1

ICFAI Business School

IFHE, Hyderabad

 Project Report
on
FINANCIAL ANALYSIS OF SWIGGY AND
ZOMATO
Submitted to: Anil Kumar

Submitted by:

   Shreya Gudena 21FMUCHH010510.

Bakka Smrithi 21FMUCHH010649

Krithika vutukur 21FMUCHH011011

TABLE OF CONTENTS
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INTRODUCTION -------------------------------------------------------------------------------------3

FINANCIAL RATIOS OF SWIGGY AND ZOMATO ------------------------------------------5

COMPARATIVE FINANCIAL ANALYSIS -----------------------------------------------------16

CONCLUSION ---------------------------------------------------------------------------------------25

BIBLIOGRAPHY ------------------------------------------------------------------------------------26

ANNEXURE ------------------------------------------------------------------------------------------27

INTRODUCTION 
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Digitalization has established itself into every aspect of our life. The pandemic's abrupt

emergence has had a significant positive impact on the online market and e-commerce industries.

Consideration should be given to a number of variables, including the company's founding,

investors, regular orders, competitors, safety precautions, and revenue generating. Statistics show

that Swiggy and Zomato each account for at least 80% of the market for online meal delivery. 

Swiggy has been around since 2014 as one of the well-known online food ordering and delivery

businesses. Its founding members are Sriharsha Majety, Nandan Reddy, and Rahul Jaimini. The

business is operated by Bundi Technologies Pvt Ltd and has its headquarters in Bangalore. Since

its founding, the company has expanded to more than 300 Indian cities. The management of the

meal delivery business is done by Vivek Sunder, Dale Vaz, and Rahul Bothra. Burger King,

Sodexo, Indifi Technologies, Google Local Guide, and ANRA Technologies are all partners with

the business. Additionally, it has introduced Swiggy Money in collaboration with ICICI Bank to

enable online payments. Under the moniker Swiggy Stores, the company expanded its line of

business to include the delivery of needs. Swiggy Go, a quick pickup/drop-off service, was

introduced in 2019 by the company. Customers can use this facility to move meals, packages,

laundry, and documents from one location to another. Swiggy places a strong emphasis on

providing clients with speedy delivery of their orders from the closest location. It puts the

requirements of the hungry person ahead of the design and deals provided. Additionally, the

business teamed with Apollo Pharmacy, Liscious, Health HK Ark, and Ferns & Petals to open

more than 3500 Swiggy Stores in Gurugram. The company has advanced significantly as a result

of the deep discounting policy and widespread reduction in the cost of shipping fees. The Swiggy

app is simple to use, well-designed, and free of complicated animations. The homepage lists

nearby restaurants, a history of orders, and several payment options. Realizing the impact of the
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pandemic, it introduced a new project called the Swiggy Instamart in August 2020. Within 45

minutes, it intends to offer immediate products like fruits, dinners, snacks, ice cream, and

veggies.

Zomato, an international food delivery service based in India, was founded in 2008. The business

has offices throughout the country, including Gurugram, Haryana, Pune, Delhi, Mumbai,

Chennai, Kolkata, and Bangalore. Additionally, it has offices in the UK, South Africa, Brazil,

Turkey, Canada, Ireland, New Zealand, the United Arab Emirates, Sri Lanka, and Qatar. The

CEO and COO of the meal delivery business are Deepinder Goyal and Gaurav Gupta. 

The business, which provides services in more than 10,000 cities, is jointly owned by Info Edge,

Uber, Antfin Singapore, and Alipay Singapore. Zomato has acquired businesses like

Gastronauci, Urbanspoon, Zomato, Sparse Labs, TongueStun, Grofers, Uber Eats, and

TechEagle Innovations since it first started operating. To create its distinctive URL and generate

traffic, Zomato uses top keywords and concentrates on SEO tools. To keep users interested, it

also publishes amusing, popular, and interesting posts. It seeks to enhance digital marketing

tactics and draw in a sizable audience through social media marketing. Although Zomato's user

interface is straightforward, the account page is fascinating.  Users can make profiles, post

reviews, upload images and videos, and follow different food blogs and businesses. In order to

draw in more customers, it gives interesting cashback/deals and awards 25 points for each

purchase review. Before placing the order, it displays additional suggestions and recalls the last

payment method used. Zomato has a strong emphasis on identifying restaurants and offering a

fun app experience, whereas Swiggy places a strong emphasis on fast food delivery.
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FINANCIAL RATIOS OF SWIGGY AND ZOMATO

Ratio analysis is the study of relationships among the various financial factors in a business. We

need to find the ratios because absolute figures do not provide meaningful understanding.

