Shares of Indian home services platform Urban Company declined more than 6 per cent in early trade on Monday, following its first quarterly results since listing, where the company reported a wider quarterly loss.
The firm, which listed at a 57.5 per cent premium in September at ₹162.25 rupees, was trading down as much as 6.8 per cent at ₹147.01 rupees.
The stock was last trading 2.2 per cent lower, as of 09:52 a.m. IST.
The company posted a consolidated loss of ₹59.33 crore for the September quarter on Saturday, compared to a loss of ₹1.82 crore a year earlier. Urban Company reported a profit of ₹6.94 crore in the April-June quarter.
Even as the company’s domestic consumer services business posted a 19.3 per cent rise in net transaction value, profit from the segment declined more than 61 per cent.
However, the major hit to its bottomline came from losses at its “Insta Help” operations, a recently launched vertical which allows users to book domestic workers within 15 minutes, it said.
The segment incurred a loss of ₹42.91 crore. Analysts at Morgan Stanley see limited clarity on the segment’s potential break-even, or the extent of investments required for it.
Moreover, owing to continued investments in the “Insta Help” business, the company expects to incur losses for the next few quarters, it said in a statement.
Urban Company’s shares have fallen more than 9 per cent since listing on September 17 and continue to trade below its debut price.