Zomato Quarterly Results: Zomato on Thursday posted its fiscal first quarter earnings with profit at Rs 253 crore, posting a growth of 12550 per cent in comparison to Rs 2 crore recorded during the corresponding quarter of FY24. Q1FY24 was the first quarter when Zomato had posted a quarterly net profit. It posted revenue from operations at Rs 4,206 crore, up 74.1 per cent as against Rs 2,416 crore during the same period of previous fiscal year.
The food delivery platform posted gross order value (GOV) growth across its B2C businesses (food delivery, quick commerce and going-out) at Rs 15,455 crore, up 53 per cent YoY. Meanwhile, food delivery GOV grew by 27 per cent on-year, quick commerce GOV posted growth of 130 per cent YoY and going-out GOV increased by 106 per cent YoY. The company’s B2B business Hyperpure’s revenue grew by 96 per cent YoY with improving profitability.
While the company’s quick commerce segment recorded the highest gross order value growth of 130 per cent, going-out category posted 106 per cent growth in GOV and food delivery category reported gross order value growth of 27 per cent.
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In terms of revenue, Blinkit (Zomato’s quick-commerce business) reported adjusted revenue for Q1 at Rs 942 crore and an adjusted EBITDA of negative Rs 3 crore. “Competitive intensity in the quick commerce category has been high since the word ‘quick commerce’ was coined. Recently, some players have been spending more on marketing and subsidies. However, our customers, who value quality of service and reliability, seem to be unaffected and that reflects in our performance of the quarter, where we have grown 20%+ without the need to match the spends or subsidies of our competitors,” said Albinder Dhindsa, CEO, Blinkit.
The food delivery segment posted adjusted revenue at Rs 2,256 crore and adjusted EBITDA at Rs 313 crore for the quarter in review.
The going-out segment reported a revenue of Rs 95 crore and adjusted EBITDA at Rs 10 crore. “This dining-out business is now operating at a run-rate of $500m+ annualised GOV and is already profitable. We believe that there is an opportunity to further expand our going-out offering, building on top of our dining-out business. Additional use cases for customers in the going out space include – movies, sports ticketing, live performances, shopping, staycations etc., some of which we have already launched, or are building as we speak,” said Deepinder Goyal, CEO, Zomato.
Zomato is also planning to have 2,000 stores for its quick commerce vertical Blinkit by the end of 2026. “Most of these stores would be in the top 10 cities in India. Beyond the large cities, the size of the market is still undiscovered. How fast we are able to get to this store count, will depend on how well we execute, i.e., how we build our team and how efficiently we scale our supply chain,” said Albinder Dhindsa.
Furthermore, talking about ESOP cost increase this quarter Akshant Goyal, CFO, Zomato, said, “We would like to reiterate that the creation of the new ESOP 2024 pool by itself will not lead to any increase in ESOP charge. ESOP charge is a non-cash expense and is booked only when the ESOPs are granted to employees. We would also like to reiterate that despite the expected increase in both the ESOP charge and the cash employee expense, we expect our total employee cost as a % of Adjusted Revenue to continue trending downwards in FY25 and beyond.”
From: financialexpress
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