Swiggy Ltd — Q4 FY26

Swiggy Ltd Q4 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=rfAbHwQtXcM Published: 5 days ago

0:01 1 second Ladies and gentlemen, good evening and welcome to the Swiggy Limited Q4 and FI26 earnings conference call. As a 0:10 10 seconds reminder, all participant lines will be in the listen only mode and there will be an opportunity for you to ask questions after the presentation 0:17 17 seconds concludes. Should you need assistance during this conference call, please signal an operator by pressing star then 0:24 24 seconds zero on your touchstone phone. Please note that this conference is being recorded. I now hand the conference over 0:32 32 seconds to Mr. Suman Sharma from the investor relations team. Thank you and over to you sir. 0:38 38 seconds Thank you operator. Hello everyone and welcome to the Q4 and FY 2026 earnings conference call for Swiggy Limited. Our 0:46 46 seconds financial results and shareholders letters have been published on the exchanges and the information pack has been placed in the investor relations section of our website www.suri.com. 0:55 55 seconds sudi.com. We would like to inform you that the management may make certain comments on this call that one could deem forward-looking statements. 1:03 1 minute, 3 seconds Specifically, the financial guidance and proform that we will provide on this call are management estimates based on certain assumptions and have not been 1:11 1 minute, 11 seconds subjected to any audit review or examination procedures. Sri does not guarantee these statements and is not obliged to update them at any time. 1:19 1 minute, 19 seconds Joining us on the call today are Shrihasha Majidi MD Health Group CEO, Mr. Rahul Bhra, our CFO, Rohit Kapoor, 1:27 1 minute, 27 seconds CEO of Food Marketplace, and Amitesh Cha, CEO of Instamat. With this brief preamble, let us start the Q&A. 1:34 1 minute, 34 seconds Operator, you can please go ahead. 1:38 1 minute, 38 seconds Thank you very much. We'll now begin with the question and answer session. 1:43 1 minute, 43 seconds Anyone who wishes to ask a question may press star and one on the telephone. If you wish to remove yourself from the question queue, you may press R and two. 1:53 1 minute, 53 seconds Participants are requested to use handsets while asking the question. 2:04 2 minutes, 4 seconds The first question is from the line of Sachin from Bank of America. Please go ahead. 2:11 2 minutes, 11 seconds Hi, thank you for the opportunity. I have three questions. Uh first question is about some of the comments you guys mentioned in the shareholder lender about doubling down on differentiation. 2:21 2 minutes, 21 seconds Can you help us understand three to four areas of differentiation for you guys versus competition? 2:30 2 minutes, 30 seconds Uh hi uh sorry. Okay. Hi hasha here. 2:39 2 minutes, 39 seconds talk about four examples of how differentiation can look like in the category. So um thanks for the question. 2:46 2 minutes, 46 seconds So even in the shareholder letter we talked about one example which is noise level. 2:53 2 minutes, 53 seconds Look at categories that noise operates in like bread or eggs etc. I can just take the three four examples with what 3:01 3 minutes, 1 second we've done with noise only. If you go um in the case of eggs, you will find high protein eggs that is coming with much 3:08 3 minutes, 8 seconds better quality feed for the um animals that that just makes a better that is an upgraded version. You think about um 3:16 3 minutes, 16 seconds bread more freshly baked bread with much lesser preservatives that just significantly 3:23 3 minutes, 23 seconds the quotient of the product and the taste of the product as well. So these are maybe some examples in the the food 3:31 3 minutes, 31 seconds category but uh even outside that I think there are some explorations that we've done um you know in the cookware 3:39 3 minutes, 39 seconds category with trip black where um we work on expanding the category very differentially through some interventions we made both in assortment 3:48 3 minutes, 48 seconds and price to birth academy. Um you will actually in the next couple of months see a host of such examples pop up 3:56 3 minutes, 56 seconds across the instar app but uh the broad theme is Indians are largely always looking for upgrades that is a theme of 4:04 4 minutes, 4 seconds the economy and we believe that there is an opportunity in being the platform that can democratize their aspiration 4:12 4 minutes, 12 seconds and offer more and more access to consumers across a host of categories. 4:16 4 minutes, 16 seconds Noise is one route to maybe give access to great quality bread or great quality eggs to our consumers. Working with a 4:24 4 minutes, 24 seconds brand to open up something in the trifly category is an attempt to upgrade in the home cooking category by creating or 4:32 4 minutes, 32 seconds creating a better version. So that is the broad theme for us. 4:39 4 minutes, 39 seconds Got it Hara. So just from what I understand the area of differentiation is uh product categories of SKUs which 4:46 4 minutes, 46 seconds have been put on the platform versus anything on speed and others and out there possible to throw some numbers how 4:52 4 minutes, 52 seconds much of a total GOV or NOV right now are these SKUs uh and you know where do we expect that proportion to be as a 5:00 5 minutes percentage of uh NOV in terms of differentiated offerings. 5:05 5 minutes, 5 seconds Unfortunately at this point we will um we'll be unable to share a lot of details as we mentioned it's still early 5:13 5 minutes, 13 seconds but we will come back over the next couple of quarters as we have more to show on this also one um specific detail 5:21 5 minutes, 21 seconds that I want to add if it wasn't clear is this is not a strategy that is exclusionary even as we mentioned in our 5:28 5 minutes, 28 seconds um shareholder report will continue to serve all core related needs of our um today's users 5:35 5 minutes, 35 seconds but actually amplify the upgrades part as opposed to saying we'll only do the upgrades. Thank you. 5:42 5 minutes, 42 seconds Got it. And directly I understand you can't give exact numbers but when we directly think about it is it going to be 10 20%age of NOV or is it going to be 5:51 5 minutes, 51 seconds much much higher so Rahul here I think would be extremely hard for us considering that we are not trying to create a differentiation here. 6:02 6 minutes, 2 seconds I think ultimately the consumer proposition is very strong at least early signs that we have seen with some of the labels that we have launched as well as working with some brand 6:10 6 minutes, 10 seconds partners. Uh we are seeing pretty good uh you know uh uptake. I think over time what really helps uh you know propositions like this is consumer 6:19 6 minutes, 19 seconds retention and frequency increase over time and that's where the largest benefit of these propositions will come through. So uh as Hasha mentioned in a 6:28 6 minutes, 28 seconds couple of quarters you know we will give you some more color in terms of how this is progressing for us but early signs are very very encouraging. 6:38 6 minutes, 38 seconds Thank you Sachin. I request to come back for a follow-up question. Yes. 6:45 6 minutes, 45 seconds Thank you. The next question is from the line of Venit Chen from city. Please go ahead. 6:50 6 minutes, 50 seconds Yeah. Hi thanks for the opportunity. Uh couple of questions from my side. Uh so first with this private label and with 6:58 6 minutes, 58 seconds noise that you spoke about is that is that uh you know contribution margin positive for you uh in quick commerce uh 7:07 7 minutes, 7 seconds private label as a whole or you know specific brands within that that's first question and I'll uh just follow up with 7:15 7 minutes, 15 seconds one more question here for us as we talked about noise is for us an attempt to actually 7:23 7 minutes, 23 seconds build on the differentiated assortment and a tool for us to improve stickiness and repeats and engagement on the 7:30 7 minutes, 30 seconds platform. It's not a margin maximizing equation. Having said that, it is a contribution margin. 