an increase in the number of warehouses and introduction of logistic services offered as a part of supply chain management services during the three months ended June 30, 2024.
• Technology and cloud infrastructure cost: our technology and cloud infrastructure cost increased by 4.49% to Rs.829.74 million in the three months ended June 30, 2024 from Rs.794.09 million in the three months ended June 30, 2023.
This increase was partially offset by a decrease in our advertising and sales promotion expenses by 8.57% to Rs.4,453.73 million in the three months ended June 30, 2024 from Rs.4,871.35 million in the three months ended June 30, 2023. Advertisement and sales promotion as a percentage of B2C Gross Order Value reduced to 4.37% in the three months ended June 30, 2024 from 5.89% in the three months ended June 30, 2024.
Restated Profit/Loss for the Period
As a result of the foregoing factors, our loss for the three months ended June 30, 2024 increased by 8.32% to Rs.6,110.07 million from a loss of Rs.5,640.84 million for the three months ended June 30, 2023;
Our segment results from Food Delivery improved from a loss of Rs.337.76 million in the three months ended June 30, 2023 to a profit of Rs.674.02 million in the three months ended June 30, 2024; our segment results from Out-of-home Consumption improved from a loss of Rs.490.13 million in the three months ended June 30, 2023 to a loss of ^131.57 million in the three months ended June 30, 2024; our segment results from Quick Commerce improved from a loss of Rs.2,819.13 million in the three months ended June 30, 2023 to a loss of Rs.2,802.37 million in the three months ended June 30, 2024; our segment results from Supply Chain and Distribution improved from a loss of ^318.91 million in the three months ended June 30, 2023 to a loss of Rs.431.80 million; and our segment results from Platform Innovations improved from a loss of Rs.377.09 million in the three months ended June 30, 2023 to a loss of Rs.157.57 million in the three months ended June 30, 2024.
Fiscal 2024 compared to Fiscal 2023
Income
Our total income increased by 33.51% to Rs.116,343.49 million in Fiscal 2024 from Rs.87,144.53 million in Fiscal 2023, primarily due to an increase in our revenue from operations by 36.09% to Rs.112,473.90 million in Fiscal 2024 from Rs.82,645.96 million in Fiscal 2023. The increase in our revenue from operations was primarily due to an increase in our revenue from our Food Delivery, Supply Chain and Distribution, Quick Commerce and Out-of-home Consumption businesses. This increase was partially offset by a decrease in our revenue from our Platform Innovations business.
• Food Delivery. Our revenue from operations from our Food Delivery business increased by 24.94% from Rs.41,299.90 million in Fiscal 2023 to ^51,601.25 million in Fiscal 2024 primarily due to an increase in commissions earned from restaurant partners, advertisement income from restaurant partners and brand partners, and fee from users and delivery partners. This increase was primarily due to an increase in the Gross Order Value from Rs.215,170.76 million in Fiscal
2023 to Rs.247,174.41 million in Fiscal 2024, Average Order Value from Rs.416 in Fiscal 2023 to Rs.428 in Fiscal 2024; Average Monthly Transacting Users from 11.57 million Fiscal 2023 compared to 12.73 million in Fiscal 2024; and Average Monthly Transacting Restaurant Partners from 174,598 in Fiscal 2023 to 196,499 in Fiscal 2024.
• Out-of-home Consumption: Our revenue from operations from our Out-of-home Consumption business increased by 102.34% from Rs.776.86 million in Fiscal 2023 to Rs.1,571.86 million in Fiscal 2024. We started our Out-of-home Consumption business from July 2022 with the acquisition of Dineout from Times Internet Limited. As a result, in Fiscal 2023, we recognised revenue for only nine months from our Out-of-home Consumption business and Fiscal
2024 was its first full year of operations under our Company. Our Gross Order Value increased from Rs.11,050.75 million in Fiscal 2023 to Rs.21,830.67 million in Fiscal year 2024.
• Quick Commerce: Our revenue from operations from our Quick Commerce business increased by 116.80% from Rs.4,513.63 million in Fiscal 2023 to Rs.9,785.50 million in Fiscal 2024 primarily due to an increase in commissions earned from our merchant partners, advertising revenue we earned from our brand partners, and fees earned from users and delivery partners. This increase was primarily due to an increase in the Gross Order Value from Rs.51,183.67 million in Fiscal 2023 to Rs.80,685.67 million in Fiscal 2024; Average Order Value from Rs.398 in Fiscal 2023 to Rs.460 in Fiscal 2024, and Average Monthly Transacting Users from 3.20 million in Fiscal 2023 to 4.24 million in Fiscal 2024, as we expanded our Quick Commerce business in new cities in India and our Active Dark Stores increased from 421 as of March 31, 2023 to 523 as of March 31, 2024.
• Supply Chain and Distribution: Our revenue from operations from our Supply Chain and Distribution business increased by 45.44% from Rs.32,863.47 million in Fiscal 2023 to Rs.47,796.05 million in Fiscal 2024 primarily due to an increase in sale of traded goods and services as we expanded our supply chain business across new cities in India, opened new warehouses to cater to increased volumes, and as our brand partner and related customer base using this service increased.
• Platform Innovations: Our revenue from operations from our Platform Innovations business decreased by 46.14% from Rs.3,192.10 million in Fiscal 2023 to Rs.1,719.24 million in Fiscal 2024, as we reduced footprints of our Private Brands business.
Our other income decreased by 13.98% to Rs.3,869.59 million in Fiscal 2024 from Rs.4,498.57 million in Fiscal 2023 primarily due to profits on sale of investment of a business undertaking (Loyal Hospitality Private Limited) which was undertaken in Fiscal 2023.
Expenses
Our total expenses increased by 8.25% to Rs.1,39,473.84 million for Fiscal 2024 from Rs.128,843.99 million for Fiscal 2023, primarily due to an increase in our purchases of stock-in-trade and delivery and related charges.
Cost of materials consumed
Our cost of materials consumed decreased by 15.16% to Rs.610.83 million for Fiscal 2024 from Rs.719.99 million for Fiscal 2023, primarily due to a decrease in purchases of raw material in line with the decrease in revenue of our Private Brands business in Fiscal 2024.
Purchases of stock-in-trade
Our purchases of stock-in-trade increased by 37.94% to Rs.45,547.50 million in Fiscal 2024 from Rs.33,019.51 million in Fiscal 2023, in line with the increase in revenue from operations from our Supply Chain and Distribution business as we opened new warehouses to cater to increased volumes.
Changes in inventories of stock-in-trade
Changes in inventories of stock-in-trade was Rs.(116.34) million in Fiscal 2024. We had inventories aggregating to Rs.55.02 million at the beginning of Fiscal 2024, and inventories aggregating to Rs.425.83 million at the end of Fiscal 2024 including inventory acquired as part of Lynks acquisition amounting to Rs.254.30 million.