1. Profitability Ratios ask the question, “how well has the company performed overall?”

a.) Gross Profit Margin

Particulars as on 31/03/2020 as on 31/03/21 as on 31/03/22

Gross Profit Margin = Gross Profit/sales x 100
Gross Profit -21,666.01 33,190.00 -3,423 25,090.00 -13,558 56,538.00
Sales 26047.37 34,681.00 19938 25,469.00 41924 57,049.00
Gross Profit 98.5119164
Margin -83.17925073 95.70081601 -17.17 5 -32.34 99.10427878
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b.) Operating Profit Ratio

Particulars as on 31/03/2020 as on 31/03/21 as on 31/03/22

Operating Profit Ratio = EBIT/Net Sales
EBIT -25,343.71 -38771 -6,041 -13,906.00 -19,917 -34,063.00
Net Sales 26047.4 36,394.00 19938 26,759.00 41924 61,198.00
Operating
Profit - - - - - -
Ratio 0.9729842518 1.065312964 0.3029892667 0.5196756232 0.4750739433 0.556603157
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c.) Net Profit Ratio

Particulars as on 31/03/2020 as on 31/03/21 as on 31/03/22

Net Profit Ratio = EAT/Net Sales
EAT -23856 -39,085.00 -8164.3 -13,101.00 -12225 -32,805.00
Net Sales 260474 36,394.00 19938 26,759.00 41924 61,198.00
Net Profit - - - - - -
Ratio 10.9185949 0.9311500576 2.442095464 2.042515838 3.429366053 1.865508307

2. Liquidity Ratios ask the question. “Can the company meet its obligations over the short

term?”

a.) Current Ratio

Particulars as on 31/03/2020 as on 31/03/21 as on 31/03/22

Current Ratio = Current Assets/Current Liabilities
Current
Assets 12,633.57 28692 41,505.00 20258 75,450.00 121336
Current
Liabilities 7,208.33 6372.19 5,177.40 7031.05 7,115.00 16838.01
Current
Ratio 1.752634799 4.502690598 8.016572025 2.881219732 10.60435699 7.206077203
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b.) quick ratio

Particulars as on 31/03/2020 as on 31/03/21 as on 31/03/22

Quick Ratio = (Current Assets-Inventory)/Current Liabilities
Current
Assets 12,633.57 28692 41,505.00 20258 75,450.00 121336
Inventory 37.27 283 148 160 397 177
Current
Liabilities 7,208.33 6372.19 5,177.40 7031.05 7,115.00 16838.01
1.74746439
Quick Ratio 2 4.458278865 7.987986248 2.85846353 10.54855938 7.195565272
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c.) Cash Ratio

Particulars as on 31/03/2020 as on 31/03/21 as on 31/03/22

Cash Ratio = Cash + Marketable Securities/Current Liabilities
Cash 1974.15 4026 1671.92 5225 2,903.75 10961
Marketabl
e
Securities 0.08 1804 3065 1800 3923 77
Current
Liabilities 7,208.33 6372.19 5,177.40 7031.05 7,115.00 16838.01
0.273881745 0.914913083 0.91492254 0.999139531 0.959486999 0.655540648
Cash Ratio 1 3 8 1 3 8
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d.) Net working capital

Particular as on 31/03/2020
s as on 31/03/21 as on 31/03/22
Net Working Capital Ratio = Net Working Capital/total assets
Net
working
capital 5425.24 22319.81 36327.6 13226.95 68335 104497.99
total
assets 7764.7 27751.81 81655 15947.95 165692 107957.99
Net
working
capital 0.698705680 0.804265019 0.44489131 0.829382459 0.412421842 0.967950496
ratio 8 1 1 8 9 3
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3. Turnover Ratios ask the question, “how efficiently is the company managing its assets

to generate sales?”

a.) Inventory turnover ratio

Particular as on 31/03/2020
s as on 31/03/21 as on 31/03/22
Inventory Turnover Ratio = Sales/Inventory
Sales 26047.37 34,681.00 19938 25,469.00 41924 57,049.00
Inventory 37.27 283 148 160 397 177
Inventory
Turnover 0.143085463 0.0081600876 0.742301133 0.0062821469 0.946951626 0.0031025960
Ratio 1 56 5 24 8 14
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b.) Fixed Asset Turnover Ratio

