Urban Company Q1 results: Loss narrows by 70%, revenue at Rs 827 cr
(Photo: Urban Company Twitter)
In FY24, home-services firm Urban Company continued to demonstrate profitable growth, with consolidated net revenues growing by 30 per cent to reach Rs 827 crore.
Urban Company has reported a narrowing of its consolidated loss to Rs 93 crore in FY24. This is a 70 per cent decline in its losses from Rs 312 crore in FY23. It has posted its first-ever operational profit in the June 2024 quarter.
The company said the growth was achieved on the back of investments in service quality, partner training and enablement, technology development, and the launch of Native RO water purifier devices.
“We also made meaningful progress towards improving profitability driven by operational leverage and driving efficiency across cost lines,” said the company. “We made a strong start to FY25 with our consolidated net revenue growth for Q1 FY25 at 37.3 per cent year-on-year (unaudited). We achieved profit before tax (PBT) profitability in the quarter with consolidated PBT margin as a percentage of net revenue at 4.3 per cent. The India business also achieved healthy PBT margins with PBT margin at 12.0 per cent,” said the firm.
The company said it continues to invest in improving consumer experience, building new categories, and driving efficiencies across its India and international businesses. “Our strong unit economics and cost excellence will help drive operating leverage as the business scales,” said the company.
In October 2023, Urban Company entered the water purifier industry with the launch of Native. It is capable of giving an output of 12,000 litres of pure water without requiring a filter change.
Last year, it introduced a bathroom cleaning subscription, an affordable solution that offers four meticulous cleaning sessions in a month for each bathroom. It also forayed into wall panel solutions, an extension of its home decor vertical that includes painting services. Since the launch of the wall panels service, the firm has installed over 1 lakh panels.
According to Urban Company’s latest Earnings Index, the average monthly net earnings of service partners delivering over 30 services in a month was Rs 33,469. Further, the average monthly earnings of the top 20 per cent of Urban Company service partners is Rs 42,792, net of all commissions, fees, travel, and product costs. This data was audited by an independent and reputed audit firm — JC Bhalla & Company.
An analysis of the hourly earnings of the service partners for H2 CY23 showed that female partners earn 23 per cent per hour more than their male counterparts on the platform. The average hourly earnings of female partners, net of all commissions, fees, travel, and product costs, is Rs 363, while the same for male partners is Rs 294.
In FY24, over 1,800 service partners benefitted from various insurance covers. There were claims disbursal of over Rs 6.29 crore in FY24.
The firm also disbursed Rs 37.2 crore worth of loans, including personal loans and service kit loans, to Urban Company service partners via third-party non-banking financial corporations (NBFCs) in FY24.
First Published: Jul 24 2024 | 5:27 PM IST