Employee benefits expense
Our employee benefits expense decreased by 5.52% to Rs.20,121.64 million in Fiscal 2024 from Rs.21,298.20 million in Fiscal 2023 primarily due to decrease in salaries, wage and bonus by 11.76% to Rs.13,513.57 million for Fiscal 2024 from Rs.15,314.22 million for Fiscal 2023. This decrease was primarily because of a decrease in our headcount from 5,718 as of March 31, 2023 to 5,406 as of March 31, 2024. Such decrease is partially offset by increase in share based payments by 11.67% to Rs.5,962.62 million for Fiscal 2024 from Rs.5,339.52 million for Fiscal 2023.
Finance costs
Our finance costs increased by 22.70% to Rs.714.03 million in Fiscal 2024 from Rs.581.92 million in Fiscal 2023, primarily becaus e we incurred interest expense on financial liabilities measured at amortised cost - interest on borrowings amounting of Rs.76.67 million in Fiscal 2024 as we availed loans during the year. Our finance cost also increased with an increase in interest expense on financial liabilities measured at amortised cost - interest on lease liabilities by 7.09% to Rs.601.74 million for Fiscal 2024 from Rs.561.88 million for Fiscal 2023 on account of increase in interest on lease liabilities.
Depreciation and amortisation expense
Our depreciation and amortisation expense increased by 47.17% to Rs.4,205.85 million in Fiscal 2024 from Rs.2,857.86 million in Fiscal 2023, primarily due to an increase in the depreciation of property, plant and equipment, right-of-use assets and other intangible assets during the year, as we acquired new assets for our operations during the year.
Other expenses
Our other expenses decreased by 2.71% to Rs.68,390.33 million in Fiscal 2024 compared to Rs.70,297.28 million in Fiscal 2023, primarily due to a decrease in the following expenses. The decrease in these expenses was due to efficiencies in our operations as further described in " - Cost-effectiveness of our platform" on page 358.
• Advertising and salespromotion: our advertising and sales promotion expenses decreased by 26.00% to Rs.18,507.99 million in Fiscal 2024 from Rs.25,011.60 million in Fiscal 2023.
• Technology and cloud infrastructure cost: our technology and cloud infrastructure cost decreased by 28.50% to Rs.2,956.96 million in Fiscal 2024 from Rs.4,135.70 million in Fiscal 2023. Technology and cloud infrastructure cost as a percentage of Total Income reduced to 2.54% in Fiscal 2024 from 4.75% in Fiscal 2023.
• Supply chain managementservices cost: our supply chain management services cost decreased by 37.39% to Rs.2,551.09 million in Fiscal 2024 from Rs.4,074.49 million in Fiscal 2023 due to increase in scale, operational efficiencies and maturity of the business.
This decrease was partially offset by an increase in primarily our delivery and related charges by 18.21% to Rs.33,510.59 million in Fiscal 2024 from Rs.28,349.44 million in Fiscal 2023, primarily due to an increase in the number of orders delivered through
our platform in Fiscal 2024 compared to Fiscal 2023. This expense also increased with an increase in delivery-based promotions offered on our platform, increase in the number of delivery partners and platform orders in Fiscal 2024 compared to Fiscal 2023, causing an increase in onboarding expenses such as for insurance and apparel.
Restated Profit/Loss for the Year
As a result of the foregoing factors, our loss for Fiscal 2024 decreased by 43.76% to Rs.23,502.43 million from a loss of ^41,793.05 million for Fiscal 2023.
Our segment results from Food Delivery improved from a loss of Rs.9,938.98 million in Fiscal 2023 to a loss of Rs.94.27 million in Fiscal 2024; our segment results from Quick Commerce improved from a loss of Rs.19,187.71 million in Fiscal 2023 to a loss of Rs.11,846.09 million in Fiscal 2024; our segment results from Supply Chain and Distribution business improved from a loss of Rs.2,954.98 million in Fiscal 2023 to a loss of Rs.1,338.53 million in Fiscal 2024; and our segment results from Platform Innovations improved from a loss of Rs.3,965.00 million in Fiscal 2023 to a loss of Rs.1,102.59 million in Fiscal 2024. However, loss from our Out-of-home Consumption segment increased from Rs.1,372.06 million in Fiscal 2023 to Rs.1,735.96 million in Fiscal 2024.
Fiscal 2023 compared to Fiscal 2022 Income
Our total income increased by 42.40% to Rs.87,144.53 million in Fiscal 2023 from ^61,197.77 million in Fiscal 2022, primarily due to an increase in our revenue from operations by 44.87% to Rs.82,645.96 million in Fiscal 2023 from Rs.57,048.97 million in Fiscal 2022. The increase in our revenue from operations was primarily due to an increase in our revenue from operations from our Food Delivery, Supply Chain and Distribution and Quick Commerce businesses. We also earned revenue from operations from our Out-of-home Consumption business for the first time in Fiscal 2023. This increase was partially offset by a decrease in our revenue from operations from our Platform Innovations business.
• Food Delivery. Our revenue from operations from our Food Delivery business increased by 21.78% from Rs.33,913.14 million in Fiscal 2022 to Rs.41,299.90 million in Fiscal 2023 primarily due to an increase in commissions earned from restaurant partners, advertisement income from restaurant partners and brand partners, and fees from users and delivery partners. This increase was primarily due to an increase in the Gross Order Value from Rs.184,788.26 million in Fiscal 2022 to Rs.215,170.76 million in Fiscal 2023, Average Order Value from Rs.407 in Fiscal 2022 to ?416 in Fiscal 2023; Average Monthly Transacting Users from 9.86 million in Fiscal 2022 compared to 11.57 million in Fiscal 2023; and Average Monthly Transacting Restaurant Partners from 129,036 in Fiscal 2022 to 174,598 in Fiscal 2023.
• Out-of-home Consumption: We earned revenue from operations of ?776.86 million from our Out-of-home Consumption business for the first time in Fiscal 2023 with the acquisition of Dineout from Times Internet Limited in Fiscal 2023. Our Gross Order Value and Average Order Value for Fiscal 2023 was ?11,050.75 million and ?3,344, respectively.
• Quick Commerce: Our revenue from operations from our Quick Commerce business increased by 444.84% from ?828.43 million in Fiscal 2022 to ?4,513.63 million in Fiscal 2023 primarily due to an increase in commissions earned from our merchant partners and advertising revenue we earned from our brand partners, and fees earned from users and delivery partners. This increase was primarily due to an increase in the Gross Order Value from ?16,434.33 mill ion in Fiscal 2022 to ?51,183.67 million in Fiscal 2023; Average Order Value from ?394 in Fiscal 2022 to ?398 in Fiscal 2023, and Average Monthly Transacting Users from 1.10 million in Fiscal 2022 to 3.20 million in Fiscal 2023, as we expanded our Quick Commerce business in new cities in India and our Active Dark Stores increased from 301 as of March 31, 2022 to 421 as of March 31, 2023.
