Zomato reports remarkable Q1 FY24 profitability

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Foodtech major Zomato announced on Thursday (August 3) that it turned profitable in the first quarter of the financial year 2023-24 (FY24). The company reported a consolidated profit after tax (PAT) of INR 2 Cr, a significant turnaround from the consolidated net loss of INR 186 Cr in the same quarter of the previous fiscal. This remarkable achievement was driven by robust growth across all business segments.

Zomato Impressive Revenue Growth and Contribution Margin

Zomato’s operating revenue for the reported quarter stood at INR 2,416 Cr, an increase from INR 1,413.9 Cr in Q1 FY23. This revenue growth also reflects a 17.5% rise from the INR 2,056 Cr operating revenue reported in the previous quarter, Q4 FY23. The food delivery business registered an adjusted revenue of INR 1,742 Cr, witnessing an 18.5% year-on-year (YoY) growth and almost 14% increase from Q4 FY23.

Positive Performance of Quick-Commerce Business

Blinkit, Zomato’s quick-commerce business, achieved a significant milestone as it turned contribution positive for the first time in June 2023. The adjusted revenue of Blinkit reached INR 384 Cr, growing by 5.7% sequentially, with a gross order value (GOV) of INR 2,140 Cr, showing a 4.6% rise quarter-on-quarter (QoQ). Despite slower GOV growth in Q1 FY24 due to temporary disruptions in April, Blinkit’s adjusted EBITDA loss narrowed to INR 133 Cr in the reported quarter.

Zomato Positive Outlook and Focus on Profitability

Zomato remains optimistic about its future prospects. The company expects its consolidated business to remain profitable and continue delivering over 40% YoY topline (adjusted revenue) growth for at least the next couple of years. It aims to achieve breakeven on an adjusted EBITDA basis for Blinkit in the coming four quarters.

Expense Management and Share Performance

Zomato has made efforts to manage expenses effectively. Employee benefit expenses were brought down both on a QoQ and YoY basis, while ESOP expenses declined from the previous year. However, advertising and sales promotions expenses rose 13% YoY, and delivery and related charges increased by 41.6% YoY. Despite the rise in expenses, Zomato’s shares closed 1.5% higher at INR 86.22 on the BSE following the news of its profitability in Q1 FY24.

Also Read The Latest News:
Spinny layoffs 300 employees amid merger with Truebil and Spinny Max

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We strive to uphold the highest ethical standards in all of our reporting and coverage. We StartupNews.fyi want to be transparent with our readers about any potential conflicts of interest that may arise in our work. It’s possible that some of the investors we feature may have connections to other businesses, including competitors or companies we write about. However, we want to assure our readers that this will not have any impact on the integrity or impartiality of our reporting. We are committed to delivering accurate, unbiased news and information to our audience, and we will continue to uphold our ethics and principles in all of our work. Thank you for your trust and support.

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Zomato reports remarkable Q1 FY24 profitability

Foodtech major Zomato announced on Thursday (August 3) that it turned profitable in the first quarter of the financial year 2023-24 (FY24). The company reported a consolidated profit after tax (PAT) of INR 2 Cr, a significant turnaround from the consolidated net loss of INR 186 Cr in the same quarter of the previous fiscal. This remarkable achievement was driven by robust growth across all business segments.

Zomato Impressive Revenue Growth and Contribution Margin

Zomato’s operating revenue for the reported quarter stood at INR 2,416 Cr, an increase from INR 1,413.9 Cr in Q1 FY23. This revenue growth also reflects a 17.5% rise from the INR 2,056 Cr operating revenue reported in the previous quarter, Q4 FY23. The food delivery business registered an adjusted revenue of INR 1,742 Cr, witnessing an 18.5% year-on-year (YoY) growth and almost 14% increase from Q4 FY23.

Positive Performance of Quick-Commerce Business

Blinkit, Zomato’s quick-commerce business, achieved a significant milestone as it turned contribution positive for the first time in June 2023. The adjusted revenue of Blinkit reached INR 384 Cr, growing by 5.7% sequentially, with a gross order value (GOV) of INR 2,140 Cr, showing a 4.6% rise quarter-on-quarter (QoQ). Despite slower GOV growth in Q1 FY24 due to temporary disruptions in April, Blinkit’s adjusted EBITDA loss narrowed to INR 133 Cr in the reported quarter.

Zomato Positive Outlook and Focus on Profitability

Zomato remains optimistic about its future prospects. The company expects its consolidated business to remain profitable and continue delivering over 40% YoY topline (adjusted revenue) growth for at least the next couple of years. It aims to achieve breakeven on an adjusted EBITDA basis for Blinkit in the coming four quarters.

Expense Management and Share Performance

Zomato has made efforts to manage expenses effectively. Employee benefit expenses were brought down both on a QoQ and YoY basis, while ESOP expenses declined from the previous year. However, advertising and sales promotions expenses rose 13% YoY, and delivery and related charges increased by 41.6% YoY. Despite the rise in expenses, Zomato’s shares closed 1.5% higher at INR 86.22 on the BSE following the news of its profitability in Q1 FY24.

Also Read The Latest News:
Spinny layoffs 300 employees amid merger with Truebil and Spinny Max

Disclaimer

We strive to uphold the highest ethical standards in all of our reporting and coverage. We StartupNews.fyi want to be transparent with our readers about any potential conflicts of interest that may arise in our work. It’s possible that some of the investors we feature may have connections to other businesses, including competitors or companies we write about. However, we want to assure our readers that this will not have any impact on the integrity or impartiality of our reporting. We are committed to delivering accurate, unbiased news and information to our audience, and we will continue to uphold our ethics and principles in all of our work. Thank you for your trust and support.

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