7:37 7 minutes, 37 seconds Yeah, as you see, it's not a value play, right? Widget. So, uh what we are not trying to do is think of this as another commoditized play where you make 7:44 7 minutes, 44 seconds additional couple of percentage points margins. Uh this is a differentiated offering. uh this could be of even higher value and uh you know therefore 7:53 7 minutes, 53 seconds more contribution margin and across categories as we build this out we will definitely want to accrete our overall margin structure versus uh you know doing just a commoditized play. 8:05 8 minutes, 5 seconds Understood. Um my next question is you know can you elaborate a little bit more on this commentary where you say that 8:12 8 minutes, 12 seconds you've repurposed customer incentives away from direct wallet subsidies. 8:17 8 minutes, 17 seconds uh if you can elaborate on that and then you know also I see that you know marketing spends below contribution line 8:25 8 minutes, 25 seconds have started to tickle down this quarter uh now I know one Q is seasonally strong typically you see higher NTO additions 8:33 8 minutes, 33 seconds in 1Q uh so how should one think about both you know how you're tracking so far in one Q on MTO additions in 8:40 8 minutes, 40 seconds quickcommerce uh and the marketing spends below CM and then if you can explain that commentary on repurposing customer incentives. Thank you. 8:49 8 minutes, 49 seconds Yes, as we had said uh hi it's it's Amitesh here. As we had said in our last earning call as well uh you know there 8:57 8 minutes, 57 seconds are multiple ways in which we we will be reaching our CM number. One is the repurpose of the incentives that we give 9:04 9 minutes, 4 seconds to the uh the end consumer on the on the ballot. We rationalize it, we don't reduce it. And in the way that it happens is that it allows for uh you 9:12 9 minutes, 12 seconds know better retention for the end consumer as well. And you know that's the process that we have taken. It also means that you know a lot of time what will happen is a high frequency you know 9:21 9 minutes, 21 seconds customer will will retain better uh and which is the you know process that we have we have eventually taken. Uh uh the 9:29 9 minutes, 29 seconds second question was on uh on the marketing spends uh marketing spend below CM and the MU additions how we are tracking in one Q. 9:37 9 minutes, 37 seconds Yeah see uh there are two ways okay the marketing spends what we are doing is uh is commiserate to the growth that we are 9:45 9 minutes, 45 seconds essentially looking for. uh the way we looked at our MPU is that there is a lot of consumer base that we have that we 9:52 9 minutes, 52 seconds need to uh focus more on on retention and and repeat on the platform and which is what we have been trying to do over the last couple of quarters and which we 10:01 10 minutes, 1 second will continue to do uh you know over the next couple of quarters as well. That said, there is a you know definite marketing spend that will keep in that 10:08 10 minutes, 8 seconds we will keep on going on the new consumer base. That new consumer base will eventually keep on increasing. But yes, at the same time, our MDU will 10:16 10 minutes, 16 seconds still face slight uh headwind on the base that are low AOV, low frequency and which will eventually continue. 10:25 10 minutes, 25 seconds I see. And sorry just to uh so so one Q will you will uh does that mean uh you 10:32 10 minutes, 32 seconds know MTO additions might uh slow is that what you said sorry I didn't quite follow that part if you can clarify. 10:39 10 minutes, 39 seconds No we can't uh you know necessarily give an idea on what will be the forward-looking uh you know assumption on this on this number but as a as a 10:48 10 minutes, 48 seconds strategy it has not changed in the way that we are looking. 10:50 10 minutes, 50 seconds Understood. Uh and one last question from my side. You have a medium-term guide here now of 1 trillion in quick commerce and I think you said some 10:59 10 minutes, 59 seconds something to the effect of that you'll get to rupees 500 billion odd you know double the current pace without adding too many stores. So in general uh you 11:08 11 minutes, 8 seconds know uh is uh you know the 500 to 1 trillion journey how will that come about? Is that geographic expansion 11:17 11 minutes, 17 seconds uh on the cards beyond F27 is that how one should uh read those comments in conjunction 11:25 11 minutes, 25 seconds hi Rahul here. So I think uh what we are really drawing out the medium-term guidance here is in terms of the size of the business that we built and where we 11:34 11 minutes, 34 seconds see this going right. So even if we take conservative estimator estimates of say 35 to 50% uh in this business we can 11:42 11 minutes, 42 seconds potentially get to the one lakh cr in between three and a half to 5 years right depending on how the overall market uh growth really plays out. 11:50 11 minutes, 50 seconds So for us this is you know really establishing the size of the price that we're going after and also establishing the overall contribution margin pool and 11:57 11 minutes, 57 seconds the beta margin pool that we can clearly see from the business that we've built. 12:02 12 minutes, 2 seconds uh along with a re you know reiteration of our guidance of having achieved contribution margin you know break or I know our guidance of achieving break 12:09 12 minutes, 9 seconds even in the current quarter and we would have moved it massively by close to five and a half percentage points over the last year itself right and perhaps we 12:16 12 minutes, 16 seconds are the only one in the industry who have moved it in such a short time so for us these are the choices which are ahead of us of course growth is 12:25 12 minutes, 25 seconds important uh and we don't see the necessity to add stores necessarily or that is the few quarters considering the 12:33 12 minutes, 33 seconds you know uh considering the current utilization that we have but outside of this geographical expansion as well as store expansion will absolutely be 12:42 12 minutes, 42 seconds critical for us to get to those runs here. Hi Asha. Yeah, just to build on this answer a little bit more, we've 12:51 12 minutes, 51 seconds also given this ambition for what we want in the medium term to also help explain any definitions that we will be making because this is the framework 12:59 12 minutes, 59 seconds that we've used in the past. It was important for us to get to this CM0 milestone in a in a quick enough time 13:07 13 minutes, 7 seconds frame for us to be able to feel the chances of the ambition becoming stronger. And every decision that we take financially, investment wise is all 13:16 13 minutes, 16 seconds going to be uh judged by does it get us closer to this ambition or further from this ambition. 13:21 13 minutes, 21 seconds Understood. Thank you so much and uh best of luck you guys. Thank you. Thank you. 13:30 13 minutes, 30 seconds Next question is from N of Chagant Gore from Burnstein. Please go ahead. 13:39 13 minutes, 39 seconds Hello. Hi. Sorry. My question is on uh on food delivery. Uh my first question. 13:44 13 minutes, 44 seconds So uh we've had a phenomenal uh growth in food delivery. So one just clarification all our new uh experiments 13:53 13 minutes, 53 seconds on food delivery whether it is or maintenance etc. they are all included in the financials for food delivery uh 14:00 14 minutes and both growth as well as margins. Uh is that fair? 14:07 14 minutes, 7 seconds There's always here the everything that you read about which is bold, nighttime store, eat right, those 14:16 14 minutes, 16 seconds are all included in our four food delivery platform financials. Time is a completely 14:23 14 minutes, 23 seconds different business right and it is at a very different stage of testing and evolution that is not in the community 14:30 14 minutes, 30 seconds that that comes under the H3 innovations bucket as you see. 14:36 14 minutes, 36 seconds Okay fair. All right. Uh going ahead h how do we think of of the uh interplay 14:44 14 minutes, 44 seconds between food delivery? U right we've discussed why we needed different apps. 14:50 14 minutes, 50 seconds I think that's fair. Uh but even on food delivery we have 99 and uh store and 14:57 14 minutes, 57 seconds other parts which are creating a different brand identity or different addressing a different customer profile. 