• Supply Chain and Distribution: Our revenue from operations from our Supply Chain and Distribution business increased by 124.28% from ?14,653.00 million in Fiscal 2022 to ?32,863.47 million in Fiscal 2023 primarily due to an increase in sale of traded goods and services as we expanded our supply chain business across new cities in India, opened new warehouses to cater to increased volumes, and as our brand partner and related customer base using this service increased.
• Platform Innovations: Our revenue from operations from our Platform Innovations business decreased by 58.30% from ?7,654.40 million in Fiscal 2022 to ?3,192.10 million in Fiscal 2023, as we closed one of our Platform Innovations businesses in Fiscal 2023.
Our other income increased by 8.43% to ?4,498.57 million in Fiscal 2023 from ?4,148.80 million in Fiscal 2022 primarily due to an increase in interest income from bank and other deposits and profits on sale of investment of a business undertaking (Loyal Hospitality Private Limited).
Expenses
Our total expenses increased by 34.57% to ?128,843.99 million for Fiscal 2023 from ?95,744.53 million for Fiscal 2022, primarily due to an increase in our purchases of stock-in-trade, employee benefits expense, advertising and sales promotions expenses and delivery and related charges.
Cost of materials consumed
Our cost of materials consumed increased by 41.03% to ?719.99 million for Fiscal 2023 from ?510.54 million for Fiscal 2022, primarily due to an increase in purchases of raw material in line with the increase in revenue of our Private Brands business in Fiscal 2023.
Purchases of stock-in-trade
Our purchases of stock-in-trade increased by 48.43% to ?33,019.51 million in Fiscal 2023 from ?22,245.40 million in Fiscal 2022 in line with the increase in revenue from operations from our Supply Chain and Distribution business as we expanded operations in new cities in India.
Changes in inventories of stock-in-trade
Changes in inventories of stock-in-trade was ?69.23 million in Fiscal 2023. We had inventories aggregating to ?123.95 million (after adjustment of ?61.15 million on account of write down of stock in trade) at the beginning of Fiscal 2023, and inventories aggregating to ?55.02 million at the end of Fiscal 2023.
Employee benefits expense
Our employee benefits expense increased by 24.66% to ?21,298.20 million in Fiscal 2023 from ?17,084.90 million in Fiscal 2022 primarily due to an increase in salaries, wage and bonus by 33.70% to ?15,314.22 million for Fiscal 2023 from ?11,453.74 million for Fiscal 2022 primarily due to an increase in our headcount for the Quick Commerce business. Further, our expenses also increased with the acquisition of Dineout business in Fiscal 2023.
Finance costs
Our finance costs increased by 20.29% to ?581.92 million in Fiscal 2023 from ?483.76 million in Fiscal 2022, primarily due to an increase in interest expense on financial liabilities measured at amortised cost - interest on lease liabilities by 26.56% to ?561.88 million for Fiscal 2023 from ?443.96 million for Fiscal 2022 on account of increase in interest on lease liabilities.
Depreciation and amortisation expense
Our depreciation and amortisation expense increased by 68.02% to ?2,857.86 million in Fiscal 2023 from ?1,700.90 million in Fiscal 2022, primarily due to an increase in the depreciation of property, plant and equipment, right-of-use assets and other intangible assets during the year, as we acquired new assets for our operations during the year.
Other expenses
Our other expenses increased by 30.68% to ?70,297.28 million in Fiscal 2023 compared to ?53,794.49 million in Fiscal 2022, primarily due to an increase in the following expenses:
• Advertising and sales promotion: our advertising and sales promotion expenses increased by 24.74% to ?25,011.60 million in Fiscal 2023 from ?20,050.73 million in Fiscal 2022, primarily due to an increase in B2C Gross Order Value by 37.86% to ?277,405.18 million in Fiscal 2023 from ?201,222.59 million in Fiscal 2022. Advertisement and sales promotion as a percentage of B2C Gross Order Value reduced to 9.02% in Fiscal 2023 from 9.96% in Fiscal 2022.
• Delivery and related charges: our delivery and related charges increased by 37.03% to ?28,349.44 million in Fiscal 2023 from ?20,688.13 million in Fiscal 2022, primarily due to an increase in the number of orders delivered through our platform in Fiscal 2023 compared to Fiscal 2022. This expense also increased with an increase in delivery based promotions offered on our platform, increase in the number of delivery partners and platform orders in Fiscal 2023 compared to Fiscal 2022, causing an increase in onboarding expenses such as for insurance and apparel.
• Supply chain management services cost: our supply chain management services cost increased by 192.06% to ?4,074.49 million in Fiscal 2023 from ?1,395.10 million in Fiscal 2022, primarily due to an increase in the number of warehouses opened to support the growth of Supply Chain and Distribution businesses in Fiscal 2023.
Restated Loss for the Year
As a result of the foregoing factors, our loss for Fiscal 2023 increased by 15.17% to ?41,793.05 million from a loss of ?36,288.96 million for Fiscal 2022.
Our segment results from Food Delivery improved from a loss of ?13,774.92 million in Fiscal 2022 to ?9,938.98 million in Fiscal 2023; our segment results from Supply Chain and Distribution improved from a loss of ?3,015.49 million in Fiscal 2022 to ?2,954.98 million in Fiscal 2023; and our segment results from Platform Innovations improved from a loss of ?6,024.97 million in Fiscal 2022 to ?3,965.00 million in Fiscal 2023. However, loss from our Quick Commerce segment increased from a loss of ?8,496.15 million in Fiscal 2022 to ?19,187.71 million in Fiscal 2023; and loss from our Out-of-home Consumption segment increased from ?65.22 million in Fiscal 2022 to ?1,372.06 million in Fiscal 2023.
Select Balance Sheet Items
Goodwill
Our goodwill increased from ?109.15 million as of March 31, 2022 to ?6,964.67 million as of June 30, 2024, primarily because the Company reported a goodwill of ?3,148.59 million as a result of acquisition of Dineout during Fiscal 2023 and ?3,816.08 million as a result of acquisition of Lynks Logistics during Fiscal 2024.
Other intangible assets
Our other intangible assets increased from ?162.73 million as of March 31, 2022 to ?2,912.61 million as of June 30, 2024 primarily due to recognition of other intangible assets such as trademark, technology, customer contracts amounting to ?3,325.16 million as a result of acquisition of Dineout during Fiscal 2023; and ?468.00 million as a result of acquisition of Lynks Logistics in Fiscal 2024. Further, it increased due to purchase of computer software by ?110.07 million and was partially offset by regular amortization of Other intangible assets of ?400.58 million in Fiscal 2023, ?553.18 million in Fiscal 2024 a nd ?145.39 million in the three months ended June 30, 2024.
