Zomato tastes first ever profit at Rs 2 cr in Q1; revenue soars 71%

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Food aggregator platform Zomato turned profitable for the first time ever in the first quarter (Q1) of 2023-24 (FY24). The firm reported a consolidated profit after tax of Rs. 2 crore for the quarter that ended in June 2023, compared to a loss of Rs. 186 crore in the year-ago period.


Revenue from operations for the Gurugram-based food delivery company grew 71 per cent year-on-year (YoY) to Rs. 2,416 crore in Q1FY24, up from Rs. 1,414 crore in the corresponding period a year ago.


The firm’s total expenses rose to Rs. 2,612 crore for the quarter, up from Rs. 2,431 in the previous quarter and Rs. 1,768 crore in Q1 of 2022-23 (FY23).


Zomato’s adjusted earnings before interest, tax, depreciation, and amortisation (Ebitda), including its quick commerce business Blinkit, turned positive for the first time ever at Rs. 12 crore, compared with a loss of Rs. 175 crore in the fourth quarter (Q4) of FY23.


“Knowing what we know today, we believe we will continue to deliver over 40 per cent YoY top line (adjusted revenue) growth for at least the next couple of years,” said Akshant Goyal, chief financial officer, Zomato, in a regulatory filing.


Food delivery


Adjusted revenue for its food delivery business increased to Rs. 1,742 crore in Q1, up from Rs. 1,530 crore a quarter ago, and Rs. 1,470 crore in the year-ago period. The gross order value (GOV) for this business increased 10 per cent quarter-on-quarter (QoQ), from Rs. 6,569 crore in Q4FY24 to Rs. 7,318 crore in the current quarter. On a yearly basis, GOV increased from Rs. 6,423 crore in Q1FY23.


Rakesh Ranjan, chief executive officer (CEO) of Zomato’s food ordering and delivery business, attributed this growth to improved execution in the company’s operations, a recovery in demand, and growing adoption of its membership programme Zomato Gold.


The average monthly transacting customers for its food delivery vertical grew to 17.5 million, compared with 16.6 million a quarter ago.


“Over Rs. 515 crore of GOV was transacted through Zomato Dining Out in Q1FY24, which is 7 per cent of the GOV our food delivery business did in the same quarter. This business is also already profitable with an adjusted Ebitda margin (as a percentage of GOV) of about 1 per cent in Q1FY24 for the India business,” said Deepinder Goyal, founder and CEO, Zomato.


Blinkit


The firm’s quick-commerce arm, Blinkit, turned contribution-positive for the first time ever during the quarter. Its revenue increased to Rs. 384 crore, up from Rs. 363 crore a quarter ago, while its GOV for the quarter was reported to be Rs. 2,140 crore, compared with Rs. 2,046 crore a quarter ago.


“The slower sequential GOV growth in Q1FY24 was mainly due to the temporary business disruption we had in April resulting from the change in the delivery partner payout structure,” said Blinkit CEO Albinder Dhindsa.


Blinkit’s average order value stood at Rs. 582 in Q1, up from Rs. 522 in the previous quarter. Its dark store count also increased slightly QoQ from 377 to 383.


Hyperpure


Its business-to-business vertical, Hyperpure, saw its revenue rise 126 per cent YoY to Rs. 617 crore, compared with Rs. 273 crore a year ago, driven by growth across the firm’s core restaurant supplies business, as well as the newer quick-commerce opportunity that Zomato began to tap into a few quarters ago.

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