15:03 15 minutes, 3 seconds Right. So how how do we think of that uh and are we seeing uh shift of consumers 15:10 15 minutes, 10 seconds from Swiggy to to let me uh please bear with me this is 15:17 15 minutes, 17 seconds going to be a slightly long answer. uh the food delivery is a 10-year-old phenomena right we know the business we 15:25 15 minutes, 25 seconds know the category it caters to x% of India's population is roughly like 10% of India's total population on ever 15:32 15 minutes, 32 seconds transacted basis and the condos of that are more predictable um and and we have to guide two things there one is a 15:39 15 minutes, 39 seconds medium growth of 18 to 20% and a margin of steady state 5%. Now the question is there is a large part of India which has 15:47 15 minutes, 47 seconds never tasted food delivery or does it very infrequently. Now question is what is the right model for us? Uh toy is a 15:56 15 minutes, 56 seconds separate app a separate business at point time. Uh catering to opening up that segment right now early days 3 PMF 16:05 16 minutes, 5 seconds clearly uh we are uh seeing some green shoots of optimism there but it's too 16:12 16 minutes, 12 seconds early to say that this is a definitive model and any any such model also evolve as you go along. Um and I know goodbye 16:20 16 minutes, 20 seconds is seen as a uni dimensional characteristic but if you think of other industries even e-commerce and fitcommerce exists there's some overlap 16:28 16 minutes, 28 seconds of customers but they're legit two separate businesses in their own right so we don't know how it shapes up honestly uh but uh we may be in a better 16:37 16 minutes, 37 seconds position to give that answer in a couple of quarters down the line. 16:43 16 minutes, 43 seconds Okay sure uh that's helpful. Last one small question on commerce. I think we added half a million MTUs despite not 16:51 16 minutes, 51 seconds adding stores. U so uh what would your sort of uh uh view be on what drove this per store MTU edition? 17:02 17 minutes, 2 seconds Uh we don't look at M2 as a per growth per store number. M2 is a is an overall number that significant you know how 17:11 17 minutes, 11 seconds many new customers we are essentially getting and how many uh customers of those are essentially retaining with us. 17:18 17 minutes, 18 seconds Uh so it would be wrong to look at it as a MU or store number you should look at an absolute and percentage on the overall base. Maybe if I just double 17:27 17 minutes, 27 seconds click on this and I think this is an important you know topic that what is your aspiration of store growth etc. If you look at the current coverage that we 17:35 17 minutes, 35 seconds have across the 130 cities that we are operating uh and you know in terms of the last mile uh you know that we operate and the speeds that we operate 17:44 17 minutes, 44 seconds we find ourselves well distributed in these geographies right and we are catering to greater than 90% of the demand. So store addition from here is 17:51 17 minutes, 51 seconds for more densification or a choice that we make when we have to do any geographical expansion. So for now uh you know we want to get the operating 17:59 17 minutes, 59 seconds leverage from I know additional utilization that will come through uh with the growth uh that we have experienced. 18:07 18 minutes, 7 seconds Sure that's very helpful. Thank you. 18:09 18 minutes, 9 seconds I'll come back in the queue for more questions. 18:13 18 minutes, 13 seconds Thank you. Next question is from the line of Adita Sman from CLSA India. Please go ahead. 18:20 18 minutes, 20 seconds Hi uh good evening and thanks for the opportunity. So just two uh two questions. Uh firstly again on uh drawing now from some of the third party 18:29 18 minutes, 29 seconds data we are seeing that the monthly active users are almost uh uh as much as a third of or third of uh the main 18:36 18 minutes, 36 seconds Swiggy app. Uh one uh is is would that data be accurate in terms of the adoption of of toying and and second if 18:45 18 minutes, 45 seconds that's the case uh then uh then would a significant chunk of the losses in platform innovation be from toying at this point? 18:57 18 minutes, 57 seconds here I think we don't measure really around NAU I think for us monthly transacting user is really the northstar that we see and honestly number of 19:05 19 minutes, 5 seconds downloads or number of app opens is just a data point and as Rohit mentioned it's a very early days in journey uh to be 19:13 19 minutes, 13 seconds able to establish any clear metrics there in terms of uh the platform innovation uh you know this was the quarter that we also uh you know shut 19:21 19 minutes, 21 seconds down snack operations the last part of the uh you cost that you're seeing in that P&L is related to the SP operations getting closed. 19:32 19 minutes, 32 seconds No, very clear. Thanks, Raj. And and and then a second question on on the quick commerce side. Uh so right now we are seeing a slowdown in sort of overall 19:40 19 minutes, 40 seconds growth and and I see that you've made that choice between sort of growth and profitability. But but in terms of going forward in in in a view let's say you 19:48 19 minutes, 48 seconds achieve the uh sort of contribution break even then then how do you see the path to accelerating growth? Would that mean that uh you you'd have to be more 19:57 19 minutes, 57 seconds aggressive on pricing again or or do you think the pricing right now in the market is just at an irrational level? 20:04 20 minutes, 4 seconds Uh hi Samir Shar see one thing that we have reiterated again and again uh is that we are not going to take the route 20:11 20 minutes, 11 seconds of buying growth. uh it is something that we had you know committed to uh uh on that essentially a couple of 20:18 20 minutes, 18 seconds quarterback and we'll we'll essentially continue to do that as well. Uh the reason why we we go to CM break even is 20:26 20 minutes, 26 seconds that obviously it makes the P&L healthy it increases our staying power and allows us to invest in the places where it is uh where it all where it is much 20:34 20 minutes, 34 seconds more universally structural. So at any point of time our uh the focus that we have is on to is on to create more such 20:43 20 minutes, 43 seconds kind of you know differentiation and bring opportunities associated with it essentially as well. uh the growth that we will see the one thing that will 20:52 20 minutes, 52 seconds happen after we reach a CM break even is that uh any kind of uh headwind that we had created because we had to reach uh 21:00 21 minutes this CM positive goal will eventually go away and that will unlock uh some more aspect of growth uh which we continue to 21:07 21 minutes, 7 seconds foresee happening from the next quarter or understand and maybe just to follow up on that I mean if so would that then 21:14 21 minutes, 14 seconds again mean that the losses could go up or or that would be like the base level of CM that you'd operate with. 21:22 21 minutes, 22 seconds Is this I mean the question in other words being that is it uh you are you making uh a proof of concept that you 21:30 21 minutes, 30 seconds can reach CM break even or or is this a sustainable level of CM and and uh and then growth uh becomes uh and growth will come with improving CM from there. 21:41 21 minutes, 41 seconds uh see uh the one thing that we have committed is that uh and which we said also is that CM is also an reflection of 21:48 21 minutes, 48 seconds our staying power in this particular business. Uh so the investment that will go and if it is required to go on any area that in fact enhances that that 21:58 21 minutes, 58 seconds staying power. So the commitment that we had in history is that uh if there are avenues of growth that require investment we keep on doing that the any 22:07 22 minutes, 7 seconds avenue of growth that value CM without having any advantage on uh the business that we are building we will not do it. 22:14 22 minutes, 14 seconds So buying growth we will essentially not do which will basically mean that yes we don't see a CM CM dilution happening going forward. 