Liquidity and Capital Resources
Historically, our primary liquidity requirements have been to finance our working capital needs for our operations. We have met these requirements through cash flows from operations, equity infusions from shareholders and borrowings. As of June 30, 2024, we had ?8,364.92 million in cash and cash equivalents, ?30.06 million as bank balances other than cash and cash equivalents, ?25,090.32 million of investments in mutual fund units, ?2,011.03 million of current investments in Non- Convertible Debentures (NCDs)/bonds, ?2,081.81 million in current investments in Certificates of deposits. As of June 30, 2024, we had ?1,020.03 million in current borrowings which primarily include current maturities of long term borrowings an d working capital facilities from banks.
To execute on our strategic initiatives to continue to expand our offerings and our businesses, we may incur operating losses and generate negative cash flows from operations in the future, and as a result, we may require additional capital resources. We believe our existing cash, cash equivalents, and proceeds from the Offer, along with the available current borrowings, will be sufficient to meet our working capital and capital expenditures needs for at least the next 12 months and beyond. See "Risk Factors - Infernal Risks - We have incurred net losses in each year since incorporation and have negative cash flows from operations. If we are unable to general adequate revenue growth and manage our expenses and cash flows, we may continue to incur significant losses." on page 33.
Our future capital requirements will depend on many factors, including, but not limited to our growth, our ability to attract and retain users, restaurant partners, merchant partners, brand partners and delivery partners that use our platform, the continuing market acceptance of our offerings, the timing and extent of spending to support our efforts to develop our platform, and the expansion of sales and marketing activities. Further, we may in the future enter into arrangements to strategically pursue inorganic growth opportunities to support our operations. We may finance our capital requirements through equity, debt, or a combination thereof. See "Risk Factors - Internal Risks - We may require additional capital to support the growth of our business and this capital might not be available on acceptable terms, if at all. " on page 59.
Cash Flows
The table below summarises the statement of cash flows, as per our restated consolidated statement of cash flows for the periods indicated:
| Particulars | For the three months ended June 30, | Fiscal | |||
| 2024 | 2023 | 2024 | 2023 | 2022 | |
| Net cash used in operating activities | (5,166.27) | (1,737.82) | (13,127.35) | (40,599.09) | (39,003.87) |
| Net cash flow from/ (used in) investing activities | 4,959.00 | 6,141.14 | 14,584.58 | 39,678.47 | (91,601.40) |
| Net cash flow from/ (used in) financing activities | (118.90) | (525.94) | (1,227.95) | (1,715.48) | 136,341.48 |
| Cash and cash equivalents at the end of the year/ period | 8,364.92 | 12,202.59 | 8,691.09 | 8,325.21 | 10,961.31 |
Operating A ctivities
Our net cash used in operating activities for the three months ended June 30, 2024 was ?5,166.27 million, while our operating cash used before working capital adjustments was ?2,748.78 million. This increase was primarily due to an increase in trade receivables ?2,361.92 million, which was partially offset by an increase in trade payables of ^1,118.24 million.
Our net cash used in operating activities for the three months ended June 30, 2023 was ?1,737.82 million, while our operating cash used before working capital adjustments was ?4,142.97 million. This decrease was primarily due to an increase in financial liabilities of ?3,412.61 million, which was partially offset by an increase in other financial assets of ?2,008.42 million.
Our net cash used in operating activities for Fiscal 2024 was ^13,127.35 million, while our operating cash used before working capital adjustments was ^15,153.48 million. This decrease was primarily due to an increase in financial liabilities of ?2,238.69 million, which was partially offset by an increase in other financial assets of ?2,602.64 million.
Our net cash used in operating activities for Fiscal 2023 was ?40,599.09 million, while our operating cash used before working capital adjustments was ?39,011.03 million. This increase was primarily due to an increase in other financial assets of ^3,112.31 million, which was partially offset by a decrease in other assets of ?1,285.91 million and increase in financial liabilities of ?516.42 million.
Our net cash used in operating activities for Fiscal 2022 was ?39,003.87 million, while our operating cash used before working capital adjustments was ^31,537.58 million. This increase was primarily due to an increase in trade receivables of ?9,566.90 million and increase in other assets of ?3,342.66 million. This was partially offset by an increase in trade payables of ?6,078.19 million and an increase in financial liabilities of ?1,205.51 million.
Investing Activities
Our net cash flow from investing activities for the three months ended June 30, 2024 was ?4,959.00 million, which primarily consisted of proceeds from the sale/maturity of investments of ^27,781.47 million. This was partially offset by purchase of investments of ?22,302.69 million.
Our net cash flow from investing activities for the three months ended June 30, 2023 was ?6,141.14 million, which primarily consisted of proceeds from sale/maturity of investments of ^21,723.52 million. This was partially offset by purchase of investments of ?15,367.08 million.
Our net cash flow from investing activities for Fiscal 2024 was ?14,584.58 million, which consisted of proceeds from sale/maturity of investments of ?100,122.19 million. This was partially offset by purchase of investments of ^82,721.27 million and Purchase of property, plant and equipment and other intangible assets of ?3,517.14 million.
Our net cash flow from investing activities for Fiscal 2023 was ?39,678.47 million, which consisted of the proceeds from sale/ maturity of investments of ?138,437.43 million and interest received of ?727.92 million. This was partially offset by purchas e of investments of ?97,678.69 million.
Our net cash used in investing activities for Fiscal 2022 was ^91,601.40 million, which primarily consisted of purchase of investments of ?210,735.66 million and purchase of property, plant and equipment and other intangible assets of ?2,913.48 million. This was partially offset primarily by proceeds from sale/ maturity of investments of ^118,881.46 million.
Financing A ctivities
Our net cash used in financing activities for the three months ended June 30, 2024 was ^118.90 million, and primarily included repayment of borrowings of ? 596.35 million and payment of principal portion of lease liabilities of ?480.03 million which was partially offset by proceeds from borrowings of ?1,249.89 million.
Our net cash used in financing activities for the three months ended June 30, 2023 was ?525.94 million, and included payment of principal portion of lease liabilities of ?360.57 million and payment of interest portion of lease liabilities of ?165.37 million.
Our net cash used in financing activities for Fiscal 2024 was ?1,227.95 million, and primarily included repayment of borrowings of ?2,900.82 million and payment of principal portion of lease liabilities of ?1,636.46 million. This was partially offset by proceeds from borrowings of ?3,976.97 million.
Our net cash used in financing activities for Fiscal 2023 was ?1,715.48 million and included payment of principal portion of lease liabilities of ?1,450.49 million and payment of interest portion of lease liabilities of ?264.99 million.
Our net cash flow from financing activities for Fiscal 2022 was ?136,341.48 million and primarily included proceeds from issue of instruments entirely equity in nature of ?139,055.63 million, which was partially offset by repayment of borrowings of ?918.02 million.
