Eternal (ETERNAL) Q4 19/20 earnings summary

Executive summary

• FY20 total income nearly doubled YoY to ₹27,427.39 Mn consolidated and ₹24,857.60 Mn standalone; consolidated loss widened to ₹23,856.01 Mn.

• Operations emphasized improving online-ordering unit economics, reducing logistics costs and user discounts, and lowering the overall burn rate through efficiency measures.

Financial highlights

• Consolidated revenue from operations was ₹26,047.37 Mn vs ₹13,125.86 Mn in FY19; total expenses rose to ₹50,063.11 Mn from ₹35,980.41 Mn.

• Consolidated loss before exceptional items and tax was ₹22,635.72 Mn; exceptional items were a ₹1,220.29 Mn loss, vs ₹11,999.20 Mn exceptional income in FY19.

• Standalone revenue from operations reached ₹23,363.49 Mn vs ₹11,628.74 Mn; loss for the year widened to ₹24,511.77 Mn from ₹9,404.67 Mn.

• Consolidated total comprehensive loss was ₹23,628.00 Mn vs ₹10,040.23 Mn in FY19; basic and diluted loss per share was ₹0.07 vs ₹0.03.

Outlook and guidance

• Management expected improvement in coming years from prioritizing relevant geographies, closing non-operative entities and subsidiaries, and raising operational efficiency.

• Product priorities included contactless dining and delivery/takeaway offerings in select geographies; management also emphasized customer satisfaction and growth without compromising profitability.