22:23 22 minutes, 23 seconds Thanks Mesh that's very clear. Thanks so much. Thank you. 22:29 22 minutes, 29 seconds Next question is from the line of Ankor Rudra from JP Morgan. Please go ahead. 22:35 22 minutes, 35 seconds Thank you. Uh you know not just the accusation on food. I want to start there. You know, thanks for the comments on Toy. I wanted to understand in the 22:43 22 minutes, 43 seconds medium term, are you not potentially cannibalizing the main opportunity for this will be the parent food app as so 22:51 22 minutes, 51 seconds far it doesn't seem like you're adding new menus and new restaurants? You're just potentially reducing your fees or platform fees there. 23:01 23 minutes, 1 second Uh hi Asha here. uh as loud has already mentioned it's still too early to figure 23:08 23 minutes, 8 seconds out what is going to happen when will it happen etc. I do think that it's also important because we're not the only players. There are folks who are also 23:16 23 minutes, 16 seconds attempting what this business model can unlock as challenges outside the category. Uh I think just by being able 23:24 23 minutes, 24 seconds to do it early, we also probably have an opportunity of understanding uh what goes on. But I think it's too early to comment on what happens in the medium 23:32 23 minutes, 32 seconds term. Of course the idea is that we progress and pull forward only if it feels like uh something that unlocks incremental growth. 23:42 23 minutes, 42 seconds I think just to add one thing to what Nasha said is if you look at and what the proposition is it is intended to 23:51 23 minutes, 51 seconds open up a set of users who are best case infrequent on the food delivery system I'm interested in. 24:00 24 minutes Right? So hopefully along with cancellation if if this plays out we should also see a very new set of users 24:08 24 minutes, 8 seconds adopt food delivery because of the proposition different so I mean I understand it's very early 24:17 24 minutes, 17 seconds but you're not seeing any signs of down training from CV to point 24:29 24 minutes, 29 seconds okay so moving to uh the quick commerce side How do we double click on the medium-term targets a bit? Uh you know we said about talked about five times 24:36 24 minutes, 36 seconds like you know we uh and 5% kind of margin now which probably is like 50 to 70% or if as you look at this on a three 24:45 24 minutes, 45 seconds to four year basis is that number one fair to expect and two what needs to happen to industry structure for this to be possible? 24:53 24 minutes, 53 seconds Yeah. Hi. Uh so as you rightly you know said we are talking of the medium term here and uh if you think of medium-term 25:00 25 minutes between say 3 to 6 years uh and depending on how the category growth you know pans out how the penetration pans 25:07 25 minutes, 7 seconds out how much of uh say uh new users and new frequencies does the category get to and again the number of players that are 25:16 25 minutes, 16 seconds you know participating. I think a lot of this is therefore not something which is clearly you know uh which we can project from the data available today. 25:26 25 minutes, 26 seconds However, the the journey is very clear right that we have achieved a certain scale and a certain profitability in 25:33 25 minutes, 33 seconds this business and any growth from here on out is going to be good growth right because it's going to add to the contribution pool and to the profitability journey. 25:42 25 minutes, 42 seconds So very hard to ever put a timeline to it. But as I said, anywhere between 35 to 50% can get you to the same place in between three and a half to five years. 25:53 25 minutes, 53 seconds Got it. But thank you for the timeline. 25:55 25 minutes, 55 seconds If I could add one quick follow up to this in the more near term given competitive activism continues to go up, 26:02 26 minutes, 2 seconds are you happy to give up market share persistently in the search of profitability? 26:09 26 minutes, 9 seconds Uh hi Hasha here. I don't think you've said anything about being comfortable giving up market share. I think we have to keep making choices between growth 26:16 26 minutes, 16 seconds and profitability to get closer to the aspirations that we've talked about. If fighting for short-term relevance and 26:23 26 minutes, 23 seconds going after spending in places that will hurt us later, I think that will compromise our long-term relevance. So, honestly, uh it is a balanced act, but I 26:32 26 minutes, 32 seconds don't think there is any commitment to go and lose market share. I think it's important to build a more durable 26:39 26 minutes, 39 seconds business. But as we've mentioned, even more growth will come from executing on the clarity on positioning that we've been talking about. There was a question 26:48 26 minutes, 48 seconds even on market structure. Honestly, we do not know yet how many players will be uh on the other side of all of this spending and overall category growth. 26:58 26 minutes, 58 seconds But if anything, we've learned from multiple categories like modern trade or telecom etc. I think whoever got clarity earlier um is the one that is still 27:07 27 minutes, 7 seconds standing today. So we just want to be clear about what our price is and keep making sure that the strategy speaks to 27:15 27 minutes, 15 seconds that medium-term price. Um sometimes it may have to be these painful calls but our intention fully and um as Amites 27:23 27 minutes, 23 seconds also talked about hopefully with the contribution behind us and some parts of the proposition coming together we want to get back on uh the growth engine and 27:31 27 minutes, 31 seconds start making investment calls accordingly. 27:37 27 minutes, 37 seconds Thank you for the Thank you. Next question is from the line of Sachin from Bank of America. 27:46 27 minutes, 46 seconds Please go ahead. 27:49 27 minutes, 49 seconds All right. Thank you for the opportunity. I had a couple of follow-up questions which are remaining. So just uh you know following up on that. Uh number one Rahul you did mention about uh focusing and targeting good growth. 28:00 28 minutes One of your peer is talking about more like a 60% uh in a week for 3 years. Uh and did mention in the last question 28:09 28 minutes, 9 seconds answer you know it's also about maintaining market share and not giving market share. So is that fair to assume that kind of a growth we could also 28:17 28 minutes, 17 seconds expect from Swiggy while the focus towards profitability sort of you know continues 28:29 28 minutes, 29 seconds sorry I'm not able to hear you may I ask you to repeat your answer once again I think there is a thing about short-term 28:37 28 minutes, 37 seconds market share and long-term market share even if you look at the category around today Sachin there's a player who's probably at four 5% of contribution. We 28:45 28 minutes, 45 seconds have our own guidance of getting closer to um zero as we've talked about. There are a bunch of players in the minus 10 minus 15. So maybe only talking about 28:54 28 minutes, 54 seconds market share in the next quarter probably takes away from what's going to play out over the next few years. Our we don't have like some stated desire to 29:02 29 minutes, 2 seconds lose market share. We believe that our chances to improve long-term market share come from purposefully balancing this path between goals and 29:11 29 minutes, 11 seconds profitability. Of course, crossing a big uh side of the fence of the CM0 allows us to see growth as profitability and we 29:19 29 minutes, 19 seconds hope that that coupled with the proposition coupled with everything we've learned over the last two three quarters gives us a fighting edge again as we invest for profitable growth. 29:32 29 minutes, 32 seconds Got it. Um and uh lastly you know I mean uh there has been a good amount of uh uh again uh expansion which is done by some 29:40 29 minutes, 40 seconds of your other peers also when you think about expanding into let's say eventually tier 2 tier three cities. Uh what are your thoughts on those lines? 