Zomato, a food aggregation platform, achieved its first-ever profitability in the first quarter of 2023–24 (FY24). In contrast to a loss of Rs. 186 crore during the same period last year, the company reported a consolidated profit after tax of Rs. 2 crore for the quarter that ended in June 2023.
The Gurugram-based meal delivery service’s operating revenue increased 71% year over year (YoY) to Rs. 2,416 crore in Q1FY24 from Rs. 1,414 crore in the same quarter the previous year.
From Rs. 2,431 in the previous quarter and Rs. 1,768 crore in Q1 of 2022-23 (FY23), the company’s total expenses increased to Rs. 2,612 crore for the quarter.
In comparison to a loss of Rs. 175 crore in the fourth quarter (Q4) of FY23, Zomato’s adjusted earnings before interest, tax, depreciation, and amortisation (Ebitda), which includes its rapid commerce firm Blinkit, went positive for the first time ever at Rs. 12 crore.
In a regulatory filing, Akshant Goyal, chief financial officer of Zomato, stated, “Knowing what we know today, we believe we will continue to deliver over 40% YoY top line (adjusted revenue) growth for at least the next couple of years.”
The company’s food delivery division saw a growth in adjusted revenue in Q1 to Rs. 1,742 crore from Rs. 1,530 crore in the previous quarter and Rs. 1,470 crore in the same time last year. From Rs. 6,569 crore in Q4FY24 to Rs. 7,318 crore in the current quarter, the gross order value (GOV) for this firm climbed 10% quarter over quarter (QoQ). GOV grew from Rs. 6,423 crore in Q1FY23 on an annual basis.
The recovery in demand, better operational execution, and increasing uptake of Zomato Gold, the company’s membership programme, according to Rakesh Ranjan, CEO of Zomato’s food ordering and delivery division.
