May 14, 2023
New Delhi, India
Zomato Posts Fourth Straight Quarter of Profit
Zomato has reported a net profit of ₹175 crore for the January-March 2024 quarter, marking its fourth consecutive quarter possitive. The company achieved a substantial 73% increase in revenue year-on-year, rising to ₹3,562 crore. This comes as a notable achievement amidst the broader e-commerce sector’s struggle with high inflation and muted demand .
During the same quarter last year, Zomato had posted a net loss of ₹188 crore and a revenue of ₹2,056 crore. The sharp turnaround in profitability has been driven by strong performance in its core food delivery business and the rapid growth of its quick commerce segment, Blinkit.
For the fiscal year ending March 31, 2024, Zomato’s consolidated net profit stood at ₹351 crore, a significant improvement from a net loss of ₹971 crore in the previous fiscal year. Consolidated revenue from operations for the fiscal year was ₹12,114 crore, up from ₹7,079 crore in FY23.
Growth Drivers and Future Outlook
Zomato‘s Managing Director and CEO, Deepinder Goyal, highlighted the robust growth in the company’s Gross Order Value (GOV), which saw a 28% year-on-year increase. Goyal attributed this growth to Zomato’s strategic focus on enhancing customer convenience and service predictability.
Blinkit, which Zomato acquired in June 2022, has also contributed significantly to the company’s financial health. Blinkit reached an adjusted EBITDA break-even mark for March 2024 and is undergoing rapid store expansion. The company aims to increase its store count to 1,000 by the end of FY25.
Goyal emphasized that Zomato is focusing on its four main business verticals: food delivery, Blinkit, Hyperpure (B2B), and Going-out. He reiterated the company’s strategy to drive growth through innovation and a customer-first approach, which is expected to continue fueling their growth ahead of the overall restaurant industry.
Market Performance
Zomato’s stock has been performing well, reflecting investor confidence in its profitability and growth trajectory. The company’s shares are currently trading at more than 100 times forward earnings, significantly higher than its global peers such as Uber, Deliveroo, and Meituan.
In conclusion, Zomato’s Q4 results underscore the company’s successful navigation through market challenges, demonstrating resilience and robust growth in both its food delivery and quick commerce segments. As Zomato continues to expand and innovate, it is well-positioned for continued success in the coming fiscal year.
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