29:50 29 minutes, 50 seconds Yeah. So uh see the the reason that we'll expand uh to T26 is one as we said that if uh there is a need for 29:59 29 minutes, 59 seconds essentially densification because we are essentially getting that many orders we will actually do that. Uh the second will be that uh yes there are uh 30:07 30 minutes, 7 seconds something that we do even uh right now even in the last two two portals as well. We look at cities that are more 30:14 30 minutes, 14 seconds likely to make an impact on on uh based on the kind of consumer base that we we essentially have. That level of expansion will essentially happen though 30:23 30 minutes, 23 seconds it will be smaller based on the the number that we have. The third level expansion that we see is expansion expanding in existing cities where we 30:32 30 minutes, 32 seconds would have left out some of the the other areas. But the way to think about it is in the current network that we have there is a headroom for orders 30:41 30 minutes, 41 seconds which is good enough to sustain us for the next few quarter. Expansion will be more a need because we are already 30:48 30 minutes, 48 seconds crossing those limits in only certain geographies and which is the way that we'll move forward as well. 30:55 30 minutes, 55 seconds Got it. Thank you. Thank you. 31:01 31 minutes, 1 second Next question is from the line of Goro Malotra from Access Capital. Please go ahead. Yeah. Hi. Uh thanks for the opportunity. 31:08 31 minutes, 8 seconds Just a couple of questions you know on on this uh uh in the shareholder letter and I think so this question was raised earlier as well. You have mentioned that 31:17 31 minutes, 17 seconds you know as you sort of will achieve contribution margin break even right you will possibly look to you know 31:26 31 minutes, 26 seconds accelerate growth. So does that mean that uh essentially you know the contribution margin in break even becomes like the floor and anything 31:35 31 minutes, 35 seconds extra you sort of gain from there will be then reinvested back into the business uh at least in the medium term. 31:41 31 minutes, 41 seconds Is is that understanding correct? You see even last time when we were speaking about how where we will invest and where we will not. We have always maintained 31:50 31 minutes, 50 seconds that in the area uh that we believe investment is right we will keep on investing and in the area where we believe that it is buying growth we will 31:58 31 minutes, 58 seconds essentially not be doing it. Medium-term we will keep it you know very very calibrated. Uh things that are essentially working out we will 32:06 32 minutes, 6 seconds essentially go behind it as well. Uh so yes if things are are working out there is not a need for us to necessarily 32:14 32 minutes, 14 seconds reinvest contribution marketing gains you know going forward uh but if we believe that there are areas where it will make sense to invest we will 32:21 32 minutes, 21 seconds essentially keep on doing that. So it's hard for me to give a guidance but the flow information remains true. Uh and we 32:28 32 minutes, 28 seconds will and uh that means that yes if there are areas where uh the growth is happening without uh without specific 32:35 32 minutes, 35 seconds investment needed we will be on that path and we'll also increase our contribution. 32:40 32 minutes, 40 seconds Understood. Just some followup. So, so what you understand that you know it's it's pretty competitive and you don't want to chase a bike road but you know 32:49 32 minutes, 49 seconds given that there are multiple players some of them some of them are larger who are quite aggressive there are some newer guys who are becoming more 32:57 32 minutes, 57 seconds aggressive in that regard if you were to sort of uh sort of seed some market share and for hypothetically if this 33:06 33 minutes, 6 seconds competitive intensity sort of remains for another 3 six 9 months isn't there a risk that some of your users who are 33:13 33 minutes, 13 seconds sort of maybe experimenting there to other platforms will basically then permanently shift and hence to regain 33:22 33 minutes, 22 seconds them will become more expensive uh later on. 33:27 33 minutes, 27 seconds uh ultimately as we've talked about I think the biggest thing for us to be solved is the proposition that is the only structural way to keep users 33:35 33 minutes, 35 seconds engaged in sticky otherwise we will have to go up now and again there are as you mentioned there are multiple players in 33:42 33 minutes, 42 seconds the category and uh it is not clear when anyone will make a choice saying I'm not going to play this anymore so we want to 33:50 33 minutes, 50 seconds start building uh already with the character some of them may also just be forever value focused players So to play that game that we don't have 33:58 33 minutes, 58 seconds any right to win this does not strike us as um root. If we were indeed like a value focused platform then we would say 34:06 34 minutes, 6 seconds okay let's embrace this and go and try to win um in this specific part of the market but uh if that is not our 34:13 34 minutes, 13 seconds straight strategy then I don't think we can go and win um that much for us we are very certain that working on a 34:21 34 minutes, 21 seconds proposition is the only durable answer for uh long-term growth understood just one quick question so 34:29 34 minutes, 29 seconds there was a uh improvement in nov to gov in quick comments this quarter. How much was this related to you sort of reducing 34:37 34 minutes, 37 seconds your discounting and how much was it just from mix because of uh seasonality? 34:43 34 minutes, 43 seconds Yeah. So uh one of the you know factors was that we stopped the no experiment uh sometime around the third week of January. So uh that gain came through. 34:53 34 minutes, 53 seconds So roughly I know half of the gain came through because we stopped the noi experiment. The other one is more structural where we've been able to uh 35:01 35 minutes, 1 second you know offer lesser incentives to our customers uh and still you know uh on a sequential you know basis grow faster. 35:09 35 minutes, 9 seconds Understood. Thank you. Thank you. 35:16 35 minutes, 16 seconds Next question is from the line of Abishek Banerjee from ICICI securities. Please go ahead. Yeah. Uh thank you for the opportunity. 35:24 35 minutes, 24 seconds Uh couple of quick questions for me. 35:26 35 minutes, 26 seconds First one is uh we had uh the uh you know we had a guidance that we'll uh break at the AITA level uh in four 35:34 35 minutes, 34 seconds quarters from contribution people. So is that uh does that still hold? Uh and uh 35:41 35 minutes, 41 seconds one more thing is uh in in this quarter uh you have spoken about you know the contribution margin for the month of 35:48 35 minutes, 48 seconds March. Now when we say contribution break from third quarter right? 35:55 35 minutes, 55 seconds So on the first question abishek I think we have you know carefully decided not to you know speculate on when aida profitability will come through as we 36:03 36 minutes, 3 seconds have rightly said that having achieved the stage that we have is also good to harness know a larger share of the growth that is going to come through and 36:11 36 minutes, 11 seconds again what is the right kind of growth right and that's where we will continue to invest in so I think aida you know profitability will be a choice that will 36:19 36 minutes, 19 seconds be made at a later point in time and again depending on how the market forces play out on the Second question. Yes, you're right. This is for the entire quarter and not just on an exit basis. 36:30 36 minutes, 30 seconds Okay. I'm just trying to understand one thing. So, uh given you will be contribution break even uh beyond that 36:37 36 minutes, 37 seconds at the you know the the uh then nondirect expenses things like you know new user acquisition costs etc. How 36:45 36 minutes, 45 seconds should one model that in going forward especially given we have not really seen an MTU acceleration uh uh to the level that you know one 36:54 36 minutes, 54 seconds would have kind of hoped for elevated levels of uh uh customer acquisitions. 