Zomato Reports Rs 125 Crore Profit in Q3 FY24, Records Strong Revenue Growth

Introduction:

Zomato announces impressive financial results for the third quarter of the current fiscal year, with a notable increase in profit and strong revenue growth. The company's performance reflects its continued focus on innovation and disruption in the food delivery industry.

Key Financial Highlights:

• Zomato reports a profit of Rs 125 crore in Q3 FY24, marking a substantial improvement compared to the same quarter last year.
• Consolidated adjusted revenue grows by 53% year-on-year to reach Rs 3,609 crore, exceeding expectations.
• Gross order value (GOV) across its B2C businesses witnesses a significant increase of 47% year-on-year, surpassing Rs 50,000 crore on an annualized basis.

CEO's Comments:

• Deepinder Goyal, Zomato co-founder and CEO, expresses satisfaction with the company's performance, highlighting the robust topline growth and optimistic outlook for the future.
• He emphasizes the importance of innovation and disruption in driving continued success in the competitive food delivery market.

Financial Outlook:

• Zomato expects both margin expansion and GOV growth to drive further improvement in absolute profits, with annualized adjusted EBITDA profit now exceeding Rs 1,000 crore.
• The company remains focused on achieving adjusted EBITDA break-even by Q1FY25, demonstrating its commitment to financial sustainability.

Operational Highlights:

• Blinkit, a subsidiary of Zomato, experiences strong GOV growth of 103%, with a continued decline in losses, in line with expectations.
• The company's cash balance increases for the third consecutive quarter, reflecting its financial strength and stability.

Future Prospects:

• Zomato Payments Private Limited (ZPPL) receives authorization from the Reserve Bank of India (RBI) to operate as an Online Payment Aggregator, enhancing its capabilities and expanding its service offerings.

Conclusion:

Zomato's strong financial performance in Q3 FY24 underscores its position as a leading player in the food delivery industry. With robust revenue growth, improved profitability, and a focus on innovation, the company is well-positioned for future success in an increasingly competitive market landscape.