The shares of Shiprocket surged over 6% at intraday trade on Thursday November 5, before paring most of its gains, after the company reported strong numbers for in its second quarter financial results.
The company’s revenue increased 34.8% year-on-year to ₹674 crore from ₹500 crore, while it reported a net profit of ₹0.6 crore, compared with a loss of ₹20.2 crore a year earlier.
The Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) loss narrowed to ₹2.2 crore from ₹20.3 crore.
This marks the company’s second financial result announcement post its listing. The company’s shares had debuted on the exchanges on August 19, after its IPO received a strong response from investors.
The stock listed at ₹131 on the NSE, a 35.05% premium over its issue price of ₹97, while it debuted at ₹129.50 on the BSE, up 33.5%.
What the company says about the results
Shiprocket told CNBC-TV18 that lower losses in its emerging businesses helped its adjusted EBITDA turn positive. The company’s gross merchandise value (GMV) had grown to ₹37,000 crore, supported by better merchant adoption, while its average revenue per user (ARPU) contributed around 25% to growth in Q2.
The merchant count reached 2.33 lakh, with 20,000 customers using its checkout platform, which it said offered significant scope for further adoption, according to the company.
Shiprocket further said that it expected margin expansion in its core business but noted that Q3 is seasonally weaker.
How did the company fare in the first quarter?
In the first quarter, Shiprocket reported a 34% year-on-year increase in revenue to ₹592.08 crore from ₹442.4 crore. Its net loss narrowed to ₹13.7 crore from ₹18.03 crore, while its EBITDA loss declined to ₹10.86 crore from ₹17.62 crore in the year-ago quarter.
How has the market reacted
The company’s shares had jumped over 6% after the announcement but, has since pared most of its gains to trade 2.18% higher as of 12.02 pm on Thursday. The stock has fallen 6.06%, since its listing date.
Shiprocket Q2 Results: Revenue grows 35%, EBITDA loss narrows; Stock gives up gains