Particular as on 31/03/2020
s as on 31/03/21 as on 31/03/22
Fixed Asset Turnover Ratio = Sales/Fixed Assets
Sales 26047.37 34,681.00 19938 25,469.00 41924 57,049.00
Fixed
Assets 15,915.00 13409 15,391.00 7467 14049 8010
Fixed
Asset
Turnover 0.611002185 0.386638216 0.771943023 0.293179944 0.33510638 0.140405616
Ratio 6 9 4 2 3 2

c.) current asset turnover ratio

Particular as on 31/03/2020
s as on 31/03/21 as on 31/03/22
Current Asset Turnover Ratio = Sales/Current Assets
Sales 26047.37 34,681.00 19938 25,469.00 41924 57,049.00
Current
Assets 12,633.57 28692 41,505.00 20258 75,450.00 121336
Current
Asset
Turnover 2.06175847 1.20873414 0.480375858 1.25723171 0.555652750 0.470173732
Ratio 4 2 3 1 2 4
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4. Coverage ratio- measure a company's ability to service its debt and meet its financial

obligations, such as interest payments or dividends. The higher the coverage ratio, the

easier it should be to make interest payments on its debt or pay dividends.

a. Interest coverage ratio- 

Particulars as on 31/03/2020 as on 31/03/21 as on 31/03/22

Interest coverage ratio = EBIT/interest
-
EBIT -25,343.71 -3877.1 6,041 -1,390.60 -19,917 -3,406.30
Interest 120 783.00 100 729.00 120 484.00
interest coverage - - - - - -
ratio 211.1975833 4.951596424 60.41 1.907544582 165.975 7.037809917
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b. Interest coverage ratio (EBITDA)- 

Particulars as on 31/03/2020 as on 31/03/21 as on 31/03/22

interest coverage ratio= EBITDA/ interest
EBITDA 2288.73 -3,660.20 667.3 -1,169.70 1058.2 -3,236.20
Interest 12.64 783.00 10.1 729.00 12 484.00
Interest - - -
coverage ratio 181.0704114 4.67458493 66.06930693 1.604526749 88.18333333 6.686363636

5. Leverage ratio-  one of several financial measurements that assesses the ability of a company

to meet its financial obligations. A leverage ratio may also be used to measure a company's mix

of operating expenses to get an idea of how changes in output will affect operating income.
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a. Debt-equity ratio- 

Particulars as on 31/03/2020 as on 31/03/21 as on 31/03/22

debt equity ratio= short term+long term/ shareholders funds
Total
liabilities 7,208.33 6,372.19 5,177.00 7,031.05 7,115.00 16,838.01
shareholder 1,22,668.9
s equity 7,097.81 29,667.81 80,930.00 17,373.95 164,989.00 9
debt equity 1.01557 0.214784643 0.0639688619 0.404689204 0.0431240870
ratio 1 7 8 2 6 0.137

b. Total liabilities to total asset ratio-

Particular as on 31/03/2020
s as on 31/03/21 as on 31/03/22
debt to asset ratio= total liabilities/ total asset
total
liabilities 21,906.01 14,349.19 6,105.00 11,777.05 8,281.00 21,388.01
total
assset 29,003.82 44,017 87,035.00 29,151 173,270.00 144,057
debt to
asset 0.755280166 0.325992003 0.0701441948 0.40400157 0.0477924626 0.148469078
ratio 5 1 6 8 3 2
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6. Equity evaluation ratio- A valuation ratio formula measures the relationship between the

market value of a company or its equity and some fundamental financial metric.

as on
Particulars 31/03/2020 as on 31/03/21 as on 31/03/22
equity valuation ratio= market share price/earnings per share
market share price 115 137.45 59.35
earnings per share -5.42 -1.51 -1.67
equity valuation ratio -21.21771218 -91.02649007 -35.53892216
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COMPARATIVE FINANCIAL ANALYSIS

1. Profitability Ratios

PROFITABILITY RATIO- SWIGGY

120

100

80

60

40

20

0
3/31/20 3/31/21 3/31/22
-20 Gross profit margin Operating profit margin Net profit ratio

PROFITABILITY RATIOS - ZOMATO

0
3/31/20 3/31/21 3/31/22
-20

-40

-60

-80

-100

-120
gross profit margin operating profit margin net profit ratio

a.) Gross Profit Margin: The gross profit margin tells you what your business made after paying

for the direct cost of doing business. The gross profit margin is negative for zomato in all 3

years. A negative profit margin tells us that the production costs are more than the total revenue

for a specific period. This means that they're spending more money than they're making, which is

not a sustainable business model. Many companies have negative profit margins depending on
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external factors or unexpected expenses. The gross profit margin is higher for Swiggy, which

means that Swiggy is generating more profits from its sales after accounting for the cost of goods

sold. 

