 "Urban Company Q1 results: Loss narrows by 70%, revenue at Rs 827 cr")
Home-services firm Urban Company trimmed its losses in FY24 by 70 per cent, while continuing an upward trend and posting its first-ever operational profit in Q1FY25, registering 37.3 per cent consolidated net revenue growth Y-o-Y during the period.
The firm reported narrowing of its consolidated loss to Rs 93 crore in FY24 from Rs 312 crore in FY23. The consolidated net revenues grew by 30 per cent to reach Rs 827 crore in FY24.
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,” the company said.
“We made a strong start to FY25 with our consolidated net revenue growth for Q1 FY25 at 37.3 per cent Y-o-Y (unaudited). We achieved PBT (profit before tax) 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. According to the company’s latest Earnings Index, 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 disbursement 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.
In FY24, the company trained and upskilled 35,000 partners. It invested Rs 138 crore in training over FY24 and overall investments of up to Rs 524 crore.
| UC consolidated (INR cr) | FY22 | FY23 | FY24 | Q1 FY25 (unaudited) |
| Net revenue | 438 | 637 | 827 | 281 |
| Operating EBITDA | -377 | -297 | -116 | 7 |
| Profit/Loss before tax | -514 | -312 | -93 | 12 |