Indebtedness
As of June 30, 2024, we had current borrowings of ?1,020.03 million and non-current borrowings of ?1,546.08 million. Our borrowings include the following:
• Term loans from financial institution carrying amounting to ?2,513.93 million, carrying an interest rate ranging from 8.39% to 8.75% per annum in payable in 10 quarterly instalments from the date of loan and is repayable between January 2024 to December 2026. The term loan is primarily secured by current assets, fixed assets of one of the wholly owned subsidiary and corporate guarantee from the Company to the extent of 100% of the loan amount and collateral security to the extent of 30% by fixed deposits by the Company.
• Working capital loans from financial institution amounting to ?5.00 million, carried an interest rate of 11.20% per annum, repayable on 90 days tenor from the date of utilisation of facility. The facility is secured by pari-passu charge on the current assets and movable fixed assets of one of the wholly owned subsidiaries, further, the facility is guaranteed by a corporate guarantee from the Company.
• Working capital loans from financial institution amounting to ?47.18 million, carried an interest rate of 9.15% per annum repayable on 30 days tenor from the date of utilisation of facility. The facility is secured by collateral security to the extent of 100% by fixed deposits by the Company.
• A working capital facility, consisting of overdraft and purchase invoice financing, carried an interest rate of 10.30 % -10.35 % P.A, repayable on-demand/60 days basis the nature of utilisation of the facility. The facility was secured by pari-passu charge on the current assets and movable property, plant and equipment of the wholly owned subsidiarys business, further, the facility was guaranteed by Corporate Guarantee from the Company and fixed deposits margins. The entire outstanding balance has been repaid during the three months ended June 30, 2024.
Cash Outflow for Capital Expenditures
In the three months ended June 30, 2024 and 2023, and in Fiscals 2024, 2023 and 2022 our capital expenditures on purchase of property, plant and equipment and other intangible assets were ?699.21 million, ?862.95 million, ?3,517.14 million, ?1,682.99 million and ? 2,913.48 million, respectively.
Contractual Obligations
The table below sets forth our contractual obligations with definitive payment terms as of June 30, 2024. These obligations primarily relate to our borrowings, lease liabilities, trade payables and other financial liabilities.
R in millions)
| Particulars | Carrying value | On demand | 0-180 days | 180-365 days | More than 365 days | Total |
| Borrowings | 2,566.11 | - | 597.61 | 532.53 | 1,439.31 | 2,569.45 |
| Lease liabilities | 6,556.17 | - | 1,197.60 | 1,051.18 | 5,535.13 | 7,783.91 |
| Trade payables | 9,894.68 | - | 9,894.68 | - | - | 9,894.68 |
| Other financial liabilities | 6,365.05 | 562.25 | 5,765.02 | 37.78 | 6,365.05 |
Contingent Liabilities
The following table sets forth the principal components of our contingent liabilities as of June 30, 2024. These liabilities relate to tax demands and legal claims.
f? in million)
| Particulars | As of June 30, 2024 |
| Claims against the Group not acknowledged as debts: | |
| a. Legal claim | 1.21 |
| b. Income tax demands | 16.02 |
c. In December 2023, we received show cause notices from the GST authorities requiring us to show cause why a tax liability of ?3,267.63 million along with the interest and penalty for the period from July 2020 to March 31, 2022, should not be demanded and recovered. The alleged amount is calculated on the delivery charges collected by the company from the end user on behalf of the delivery partners. We are in the process of responding to the notices.
d. We are subject to taxation matters that arise from time to time in the ordinary course of business.
e. We are also involved in claims through consumer forum relating to quality of service, Competition Commission of India ("CCI" ), writ petition and other arbitral matters that arise from time to time in the ordinary course of our business. Some of these demands are disputed by us, and matters are presently under arbitration with the consumer forum and other arbitral tribunal.
Off-Balance Sheet Arrangements
We do not have any off-balance sheet arrangements, derivative instruments or other relationships with other entities that would have been established for the purpose of facilitating off-balance sheet arrangements.
Related Party Transactions
We enter into various transactions with related parties. For further information see "Other Financial Information - Related Party Transactions" on page 348 of this Updated Draft Red Herring Prospectus-I.
Seasonality
Our operations are impacted by seasonality. See "Risk Factors - Internal Risks - Seasonality, occasions and holidays may cause fluctuations in our sales and results of operations" on page 57 for further details.
Quantitative and Qualitative Disclosures about Market Risks
Market Risk
Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market pnces. Such changes in the values of financial instruments may result from changes in the foreign currency exchange rates, interest rates, credit, liquidity and other market changes. Our exposure to foreign currency exchange rate risk is very limited, as we do not have any significant foreign exchange transactions. Further, our investments are primarily in fixed rate interest bearing investments. Accordingly, we are not significantly exposed to interest rate risk.
Interest rate risk
Interest rate risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate due to changes in market interest rates. As at June 30, 2024 and as at March 31, 2024, our debt obligation includes term loans, overdraft facilities and purchase invoice financing arrangements from the financial institutions. The impact of possible change in floating rate on our profitability is not material. We have no debt obligation from financial institutions in Fiscals 2023 and 2022. Therefore, there is no impact of possible change in floating rate on the entitys profitability.
Credit Risk
Credit risk is the risk that counterparty will not meet its obligations under a financial instrument or customer contract, leading to financial loss. We are exposed to credit risk from our operating activities (primarily trade receivables and unbilled receivables) and from our treasury activities, including deposits with banks and financial institutions, investments in money market and other financial instruments. We manage credit risk through credit approvals, established credit limits and continuously monitoring the creditworthiness of customers to which we grant credit in the normal course of business.
Trade receivables
Trade receivables consists of receivables from large number of unrelated restaurant partners and receivables from customers which are in the regular course of B2B sales. Our credit risk with respect to receivables from restaurant partners is reduced by our business model which allows us to offset payables to restaurant partners against receivables. Our trade receivables are non- interest bearing and generally carries credit period of 0 to 60 days. We do not have significant credit risk exposure to any single counterparty. We do not hold collateral as security.
As per Ind AS 109, we use the expected credit loss model to assess the impairment loss. In determining the impairment allowance (allowance for doubtful debts), we have used a practical expedient by computing the expected credit loss allowance for trade receivables based on a provision matrix. The provision matrix considers historical credit loss experience as well as the current economic conditions and is adjusted for forward looking information. The expected credit loss allowance is based on the ageing of the receivables that are due and allowance rates used in the provision matrix.
Outstanding customer receivables are regularly and closely monitored basis the historical trend, we provide for any outstanding receivables beyond 180 days which are doubtful, the trade receivables on the respective reporting dates are net off the allowances which is sufficient to cover the entire life time loss of sales recognised including those that are currently less than 180 days outstanding, the total provision of ?880.27 million (June 30, 2023: ?779.37 million; March 31, 2024: ?773.08 million; March 31, 2023: ?723.33 million and March 31, 2022: ? 493.19 million) consists of both these types of amounts.