37:01 37 minutes, 1 second Yeah the uh our uh I mean I'm slightly not sure where the question was so I'll try to answer in the best way that I 37:10 37 minutes, 10 seconds understood. uh the new user acquisition is uh is something that we will we will continue to do. It's a part of our of 37:18 37 minutes, 18 seconds our growth engine and obviously one of the more important aspect that we look at and something that you will see coming from us going forward as well is 37:25 37 minutes, 25 seconds the is the retention of that particular user base as well. Uh so yes the uh the MTU growth a big chunk of that will come 37:32 37 minutes, 32 seconds from the new user that we acquire and we retain. Uh as I had said there's a chunk of users that also go out of the platform. uh part of that is because of 37:41 37 minutes, 41 seconds competitive intensity uh and those those users typically have lower frequency and lower UV as well and it is something 37:49 37 minutes, 49 seconds that we are also comfortable with because we want to retain more more early consumers who are more long-term on the platform as well. 37:58 37 minutes, 58 seconds Understood. That's okay. Thanks. 38:00 38 minutes That's the question. That was not the question. 38:03 38 minutes, 3 seconds No. So, uh, so I was trying to understand whether uh the overall uh you know customer acquisition spends will uh 38:11 38 minutes, 11 seconds uh re remain at this level also. But I I kind of understand that you know the MTO numbers that you are talking about is is not uh the gross addition. It's rather 38:20 38 minutes, 20 seconds the net MTU addition. uh and probably churn rates are slightly higher but if you can guide on the overall uh you know 38:28 38 minutes, 28 seconds expenses also that will be helpful we won't be able to guide on the gross versus net uh uh the I mean uh the 38:36 38 minutes, 36 seconds number that we have uh is net of both acquisition as well as uh as retention uh uh the commitment that we have is 38:45 38 minutes, 45 seconds that yes it's a growth industry we will continue to invest on acquiring new consumer base we will continue to make sure that the efficiency of this 38:52 38 minutes, 52 seconds acquisition is also better. Uh the more and more our our proposition lands, we believe those acquisition numbers will go up. We are already seeing that happen 39:01 39 minutes, 1 second even right now. Uh you would see that uh in the kind of investment we are making and the growth that we are seeing. We 39:07 39 minutes, 7 seconds believe that that specific trajectory of higher or acquisition going on at the level that we want uh with a with a 39:16 39 minutes, 16 seconds spend that is more efficient will continue to happen. Okay. Thanks. 39:23 39 minutes, 23 seconds Thank you. 39:25 39 minutes, 25 seconds Next question is from the line of Vive Meshwari from Jeff India. Please go ahead. Hi, good evening. Uh a few questions. 39:33 39 minutes, 33 seconds First on the food delivery side uh you know this recent uh increase uh in commercial gas prices. Do you think 39:40 39 minutes, 40 seconds there could be some impact on uh volumes uh in the near term because of this issue for aggregator? 39:53 39 minutes, 53 seconds Yeah. So uh look I think the LPG crisis started sometime in first 40:01 40 minutes, 1 second week uh of March right and there was an impact on the restaurant industry as we reported in the media in terms of 40:10 40 minutes, 10 seconds availability of uh you know cylinder etc. 40:14 40 minutes, 14 seconds two things. One, we've seen a slight bit of price increase because of that which the restaurant industry has taken. You can see that on our platform which is 40:22 40 minutes, 22 seconds not um significant and it's less than 0.5%. Uh so that was that did probably 40:28 40 minutes, 28 seconds offset some bit of the cost pressure from our standpoint. I think we were 40:34 40 minutes, 34 seconds able to uh navigate this through through support to restaurants in terms of increased analytics, increased uh 40:43 40 minutes, 43 seconds ability for them to you know uh just uh spread out the demand and also I think we our supply considerations the consumers were able to access access 40:52 40 minutes, 52 seconds lookalike restaurants right so both in terms of u you know the growth as well as the profitability side we were able 41:00 41 minutes to navigate this in the month of March And since then the situation has continued to ease out as two things have happened. Stopping their supply has 41:08 41 minutes, 8 seconds become better and B uh the restaurant industry is also like all international do quite quickly pivoted to finding 41:17 41 minutes, 17 seconds alternates whether it's electrification whether it is alternate sources of supply as well as you know just the supply situation stabilizing itself uh somewhat. 41:29 41 minutes, 29 seconds Okay, got it. Thank you for that. Uh moving to quickcommerce uh one thing R that you mentioned about the NOV gov uh 41:37 41 minutes, 37 seconds bit you know and what has contributed to that increase in NOV but you know when I look at your take rate as a percentage of NOV that number is flat on a quarton 41:45 41 minutes, 45 seconds quarter basis why would that be the case uh and sorry if it's a nice question no it's a 50 basis points pick up if you 41:52 41 minutes, 52 seconds look at our take rate no that's on uh go but when I look at it on nov basis that number is flat 42:01 42 minutes, 1 second it has I think 90.2% into right so as I said there's obviously you know things that we do on the consumer 42:10 42 minutes, 10 seconds side and then things that we do on the merchant side which uh you know is a combination of the take rate so a large part of this increase is uh you know has 42:18 42 minutes, 18 seconds been on the consumer side because we have as platform given lesser incentives we have also started to monetize on the 42:25 42 minutes, 25 seconds delivery fee side uh so these are the things that have you know impacted the uh NOVG and it's it's a structural move 42:32 42 minutes, 32 seconds for us uh because uh as we had said we do not we are not participating some of the lower you know EOB orders and the consumers who are you know generally 42:41 42 minutes, 41 seconds attach themselves to uh lower basket sizes. So that's a choice that we have made and as we have also written uh we 42:48 42 minutes, 48 seconds have halfed the mix of these low EOB orders over the last year which has also helped in the overall you know uh ratio increase. 42:59 42 minutes, 59 seconds I see. Got it. And lastly uh you know while you know we have discussed quite a bit on the contribution margin but when 43:06 43 minutes, 6 seconds we look at overheads in you know QC business uh those are running at about 7 10 75 crores at least for the last two 43:13 43 minutes, 13 seconds quarters now from here to let's say a journey to break even whenever that happens what will be the driver for this it's essentially going to be it should 43:22 43 minutes, 22 seconds ideally be a mix of like you know higher take rate operating leverage and maybe if there is some inefficiency line item 43:29 43 minutes, 29 seconds or anything that you can do you know uh can can optimize on but this 700 cr plus number is still very very high right that will still translate into 2800 43:38 43 minutes, 38 seconds crores of fularida loss how do you think about the journey to break even uh in the next few years or whenever 43:47 43 minutes, 47 seconds yeah while the absolute number is you know at around the 700 crores report uh you know a large part of this is marketing 43:55 43 minutes, 55 seconds spending and uh as you are aware today we are seeing heightened levels of spending across you know various platforms which 44:02 44 minutes, 2 seconds has meant that there is certain amount of inflation on the customer acquisition cost. Now we do expect uh and we have seen this even in the food delivery 44:11 44 minutes, 11 seconds business when the market structure matures uh we see significant operating leverage coming out of some of these spending where as platforms we actually 44:18 44 minutes, 18 seconds you know have reduced our absolute spending while continuing to you know get uh you know user penetration. So it's going to be a combination of scale 44:26 44 minutes, 26 seconds as well as you know efficiencies getting unlocked on the marketing you know spending side but you know Rahul that's was you know 44:35 44 minutes, 35 seconds in the context of the two new competitors who have or the the horizontals who have come into the space this this you know the the marketing 44:43 44 minutes, 43 seconds spends could we could be here for longer period right is that a fair understanding which means that this overhead line may take quite some time 44:50 44 minutes, 50 seconds before uh starting to drift down it's going to be extremely hard to guesstimate on that you know where does 44:58 44 minutes, 58 seconds the market structure you know evolve how much you know competitive does it get before it settles down I think uh we have the levers to continue to extract 45:06 45 minutes, 6 seconds efficiencies on the other lines and not just the marketing line so you will see you know continuous operating leverage now that you know any growth is going to 45:14 45 minutes, 14 seconds you know deliver contribution you know dollars to the P&L understood thank you and wishing you and 45:21 45 minutes, 21 seconds your team all the Thank you. Next question is from the land of God of Retaria from Morgan Stanley. Please go ahead. 