January 21, 2025
New Delhi, India
Zomato Q3 FY25 Highlights:
- Net Profit Decline: Zomato’s net profit for Q3 FY25 dropped 57% YoY to ₹59 crore, compared to ₹138 crore a year ago and ₹176 crore in the previous quarter.
- Revenue Growth: Revenue from operations rose 64% YoY to ₹5,404 crore, driven by robust growth in food delivery and quick commerce.
- EBITDA Performance: Adjusted EBITDA grew 128% YoY to ₹285 crore but declined sequentially by 14%, owing to Blinkit’s expansion investments.
Food Delivery Business:
- Revenue increased to ₹2,413 crore, up from ₹2,062 crore YoY.
- Gross Order Value (GOV) rose 17% YoY but grew marginally (2%) QoQ due to demand slowdown.
- Monthly Transacting Customers (MTCs) dipped slightly to 20.5 million, down from 20.7 million in the previous quarter.
CEO’s Perspective:
Rakesh Ranjan, CEO of the food delivery business, acknowledged a demand slowdown but remains optimistic about long-term annual GOV growth of over 20%.
Blinkit Update:
- Revenue soared 117% YoY to ₹1,399 crore, but EBITDA losses widened to ₹103 crore from ₹8 crore in Q2 FY25.
- Blinkit expanded its dark store count to 1,007, aiming to reach 2,000 stores by December 2025, a year ahead of schedule.
- Average Order Value (AOV) improved to ₹707 in Q3 from ₹660 in the previous quarter.
Management Commentary:
Deepinder Goyal, Zomato’s CEO, attributed losses to accelerated growth investments, expecting margin pressures to ease as the business scales.
Other Business Segments:
- Going Out Vertical: Revenue surged 254% YoY to ₹259 crore, bolstered by the District app for events and ticketing, which crossed 6.5 million downloads.
- Hyperpure: The B2B supplies segment posted a 95% YoY revenue growth to ₹1,671 crore.
Market Reaction:
Shares of Zomato fell 7.5% following the earnings release, with the stock trading at ₹230.80. Investors reacted to the steep profit decline and Blinkit’s escalating losses.
Outlook:
Despite current challenges, Zomato’s leadership expressed confidence in the long-term growth potential across its segments, citing strong fundamentals and targeted investments.
Zomato shares were down 10 % as of 11 AM while writing this news hovering around 216 Rs. a piece on NSE.
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