Financial instruments and cash deposits
Credit risk from balances with banks and financial institutions is managed by our treasury department in accordance with our approved investment policy. Investments of surplus funds are made primarily in liquid mutual fund units, fixed maturity plan securities, fixed deposits, quoted bonds issued by government and quasi-government organisations, certificate of deposits, commercial papers etc. Investments of surplus funds are made only with approved counterparties and within credit limits assigned to each counterparty. Counterparty credit limits are reviewed by our Audit Committee on a periodic basis. The limits are set to minimise the concentration of risks and therefore mitigate financial loss through counterpartys potential failure to make payments.
Liquidity Risk
Liquidity risk is the risk of being unable to meet the payment obligations resulting from financial liabilities, which may arise from unavailability of funds. The exposure to liquidity risk is closely monitored using daily liquidity reports and regular cash forecast reports to ensure adequate distribution. We believe that cash and cash equivalents and current investments are sufficient to meet its current requirements, accordingly, no liquidity risk is perceived.
Significant Economic Changes
Other than as described elsewhere in this Updated Draft Red Herring Prospectus-I, there are no other significant economic changes that materially affect or are likely to affect income from continuing operations.
Unusual or Infrequent Events of Transactions
Except as described in this Updated Draft Red Herring Prospectus-I, there have been no other events or transactions that may be described as "unusual" or "infrequent".
Known Trends or Uncertainties
Our business has been affected and we expect will continue to be affected by the trends identified above in the heading titled " -Principal Factors Affecting Our Financial Condition and Results of Operations" and the uncertainties described in the section titled "Risk Factors" beginning on page 33. Except as described or anticipated in this Updated Draft Red Herring Prospectus-I, there are no known factors which we expect will have a material adverse impact on our revenues or income from continuing operations.
Future Relationship Between Cost and Income
Other than as described elsewhere in this Updated Draft Red Herring Prospectus-I, there are no known factors that might affect the future relationship between costs and revenues.
Reservations, qualifications, matters of emphasis or adverse remarks
Below is a summary of the reservations, qualifications, matters of emphasis or adverse remarks for the periods included in the examination report for the periods indicated:
Fiscal 2024:
• Emphasis of matter: Highlights the change in number of weighted average equity shares considered for calculation of restated loss per share for Fiscal 2023.
• Qualifications or adverse remarks in the Companies (Auditor sReport) Order 2020: The terms and conditions of loans granted by the Company to a wholly owned subsidiary (aggregating to ?1,360.00 million and balance outstanding as
at the balance sheet date ?9,685.02 million (includes accrued interest)) may be construed as prejudicial to the Companys interest on account of the fact that the loans have been granted during the year and impaired at the end of the year considering the recoverability of the loans.
• Qualifications or adverse remarks in the Companies (Auditors Report) Order 2020: With respect to the Company, the repayment of principal and payment of interest has been stipulated and the receipts have been regular except for the following:
| Name of the entity | Amount (Interest) (Rs. millions) | Due Date | Extent of delay | Remarks, if any |
| Supr Infotech Solutions Private Limited | 358.46 | Multiple | 1 to 25 days | Received subsequent to due dates |
| Scootsy Logistics Private Limited | 1,921.15 | Multiple | 1 to 29 days | Received subsequent to due dates |
• Qualifications or adverse remarks in the Companies (Auditors Report) Order 2020: With respect to the Company, the following instances of loans falling due during the year were settled by fresh loans:
| Name of the parties | Aggregate amount of loans granted during the year (Rs. millions) | Aggregate overdue amount settled by fresh loans granted to same parties (Rs. millions) | Percentage of the aggregate to the total loans granted during the year |
| Supr Infotech Solutions Private Limited | 1,360 | 682.19 | 50.16% |
• Qualifications or adverse remarks in the Companies (Auditor s Report) Order 2020: With respect to the Company, in respect of private placement of 0.01% compulsorily convertible cumulative preference shares made during the year, the Company has duly complied with the requirements of Section 42 and Section 62 of the Companies Act, 2013, except for the following:
| Name of securities | Type of issue | Amount involved (Rs. millions) | Nature of non-compliance |
| CCCPS# | Private placement | 3,836.97 | Delay of 11 days in filing of Return of allotment |
#0.01 % compulsorily convertible cumulative preference shares • Qualifications or adverse remarks in the Companies (Auditor s Report) Order 2020:
The Company has incurred cash losses of Rs.12,139.97 million in Fiscal 2024 and Rs.30,965.00 million in the immediately preceding financial year.
• Qualifications or adverse remarks in the Companies (Auditor s Report) Order 2020: Scootsy Logistics Private Limited has not defaulted in repayment of loans and borrowing or in the payment of interest thereon to banks or financial institutions or any other lender, except those mentioned below:
| Name of borrowing including debt securities | Amount not paid on due date (Rs. millions) | Whether principal or interest | No. of days delay or unpaid | Remarks, if any |
| Borrowings from Holding Company | 1,921.15 | Interest | 1 to 29 days | Multiple instance of delay |
• Qualifications or adverse remarks in the Companies (Auditor s Report) Order 2020: Scootsy Logistics Private Limited has incurred cash losses of Rs.910.71 million in Fiscal 2024 and Rs.3,245.00 million in the immediately preceding financial year.
• Qualifications or adverse remarks in the Companies (AuditorsReport) Order 2020: Supr Infotech Solutions Private Limited has not defaulted in repayment of loans and borrowing or in the payment of interest thereon to banks or financial institutions or any other lender, except those mentioned below:
| Name of borrowing including debt securities | Amount not paid on due date (Rs. millions) | Whether principal or interest | No. of days delay or unpaid | Remarks, if any |
| Borrowings from Holding Company | 358.46 | Interest | 1 to 25 days | None |
• Qualifications or adverse remarks in the Companies (AuditorsReport) Order 2020: Supr Infotech Solutions Private Limited has incurred cash losses of Rs.1,016.57 million in Fiscal 2024 and Rs.2,263.00 million in the immediately
preceding financial year.
Fiscal 2023:
• Qualifications or adverse remarks in the Companies (Auditor sReport) Order 2020: The terms and conditions of loans granted by the Company to a wholly owned subsidiary (aggregating to Rs.2,110 million and balance outstanding as at the balance sheet date Rs.2,110 million) may be construed as prejudicial to the Companys interest on account of the fact that the loans have been granted during the year and impaired at the end of the year considering the recoverability of the loans.
Fiscal 2022:
• Emphasis of matter: We draw attention to Note 14(g) to the consolidated financial statements which indicates that the comparative information presented as at and for Fiscal 2021 has been restated with respect to the impact of accounting for the extinguishment of financial liability and conversion to equity on waiver of buy back rights.
Significant Developments after June 30, 2024 that may affect our future results of operations
Except as stated in this Updated Draft Red Herring Prospectus-I no circumstances have arisen since the date of the Restated Consolidated Financial Information as disclosed in this Updated Draft Red Herring Prospectus-I which materially and adversely affect or are likely to affect our operations or profitability, or the value of our assets or our ability to pay our material liabilities within the next twelve months.