45:33 45 minutes, 33 seconds Hi, thank you for taking my question. Uh my first question is on understanding the trends around the retention ratio in the quickcommerce business for your uh 45:42 45 minutes, 42 seconds MTUs. Uh at the peak we were adding 3 million consumers a quarter. Right now we are adding half a million and our 45:49 45 minutes, 49 seconds marketing spend largely would have remained intact. So it appears that the growth adides would have remained largely same and the retention ratio would have come down for existing user. 46:00 46 minutes Is there any metric to give get a comfort on how the retention ratio has changed in the last couple of quarters? 46:06 46 minutes, 6 seconds Any repeat uh business percentage now about a year back. 46:11 46 minutes, 11 seconds Hi. So uh see the one of the things that we have decided to do is really churn out some of these no AOV customers who have alternative platform choices today 46:20 46 minutes, 20 seconds which are getting you know from whom they're getting serviced. So there's an active churn that we are you know seeing in that segment of the users at the same 46:28 46 minutes, 28 seconds time the cohorts that we care about which are the high spenders higher frequency ones those continuously you know are being in uptick. So 46:36 46 minutes, 36 seconds periodically we will share I think couple of quarters back we had shared the GOV retention for these acquired users and you know we will share that 46:44 46 minutes, 44 seconds periodically going forward but a large part of that you know user growth uh you know reduction that you have seen is the user that we have deliberately churned out from the platform. 46:55 46 minutes, 55 seconds Okay fair enough. My second question is for the NOV growth. If you look at this year was uh very heavy lifting was done 47:03 47 minutes, 3 seconds uh from the uh AOV uh with all the initiatives that you took place and uh maybe now price and therefore next year 47:12 47 minutes, 12 seconds growth uh would be driven more from an order uh growth perspective right and the current uh comparative market uh 47:21 47 minutes, 21 seconds whatever we seeing in the order growth in the last two quarters uh as an example on a uh would kind 47:29 47 minutes, 29 seconds see a right reflection of the growth in the coming quarter as well. Right. So is it fair to say that uh from a next year 47:37 47 minutes, 37 seconds growth perspective keeping where our CM targets are in mind uh the order growth will be a right reflection AOVs are have 47:45 47 minutes, 45 seconds largely normalized and you know the current level of growth that we are seeing is a right reflection of the growth. 47:55 47 minutes, 55 seconds Hi Asha here. uh I wouldn't dig too much into OPD growth in the last year and therefore extrapolating it into the next 48:03 48 minutes, 3 seconds year. Um as we've talked about in the letter as well this year is an unusual one. There are six players, seven players on the annual and we've faced 48:10 48 minutes, 10 seconds the most in contribution over the last four five quarters. Um the overall climb from here is going to be a different 48:18 48 minutes, 18 seconds climb from what we have gone through in the last four quarters. So I mean there are so many things that are changing 48:24 48 minutes, 24 seconds that I don't think there's much value to be gotten by looking at what happened in the last three four quarters because the context is very different. 48:36 48 minutes, 36 seconds Okay. I I was just trying to figure out for next year but I I understand that you will not give forwardlooking statement. So I was just trying to 48:44 48 minutes, 44 seconds understand the mix or the qualitative aspects of it but uh fair enough. My last question is on the uh the steady state margin that you talked about in 48:52 48 minutes, 52 seconds commerce uh on a medium-term basis and uh you also shared very interesting data on the utilization of the stores uh at 49:00 49 minutes 40% kind of number. So what's the right utilization rate required for you to get to that uh hit the steady state margin? 49:08 49 minutes, 8 seconds Uh no it's a function of you know of the maturity of the stores right. So for example whenever a store hits close to 80 to 85% capacity we you know end up 49:17 49 minutes, 17 seconds densifying that particular area and we open another store there. So uh depending on when we achieve those scale 49:25 49 minutes, 25 seconds and what is the utilization of those respective stores I think the store additions will continue bases that you know utilization which typically you know happens at around 80 to 90%. 49:36 49 minutes, 36 seconds Okay. Thank you. Thank you. 49:42 49 minutes, 42 seconds Next question is from the line of Ashwan Meta from Ambit Capital. Please go ahead. 49:47 49 minutes, 47 seconds Yeah. Hi, thanks for the opportunity. Uh so the first question is uh we talked about break even uh next quarter which 49:54 49 minutes, 54 seconds is a swing of almost 180 dips uh in terms of your CM. Now that's higher than what we've done over the last eight 50:01 50 minutes, 1 second quarters. Uh so what are the big drivers for a for a massive swing? Uh would it be discount reduction? Are there other 50:10 50 minutes, 10 seconds factors which are at play as we have called out in the letter? So while 180 basis points was the average 50:19 50 minutes, 19 seconds for the quarter we exited the month of March with 110 basis point and uh this was as we had mentioned there were certain experiments that we were running 50:27 50 minutes, 27 seconds on the monetization side that we have reversed and therefore on an exit basis we got a better pick up. So the journey 50:34 50 minutes, 34 seconds itself is more like 100 basis points versus 180 basis points and now that April is behind us we are pretty 50:41 50 minutes, 41 seconds confident of being able to achieve that and therefore sure yeah 50:50 50 minutes, 50 seconds I think I think there is monetization there's advertising there's operating leverage uh you've seen sequential volume growth you know continuing to 50:57 50 minutes, 57 seconds pick up so these are the levers that are think and Rahul uh we saw uh at at an entity 51:06 51 minutes, 6 seconds level advertising promotions fall by almost 8% quentially uh now our uh say fixed cost in the QC business have not 51:14 51 minutes, 14 seconds fallen so is it some other business where there has been rationalization or is it uh is it something else 51:22 51 minutes, 22 seconds no I think so we don't share specifically this number across the business units but as I generationally mentioned to you there are categories that are at a mature stage which require 51:30 51 minutes, 30 seconds you know which give us more operating leverage which address on that pending. 51:36 51 minutes, 36 seconds Uh and the last question is in terms of uh capex. So so we didn't see much of a dark store edition or our area uh of the 51:44 51 minutes, 44 seconds dark store has also got gone up materially but the capeex is at around 195 cr more or less similar over the last two quarters. Uh so what are the areas where this capeex is going? 