b.) Operating profit Ratio: the operating profit ratio helps in comparing the operating profit

earned by a business in relation to the revenue that will be generated by the business. The

operating profit ratio is negative for both Swiggy and Zomato. The Operating profit is negative

for both companies, which means that they will likely require outside funding to remain in

operation. Comparatively, even though they are negative, Zomato has higher operating ratios

overall, which suggests that Zomato is generating more profits from its core operations after

accounting for all the operating expenses.

c.) Net Profit Ratio: it is one of the best measures of the overall results of a firm, especially when

combined with an evaluation of how well it is using its working capital. It reveals the remaining

profit after all costs of production, administration, and financing have been deducted from sales

and income taxes recognized. Both Swiggy and Zomato have negative net profit ratios for all 3

years. Comparatively, Zomato has a higher net profit ratio than Swiggy, which means Zomato is

better at controlling its expenses and generating profits after accounting for all the expenses,

including taxes and interest payments. Companies can increase their net margin by increasing

revenues, such as through selling more goods or services or by increasing prices. They can also

invest in product redesigns and automation in order to reduce the labour involved in product

assembly. These actions will eventually reduce product costs, which will improve the net profit

ratio. 
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2. Liquidity Ratios

LIQUIDITY RATIO- SWIGGY

8
7
6
5
4
3
2
1
0
3/31/20 3/31/21 3/31/22

Current ratio quick ratio

cash ratio net working capital ratio

LIQUIDITY RATIOS - ZOMATO

12

10

0
3/31/20 3/31/21 3/31/22

Current ratio quick ratio

cash ratio net working capital ratio

a.) Current ratio: The current ratio is a liquidity ratio that indicates a company’s capacity

to repay short-term loans due within the next year. The current ratio describes the

relationship between a company's assets and liabilities. Both Swiggy and Zomato have

current ratios of higher than 1 for all three years. Overall, Zomato has higher current

ratios.  This indicates that Zomato is better able to meet its short-term obligations with its
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current assets. Zomato does have current ratios of 8 and 10 for two different years, which

may indicate that the company has problems managing the capital allocation and is

holding too much cash in its accounts.

b.) Quick Ratio: The quick ratio represents the extent to which a business can pay its

short-term obligations with its most liquid assets. Both Swiggy and Zomato have higher

quick ratios for all three years. Comparatively, Zomato has higher quick ratios, which

signals that it can be more liquid and generate cash quickly in case of emergency. 

c.) Cash Ratio: This ratio measures a company's ability to meet its short-term obligations

with its cash on hand. Both Zomato and Swiggy have cash ratios of less than 1 for all

three years. Comparatively, Swiggy’s cash ratios are a tiny bit higher than Zomato’s. 

Cash ratios of less than 1 indicate that there are more current liabilities than cash and cash

equivalents. It means insufficient cash on hand exists to pay off short-term debt.

d.) Net working capital ratio: Net working capital ratio shows how much of a company's

current liability can be met with the company's current assets.  The net working capital

ratio is the measure of a company's capability to meet the obligations that must be paid

within the foreseeable future. Comparatively, swiggy has higher net working capital

ratios even though both companies have ratios of less than 1. When the net working

capital ratio goes below 1, the company will have to raise funds from the market to meet

its current obligations. 

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3. Turnover Ratios

TURNOVER RATIOS - Zomato

695

595

495

395

295

195

95

-5
3/31/20 3/31/21 3/31/22

inventory turnover ratio fixed asset turnover Current asset turnover

TURNOVER RATIO- SWIGGY

350

300

250

200

150

100

50

0
3/31/20 3/31/21 3/31/22

inventory turnover ratio fixed asset turnover Current asset turnover

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a.) Inventory turnover ratio: The inventory turnover ratio is the number of times a company has

sold and replenished its inventory over a specific amount of time. Both Zomato and Swiggy have

pretty high inventory turnover ratios for all three years. Higher inventory turnover ratios imply

strong sales or insufficient inventory to support sales at that rate. Comparatively, Zomato has

higher inventory turnover ratios than Swiggy. 

b.) Fixed Asset Turnover Ratio: The fixed asset turnover ratio reveals how efficient a company is

at generating sales from its existing fixed assets. Both Zomato and Swiggy have ratios of more

than 1 for all three years.  A higher fixed asset turnover ratio indicates that a company has

effectively used investments in fixed assets to generate sales. Comparatively, Swiggy has higher

fixed asset turnover ratio for all three years, which means they are more efficient in utilizing its

fixed assets to generate sales.

c.) Current asset turnover ratio: The current assets turnover ratio indicates how many times the

current assets are turned over in the form of sales within a specific period of time.