Critical Accounting Policies
Basis of consolidation
We consolidate the companies which we own or control. The Restated Consolidated Financial Information comprises our financial statements, those of our subsidiaries and our share of profit and loss of associates, as detailed in note 1 of Annexure V of the Restated Consolidated Financial Information.
Control exists when the parent has the power over the entity, is exposed, or has rights, to variable returns from its involvement with the entity and has the ability to affect those returns by using its power over the entity. Power is demonstrated through existing rights that give the ability to direct relevant activities, those which significantly affects the entitys returns. Subsidiary is consolidated from the date of control commences until the date control ceases. Associate entity has been considered in the Restated Consolidated Financial Information as per equity method. They are initially recognised at cost which includes transaction costs. Subsequent to initial recognition, the Restated Consolidated Financial Information includes our share of the profit or loss and Other comprehensive income of equity accounted investees, until the date on which the significant influence ceases.
The Restated Consolidated Financial Information of Group companies are consolidated on a line-by-line basis and intra-group balances and transactions including unrealised gain/ loss from such transactions are eliminated upon consolidation. This Restated Consolidated Financial Information are prepared by applying uniform accounting policies in use by us.
The Restated Consolidated Financial Information of all entities used for the purpose of consolidation are drawn up to same reporting date as our reporting date, i.e., three months ended June 30, 2024 and June 30, 2023, and the years ended March 31, 2024, March 31, 2023 and March 31, 2022 as the case may be.
Revenue recognition
We generate revenue mainly from providing online platform services to partner merchants (including restaurant merchant, grocery merchants and delivery partners), advertisement services, sale of food and traded goods, supply chain services, subscriptions and other platform services.
Revenue is recognised when control of goods and services is transferred to the customer upon the satisfaction of performance obligation under the contract at a transaction pnce that reflects the consideration to which we expect to be entitled in exchange for those goods or services. The transaction pnce of goods sold and services rendered is net of any taxes collected from customers and variable consideration on account of various discounts and schemes offered by us. The transaction price is an amount of consideration to which the entity expects to be entitled in exchange for transferring promised goods or services. Specific revenue recognition criteria for all key streams of revenue have been detailed in subsequent sections.
Where performance obligation is satisfied over time, we recognise revenue over the contract period. Where performance obligation is satisfied at a point in time, we recognise revenue when customer obtains control of promised goods and services
in the contract.
Identification of customer
We consider a party to be a customer if that party has contracted with the entity to obtain goods or services that are an output of the entitys ordinary activities in exchange for consideration. Based on the contractual obligations and the substance of the transactions, we consider the restaurant merchants, other merchants as customers. In select cases, transacting users and delivery partners are considered as customers when such users carry out transactions on the platform where the services are rendered by us, or we charge the service charge for use of technology platform from the users or delivery partners.
Principal vs agent consideration
The fulfilment of the order is the responsibility of the partner merchants; accordingly, the Gross order value is not recognised as revenue, only the order facilitation fee/ commission to which we are entitled is recognised as revenue.
We consider ourselves as a principal in an arrangement when we control the goods or service provided.
In respect of transaction with delivery partners, we are merely a technology platform provider, connecting delivery partners with the restaurant partners and the consumers. Accordingly, the Gross delivery fees is not recognised as revenue. We may, from time to time, collect service charge from the delivery partners which is recognised as revenue.
Revenue from platform services
Order facilitation fee
We generate income from partner merchants for facilitating food/ grocery ordering, dining out and delivery services through our technology platform.
Income generated from partner merchants, for use of our platform related services is recognised when the transaction is completed as per the terms of the arrangement with the respective partner merchants, being the point at which we have no remaining performance obligation.
The fulfilment of the order is the responsibility of partner merchants; accordingly, the gross order value is not recognised as revenue, only the order facilitation fee to which we are entitled is recognised as revenue.
Delivery income
We earned delivery income by providing food/ grocery delivery services. Such income was recorded by us on gross basis, as fulfilment of the food delivery order was our responsibility. Delivery fee was recognised as revenue at the point of order fulfilment.
Effective August 2020, we are merely a technology platform provider connecting delivery partners with the Restaurant partners and the users and we earn revenue from delivery partners in the form of service charges for use of technology platform by them.
Advertisement revenue
Advertisement revenue is generated from the sponsored listing fees paid by partner merchants and brands. Advertisement revenue is recognised when a consumer engages with the sponsored listing based on the number of clicks. There are certain contracts, where, in addition to the clicks, we sell online advertisements which are usually run over a contracted period of time. Revenue is presented on a gross basis in the amount billed to partner merchants as we control the advertisement space.
Onboarding fee
Partner merchants and delivery partners pay one-time non-refundable fees to join our network. These are recognised on receipt or over a period of time in accordance with terms of agreement entered into with such relevant partner.
Event income
We generate income from ticketing revenue, Brand promotion fee and facilitation fee by organising and curating events under different categories (music, comedy etc). Event Income is recognised on completion of the event. We consider ourselves a principal in this arrangement and accordingly the revenue is recognised at sale value minus variable considerations such as discounts, incentives and other such items offered to the customer.
Subscription fee
Revenue from the subscription contracts is recognized over the subscription period on a systematic basis in accordance with the terms of agreement entered with the customer.
Service charge
We generate revenue on account of service charges collected from users/ delivery partners for use of technology platform to facilitate placement and delivery of orders. Service charge recognised by us is net of discounts and incentives, if any, given/ offered by us on transaction-to-transaction basis.
Income from sale of food and traded goods
Revenue from sale of food and traded goods are recognised when the performance obligations are satisfied i.e., when control of promised goods are transferred to the customer i.e., when the food or traded goods are delivered to the customer. The Group considers itself a principal in this arrangement and accordingly the revenue is recognized at sale value minus variable considerations such as discounts, incentives and other such items offered to the customer.
Supply chain services
Revenue from rendering of supply chain services is recognized over the time when control on the services is transferred to the customer i.e., when the customer has the ability to control the use of the transferred services provided and generally derive their remaining benefits.
Variable consideration such as discounts and incentives
We provide various types of incentives, discounts to users to promote the transactions on our platform. If we identify the transacting consumers as one of our customers for the services, the incentives/ discounts offered to the transacting consumers are considered as payment to customers and recorded as reduction of revenue on a transaction-by-transaction basis. The amount of incentive/ discount in excess of the income earned from the transacting consumers is recorded as advertising and marketing expenses.
When incentives/ discounts are provided to transacting users where we are not responsible for services, the transacting consumers are not considered our customers, and such incentives/ discounts are recorded as advertising and marketing expenses.
Other income
Profit on sale of mutual funds and fair value impact on mark-to-market contracts are recognised on transaction completion and or on reporting date as applicable.
Interest income is recognised using the effective interest method or time-proportion method, based on rates implicit in the transaction.
Dividend income is recognised when our right to receive dividend is established.
