(Reuters) -Shares of Indian home services platform Urban Company declined more than 6% 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% premium in September at 162.25 rupees, was trading down as much as 6.8% at 147.01 rupees.
The stock was last trading 2.2% lower, as of 09:52 a.m. IST.
The company posted a consolidated loss of 593.3 million rupees (about $7 million) for the September quarter on Saturday, compared to a loss of 18.2 million rupees a year earlier.
Urban Company reported a profit of 69.4 million rupees in the April-June quarter.
Even as the company’s domestic consumer services business posted a 19.3% rise in net transaction value, profit from the segment declined more than 61%.
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 429.1 million rupees.
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% since listing on September 17 and continue to trade below its debut price.
($1 = 87.8950 Indian rupees)
(Reporting by Manvi Pant; Editing by Sonia Cheema)
