Zomato Q4 net loss widens to Rs 360 cr

The food delivery platform on Monday said its consolidated net loss widened to Rs 359.70 crore in Q4 March 2022 compared with net loss of Rs 134.20 crore in the corresponding quarter last year.

May 24, 2022 10:26 IST | capital market
Revenue from operations came in at Rs 1,211.80 crore, rising 75.01% compared to Rs 692.40 crore in the same quarter last year. Total expenditure surged 97.35% year-on-year to Rs 1,669.40 crore in Q4 March 2022. Employee expenses climbed 112.21% to Rs 406.80 crore. Gross Order Value (GOV) grew by 6% QoQ and 77% YoY to a record high of Rs 5850 crore in Q4FY22. This was driven by healthy growth in order volumes while the average order value remained stable. On the profitability front, contribution as a % of GOV increased to 1.7% in Q4FY22 as compared to 1.1% in Q3FY22. Adjusted EBITDA (for food delivery) as a % of GOV was -1.3%, as compared to -2.2% in Q3FY22. Average monthly transacting customers were at an all time high of 15.7 million last quarter growing from 15.3 million in the previous quarter. Likewise, average monthly active restaurant partners and delivery partners were at all time highs as well. New customer addition remained healthy and similar to Q3 numbers despite reduced marketing spends (-14% QoQ). Zomatos chief financial officer, Akshant Goyal said that the company expects its adjusted revenue growth to accelerate to double digits in the next quarter and the adjusted EBITDA losses to also come down meaningfully. Reduction in losses will be driven by improvement in contribution margin of the food delivery business and also operating leverage playing out as our revenue is growing faster than our fixed costs, it said. The company launched 300+ new cities in Q4FY22. It is now present in 1,000+ towns and cities across India. For the fiscal year 2022, losses of the company came in at Rs 1222.50 crore, compared with Rs 816.40 in the previous year. Revenue also increased 110.27% to Rs 4192.4 crore as against Rs 1993.8 crore. Its average order value for FY22 was Rs 398 compared to Rs 397 for FY21. For the top 8 cities, it saw the value increase by 3% in FY22 over FY21. Commenting on the performance, Zomato Founder and CEO Deepinder Goyal said, We think our growth trajectory is back on track, and we dont foresee post-COVID ramifications affecting our growth rate anymore. Having said that, even before COVID, growth in our business has been lumpy (and not linear) -- so it is essential to take a long term view of our business. He further said Zomato is aiming for accelerated growth along with further reduction in losses and increasing profits in some time. We are clear on what our long term shareholders expect of us and we are working hard to deliver on both growth and profitability expectations, Goyal added. Goyal further said, we are seeing some stress on the availability of delivery partners in the current quarter in select large cities since the last week of April. We think this is short-term in nature, as the post covid economic recovery has brought back jobs in cities, and we lost some delivery partners to such jobs. On top of it, all the workforce which migrated to their hometowns (or villages) during the first COVID wave, hasnt yet come back to the cities for work - thus hampering our Delivery Partner Acquisition Rate. We think things will normalize in a few weeks. We are also working on various long term initiatives to drive more stability of delivery partners in our fleet. Hyperpure revenue grew 24% QoQ and 160% YoY to Rs 190 crore in Q4FY22. Adjusted EBITDA loss margin improved from -23% in Q3FY22 to -20% in Q4FY22. Hyperpure launched in another city in the quarter taking its presence to 10 cities. Zomato supplied to over 34K unique restaurants in this quarter - up from ~27k in Q3FY22. This implies a penetration of ~17% of the ~205k restaurants who worked with us in our food delivery business in the last quarter. Hyperpure currently offers ~4,200 stock keeping units (SKUs) for restaurants to buy. Zomato offers services like restaurants discovery and reviews, home delivery of food, online table reservation, and digital payments when dining out. It also works with restaurant partners to provide tools that enable them to engage and acquire more customers while empowering them with a last-mile delivery service and a one-stop procurement solution - Hyperpure, for ingredients and kitchen products. Shares of Zomato surged 13.16% to Rs 64.50 on the BSE. Powered by Capital Market - Live News

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