Comparatively, Zomato has slightly higher overall current asset turnover ratios. 
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4. Coverage ratios- 

interest coverage ratio - Zomato

10
5
0
3/31/20 3/31/21 3/31/22
-5
-10
-15
-20
-25
-30

1. interest coverage ratio 2. interest coverage ratio (EBITDA)

interest coverage ratio - swiggy

0
-1 3/31/20 3/31/21 3/31/22

-2
-3
-4
-5
-6
-7
-8

1. interest coverage ratio 2. interest coverage ratio (EBITDA)

a. Interest coverage ratio- used to determine how easily a company can pay interest on its

outstanding debt. Both Swiggy and Zomato have their interest coverage ratio in negative,

i.e., less than zero, which can indicate that the company’s current earnings are

insufficient to service its outstanding debt. But comparatively, Swiggy’s current position

may seem better than that of Zomato.

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5. Leverage ratios- 

LEVERAGE RATIOS - ZOMATO

1.2

0.8

0.6

0.4

0.2

0
3/31/20 3/31/21 3/31/22

1. debt equity ratio 2. debt asset ratio

LEVERAGE RATIOS - SWIGGY

0.45
0.4
0.35
0.3
0.25
0.2
0.15
0.1
0.05
0
3/31/20 3/31/21 3/31/22

1. debt equity ratio 2. debt asset ratio

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a. Debt-equity ratio- Debt to equity ratio shows a company’s debt as a percentage of its

shareholder’s equity. Here, both Zomato and Swiggy have their debt-to-equity ratios less

than one, which indicates that investing is less risky for lenders because the business isn’t

highly leveraged-meaning it isn’t primarily financed with debt. Both Swiggy and Zomato

have been doing well in terms of debt-equity ratio.

b. Total liabilities to total assets ratio- It compares companies debt obligations to the

company’s total assets. debt-to-assets ratio below 1.0 would be seen as relatively safe,

whereas ratios of 2.0 or higher would be considered risky. Both Zomato and Swiggy have

their debt asset ratio below 1.0. In the year 2020, Zomato’s ratio was higher than that of

Swiggy’s, but in the later years, i.e., 2021 and 2022, Zomato reached a better position

while Swiggy has been constant with their position.

6. Equity valuation ratio-

a. The higher the value, the less leveraged the company is. Conversely, a company with an

equity ratio value, that is. 50 or above is considered a conservative company because they

access more funding from shareholder equity than they do from debt. Zomato’s equity

ratio is less than 0.05, i.e., which indicates that there's more outright ownership in the

business than debt. Swiggy, on the other hand, is not listed.

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CONCLUSION 

To conclude, swiggy appears to be in a better position in terms of financial ratios. Swiggy has a

positive gross profit margin for all 3 years, while Zomato’s is negative. Swiggy also has higher

fixed asset turnover and interest coverage ratios. Zomato does have higher quick and current

ratios, but they seem to have more losses than Swiggy, while Swiggy is earning higher revenue.
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BIBLIOGRAPHY

https://www.planify.in/research-report/swiggy/financial/

https://www.moneycontrol.com/financials/zomato/consolidated-ratiosVI/Z

https://in.investing.com/equities/zomato-income-statement?period_type=annually

https://www.indiainfoline.com/company/zomato-ltd-ratios/financials/68117

https://planify-main.s3.amazonaws.com/media/stock/document/linkFrReport/
XBRL_document_in_respect_Consolidated_financial_statement-09022022.pdf

https://planify-main.s3.amazonaws.com/media/stock/document/linkFrReport/Swiggy_2022.pdf

ANNEXURE
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ZOMATO BALANCE SHEET FOR FY 20, FY21, FY22

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ZOMATO INCOME STATEMENT FOR FY20, FY21, FY22

SWIGGY INCOME STATEMENT FOR FY 20 AND FY 21

30
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SWIGGY INCOME STATEMENT FOR FY22.

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SWIGGY BALANCE SHEET FOR FY 21 AND FY22

SWIGGY BALANCE SHEET FOR FY 20

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