Urban Company Q4 Results: Stock falls 6% after loss widens on increased expenses

Shares of Urban Company Ltd. fell as much as 6% on Friday, May 8, after the company's March quarter results saw its losses widen on a year-on-year basis due to increased expenses.

Urban Company reported a net loss of ₹161 crore compared to a loss of ₹2 crore during the same quarter last year.

Revenue for the period increased by 43% from the same quarter last year to ₹426 crore from ₹298 crore earlier.

Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) for the quarter also stood at a loss of ₹114.4 crore compared wider than the loss of ₹9.4 crore in the year-ago period.

Urban Company's India segment revenue increased to ₹288.5 crore from ₹228 crore earlier. Most of the growth came from the products business. The segment's EBIT more than doubled from last year to ₹35.64 crore from ₹16.79 crore. However, the figure was lower than the ₹52.1 crore figure reported in the December quarter.

Revenue of the Native business grew to ₹70 crore from ₹40 crore last year, while its EBIT loss remained steady at ₹8 crore.

Instahelp, the service that Urban Company is making investments in, reported an EBIT loss of ₹119 crore during the quarter on revenue of ₹9 crore. The service had reported a revenue of ₹7 crore in December.

Shares of Urban Company ended 6% lower on Friday after the results announcement at ₹137.8.