51:57 51 minutes, 57 seconds So largely on the warehousing investment. So as we have you know overall increased you know the geographical footprint there are these 52:06 52 minutes, 6 seconds tier 2 markets where we see the need to open warehousing which helps us in also reducing our middle mile as well as you 52:12 52 minutes, 12 seconds know availing serviceability to those cities. So most of these investments have been made in the warehousing you know part of the business which again 52:21 52 minutes, 21 seconds gives us structural capability to continue you know uh growing uh for the future. So uh so that's you know a lot 52:29 52 minutes, 29 seconds of that expansionary phase is now behind us. So as you also mentioned that we expect the capex numbers to significantly come down for the last couple of years running. 52:39 52 minutes, 39 seconds Okay. Okay. And just one small question if I can squeeze in what is our non-g share in the QC side. I think we used to disclose that earlier. 52:48 52 minutes, 48 seconds So yeah so we will continue to periodically disclose that. uh so we hit the early 30s and as you have you know seen about that we expect this number to be somewhere in the range of 30 to 40%. 53:00 53 minutes Because beyond that we still want to regain uh the uh the benefits of you know being on a high frequency platform. 53:08 53 minutes, 8 seconds So uh those are the numbers that we about 30%. 53:12 53 minutes, 12 seconds Okay. Uh fair enough. Thanks a lot and all the best. Thank you. 53:21 53 minutes, 21 seconds Next question is from the line of Pratik Meshwari from HSBC securities. Please go ahead. 53:27 53 minutes, 27 seconds Hi, thank you for the opportunity. Uh my question was more on the quick commerce victim guidance. So as you said the 53:35 53 minutes, 35 seconds guidance is for one lakh cr in probably 3 to six years. I was just looking at I I actually wanted to 53:43 53 minutes, 43 seconds understand the drivers in terms of the NOV user data and frequency. Right. So frequency for sure has fallen for you 53:51 53 minutes, 51 seconds guys to 2.8 times versus what you guys were doing probably it was 30% higher. 53:57 53 minutes, 57 seconds But let's say if I even think about 3.5 3.6 six times the number of users that you would need at the current state of 54:04 54 minutes, 4 seconds NOV would be somewhere between 45 to 50 million right and if if we look at the largest player in the market uh their 54:14 54 minutes, 14 seconds their guidance is also to reach in a way if you convert their guidance their their guidance is also to reach in similar size of the user base right so 54:22 54 minutes, 22 seconds so two questions here one is this is what you want to apply for the positioning uh related to the player And 54:31 54 minutes, 31 seconds also also how would this would based on the user additions of half a million or a million right this would take really 54:39 54 minutes, 39 seconds long time right considering even if the industry consoles from 7 to 3 years. So just wanted to understand from you on 54:46 54 minutes, 46 seconds this point. Hi. Uh um see one of the uh ways to think about growth is exactly in the terms uh which you spoke about how 54:55 54 minutes, 55 seconds many how many users we add uh how do the uh how many times definitely transact and you know what was the the NOV of 55:04 55 minutes, 4 seconds those of those users. Uh we believe that the movement will happen obviously you know one part on the frequency as well. 55:10 55 minutes, 10 seconds If you don't believe the frequency that we are in right now is the right frequency to do uh essentially medium-term planning that frequency will 55:18 55 minutes, 18 seconds essentially mean that uh then there is a movement that we expect to happen on on as well that will also drive some part of that particular growth but as you 55:27 55 minutes, 27 seconds rightly mentioned the the uh the majority of that number will eventually come from the uh uh the acquired 55:34 55 minutes, 34 seconds acquired customer that we now uh we spoke about this number and I think one of the other callers spoke about the the 55:41 55 minutes, 41 seconds net worth versus gross. The headwind that we have on our MT growth now is is right now specifically related to removal of the consumer base that 55:50 55 minutes, 50 seconds transact very infrequently with our platform. Uh you will see that movement happen in uh when that particular 55:57 55 minutes, 57 seconds consumer base will be low enough. Uh where our acquisition will allow for overall you know number to be officially driven up as well. uh we believe that 56:06 56 minutes, 6 seconds churn will be uh will be another two quarters and after that you will see a healthy movement on our interview numbers 56:14 56 minutes, 14 seconds I have a follow up on this so so still it seems the acceleration required is quite steep right and you said that probably you guys after the break even 56:23 56 minutes, 23 seconds target you'll try to like you try to do activities around it right so just wanted to understand did the guidance 56:31 56 minutes, 31 seconds tie you guys into anything uh of such sort right uh because it seems that organically you should still be trying 56:38 56 minutes, 38 seconds to put a very strong because this the target is very high like 45 million users. So just want to understand that. 56:45 56 minutes, 45 seconds Second thing just wanted to understand since you guys have given the dark store uh top designer dark stores in every geography has reached 3 to 5% of 56:54 56 minutes, 54 seconds contribution margins. So just and had reached about break even aida margins uh at 4% contribution margin. So have you 57:02 57 minutes, 2 seconds guys are you very comfortable on those dark stores and even in your top city. 57:07 57 minutes, 7 seconds So those two questions if you can expand on absolutely right. So our top city for example is already operating at 3% you 57:14 57 minutes, 14 seconds know positive CM and uh you know at the city level it's already you know breaking even on a repaired level and one question on the MTU I think uh 57:23 57 minutes, 23 seconds as I had you know called out this is a net addition that you have seen which has been also driven partly by some of the uh you know uh changes that we have 57:32 57 minutes, 32 seconds done to our proposition around these lower AOE users. So I think we will continue to you know be relevant and as 57:40 57 minutes, 40 seconds we've discussed right the differentiation that we are creating on the platform will attract a certain set of users and user growth and uh it is 57:48 57 minutes, 48 seconds important I think both frequency uh AOV as well as the MDU is going to be an important you know criteria in our 57:54 57 minutes, 54 seconds overall growth journey. So very hard to you know use specific numbers right now but directionally we do want to continue 58:02 58 minutes, 2 seconds to acquire a lot more users than they can reach. Okay. Thank you so much for the answers. 58:11 58 minutes, 11 seconds Thank you ladies and gentlemen. We'll take the last question from the line of Adita Sesh from Mcquary Group. Please go ahead. 58:19 58 minutes, 19 seconds Yeah thank you for the opportunity. Uh just one question. If I look at a cash flow statement um despite the improvement in margin and delivery uh 58:27 58 minutes, 27 seconds reduction loss in quickcommerce the the absolute kind of negative number in cash from operations remains elevated uh free cash from analyze is about say negative. 58:37 58 minutes, 37 seconds So I just wanted your thoughts on that scale of loss. Thank you. Yeah. So there are a couple of things. 58:43 58 minutes, 43 seconds One is on on capex. We have already said that we have seen heightened levels of investment over the you know last four to eight quarters which we start to 58:51 58 minutes, 51 seconds moderate as we h we are behind on the overall say warehousing uh you know investment that we have done. Uh some of the working capital changes are 58:59 58 minutes, 59 seconds technical and you should expect us to you know sequentially improve that uh in the coming year. 59:08 59 minutes, 8 seconds Thank you. 59:10 59 minutes, 10 seconds Thank you very much ladies and gentlemen. 59:16 59 minutes, 16 seconds We'll take that as the last question. On behalf of Swiggy Limited, that concludes this conference. Thank you for joining us and you may now disconnect your lines. Thank you.