Contract balances Trade receivables
A receivable is recognised if an amount of consideration that is unconditional (i.e., only the passage of time is required before payment of the consideration is due). Refer to note 2.13(b) of Annexure V of the Restated Consolidated Financial Information.
Contract assets
Contract assets is our right to consideration in exchange for services that we have transferred to a customer where that right is conditioned on something other than the passage of time is required.
Contract liabilities
A contract liability is recognised where we have an obligation to transfer goods or services to a customer for which the entity has received consideration (or the amount is due) from the customer. Contract liabilities are recognised as revenue when we perform under the contract (i.e., transfer control of the related goods or services to the customer).
Other receivables
Brand claim receivables are recognised when it is probable that economic benefits will flow to us, and the amount of the claim
can be reliably measured. We will assess the likelihood of receiving the brand claim and recognise it as a receivable in the financial statements when the criteria are met. The brand claim receivables are initially measured at their fair value, which is typically the amount we expect to receive in cash or cash equivalents. Subsequent measurement will be done to identify changes in the expected cash flows associated with the brand claim receivables, if any.
Impairment of financial assets
We assess at the end of each reporting period whether a financial asset or a group of financial assets is impaired. Ind AS 109 (‘Financial instruments) requires expected credit losses to be measured through a loss allowance. We recognise lifetime expected losses for all contract assets and/or all trade receivables that do not constitute a financing transaction. For all other financial assets, expected credit losses are measured at an amount equal to the 12 month expected credit losses or at an amount equal to the lifetime expected credit losses if the credit risk on the financial asset has increased significantly since initial recognition.
Credit-impairedfinancial assets
At each reporting date, we assess whether financial assets carried at amortised cost and debt securities at fair value through other comprehensive income ("FVOCI") are credit-impaired. A financial asset is ‘credit-impaired when one or more events that have a detrimental impact on the estimated future cash flows of the financial asset have occurred.
Evidence that a financial asset is credit-impaired includes the following observable data:
• significant financial difficulty of the debtor;
• a breach of contract such as a default or being more than 180 days past due;
• the restructuring of a loan or advance by us on terms that we would not consider otherwise;
• it is probable that the debtor will enter bankruptcy or other financial reorganisation; or
• the disappearance of an active market for a security because of financial difficulties.
Presentation of allowance for ECL in the balance sheet
Loss allowances for financial assets measured at amortised cost are deducted from the gross carrying amount of the assets. For debt securities at FVOCI, the loss allowance is charged to profit or loss and is recognised in other comprehensive income ("OCI").
Impairment of non-financial assets
Non-financial assets including property, plant and equipment and intangible assets with finite life and intangible assets under development are evaluated for recoverability whenever there is any indication that their carrying amounts may not be recoverable. If any such indication exists, the recoverable amount (i.e. higher of the fair value less cost to sell and the value-in- use) is determined on an individual asset basis unless the asset does not generate cash flows that are largely independent of those from other assets. In such cases, the recoverable amount is determined for the cash generating unit ("CGU") to which the asset belongs.
If the recoverable amount of an asset (or CGU) is estimated to be less than its carrying amount, the carrying amount of the asset (or CGU) is reduced to its recoverable amount. An impairment loss is recognised in the Restated Consolidated Statement of Profit and Loss. For assets excluding goodwill, an assessment is made at each reporting date to determine whether there is an indication that previously recognised impairment losses no longer exist or have decreased. If such indication exists, we estimate the assets or CGUs recoverable amount.
In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset. In determining fair value less costs of disposal, recent market transactions are taken into account, if available. If no such transactions can be identified, an appropriate valuation model is used.
A previously recognised impairment loss is reversed only if there has been a change in the assumptions used to determine the assets recoverable amount since the last impairment loss was recognised. The reversal is limited so that the carrying amount of the asset does not exceed its recoverable amount, nor exceed the carrying amount that would have been determined, net of depreciation, had no impairment loss been recognised for the asset in prior years. Such reversal is recognised in the Restated Consolidated Statement of Profit and Loss unless the asset is carried at a revalued amount, in which case, the reversal is treated
as a revaluation increase.
A cash generating unit to which goodwill has been allocated is tested for impairment annually, or more frequently when there is an indication that the unit may be impaired. If the recoverable amount of the cash generating unit is less than its carry ing amount, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro rata based on the carrying amount of each asset in the unit. Any impairment loss for goodwill is recognised in Restated Consolidated statement of Profit and Loss. An impairment loss recognised for goodwill is not reversed in subsequent periods.
Leases
Right-of-use assets
We recognise right-of-use assets at the commencement date of the lease (i.e., the date the underlying asset is available for use). Right-of-use assets are measured at cost, less any accumulated depreciation and impairment losses, and adjusted for any remeasurement of lease liabilities. The cost of right-of-use assets includes the amount of lease liabilities recognised, initial direct costs incurred, lease payments made at or before the commencement date less any lease incentives received and an estimate of costs to be incurred by the lessee in dismantling and removing the underlying asset, restoring the site on which it is located or restoring the underlying asset to the condition required by the terms and conditions of the lease. Right-of-use assets are depreciated on a straight-line basis over the shorter of the lease term or the estimated useful lives of the assets whichever is earlier.
If ownership of the leased asset transfers to us at the end of the lease term or the cost reflects the exercise of a purchase option, depreciation is calculated using the estimated useful life of the asset. The right-of-use assets are also subject to impairment. Refer to Impairment of non-fmancial assets" above.
Lease liabilities
At the commencement date of the lease, we recognise lease liabilities measured at the present value of lease payments to be made over the lease term. The lease payments include fixed payments (including in-substance fixed payments) less any lease incentives receivable, variable lease payments that depend on an index or a rate, and amounts expected to be paid under residual value guarantees. The lease payments also include the exercise pnce of a purchase option reasonably certain to be exercised by us and payments of penalties for terminating the lease if the lease term reflects us exercising the option to terminate. Variable lease payments that do not depend on an index or a rate are recognised as expenses (unless they are incurred to produce inventories) in the period in which the event or condition that triggers the payment occurs.
In calculating the present value of lease payments, we use its incremental borrowing rate at the lease commencement date as the interest rate implicit in the lease is not readily determinable. After the commencement date, the amount of lease liabilities is increased to reflect the accretion of interest and reduced for the lease payments made. In addition, the carrying amount of lease liabilities is remeasured if there is a modification, a change in the lease term, a change in the lease payments (e.g., changes to future payments resulting from a change in an index or rate used to determine such lease payments) or a change in the assessment of an option to purchase the underlying asset. Our lease liabilities are included in financial liabilities.
Short-term leases and leases of low-value assets
We apply the short-term lease exemption (i.e., those leases that have a lease term of 12 months or less from the commencement date and do not contain a purchase option). We also apply the lease of low-value assets recognition exemption to leases of assets that are considered to be low value. Lease payments on short-term leases and leases of low-value assets are recognised as expense on a straight-line basis over the lease.
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