Zomato Q1 Results: Revenue increases 71% YoY and the food delivery service becomes profitable with a PAT of Rs 2 crore

4 Aug 2023 , 11:23 AM

For the quarter that ended in June 2023, the food delivery service Zomato declared a consolidated net profit of Rs 2 crore as opposed to a deficit of Rs 186 crore for the same quarter the previous fiscal year.

For the March quarter, the company posted a loss of Rs 189 crore.

The operating revenue for the reporting quarter was Rs 2,416 crore, an increase of approximately 71% year over year from the Rs 1,414 crore reported by the company in the prior quarter.

During market hours, the quarterly earnings were announced, and the stock on the NSE increased by more than 2%.

According to the company’s market report, the rapid commerce (Blinkit) business achieved its first-ever contribution-positive month in June 2023.

Gross order value (GOV) for the reporting quarter increased for the company to Rs 7,318 crore from Rs 6,425 crore in the corresponding quarter of the prior financial year. Additionally, it increased sequentially from the March quarter’s Rs 6,569 crore. In Q1FY24, there were 1.75 crore on average monthly transactional clients compared to 1.67 crore in the same quarter last year.

Both a significant increase in the number of orders and a slight increase in average order value contributed to the GOV growth. Since February of this year, the company has seen a resurgence in demand, which persisted through Q1FY24. The company typically performs better in Q1 than other quarters, according to the exchange filing.

The implementation of the Gold program increased ordering frequency and is currently responsible for 30%+ of GOV in the food delivery industry.

The temporary business disruption brought on by the change in the delivery partner compensation structure in April was blamed by the firm for the slower sequential GOV growth in Blinkit in Q1FY24. This led to the temporary shutdown of its dark stores in some regions of the nation for a few days.

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