 "Zomato is now allowing its users to build multiple carts at one time")
Food delivery company Zomato Limited on Monday reported a consolidated net profit of Rs 175 crore for the quarter ended on March 31, 2024. A year ago, during the same period, the company had posted a consolidated net loss of Rs 188 crore
In the Q4 of 2023-24, the company reported a consolidated revenue of Rs 3,562 crore, up 73 per cent from Rs 2,056 crore year-on-year (Y-o-Y). Total expenses of the company were Rs 3,636 crore for the quarter, up 49.5 per cent compared to Rs 2,431 crore in the year-ago period.
The company’s food delivery gross order value (GOV) witnessed a 28 per cent Y-o-Y growth in Q4FY24, driven by a 5 per cent Y-o-Y increase in average order value (AOV) and a 23 per cent Y-o-Y rise in order volume. This growth contributed to a Y-o-Y acceleration in the topline, reaching 61 per cent, surpassing the stated outlook of 40 per cent or more, the company said.
Zomato’s bottom line continued to expand, with adjusted earnings before interest, taxes, depreciation, and amortisation (Ebitda) reaching Rs 194 crore, showcasing margin expansion in both the food delivery and quick commerce segments. Notably, the quick commerce business achieved a significant milestone by attaining Adjusted Ebitda breakeven in March 2024.
Blinkit: Quick growth, just like its delivery
In the quick commerce sector, Zomato’s Blinkit brand experienced exceptional growth, with a 97 per cent Y-o-Y increase in GOV. This growth was primarily fuelled by rapid store expansion, with 75 net new stores added in Q4FY24, bringing the total store count to 526.
The company aims to further expand its footprint by adding 100 more stores in the current quarter and reaching 1,000 stores by the end of FY25. With profitability in focus, Blinkit achieved Adjusted Ebitda positivity in March 2024, with a steady-state margin expectation of 4-5 per cent.
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Zomato FY24 results
For the entire financial year, the food delivery platform reported a consolidated net profit of Rs 351 crore. The company had posted a consolidated net loss of Rs 971 crore at the end of FY23.
In FY24, consolidated revenue from operations stood at Rs 12,114 crore, up 71 per cent from Rs 7,079 crore at the end of FY23.
The results for the year ended March 31, 2024, are not comparable with the year ended March 31, 2023, due to the acquisition of Blink Commerce Pvt Ltd (formerly known as Grofers India Pvt Ltd) in June 2022, the company said.
Speaking on the results, Deepinder Goyal, founder & CEO, Zomato said, “We believe that we can continue to grow faster if we continue to innovate using our customer first principles, while creating value for all our other stakeholders – our restaurant partners, and our delivery partners.”
Shares of Zomato closed trading at Rs 193.7 on the BSE after the company released its Q4 and FY24 earnings report.
