Zomato Q1 Results: Net profit of ₹253 crore, revenue growth over 74%

Zomato Ltd., the popular food delivery aggregator, has posted impressive financial results for the June quarter, showcasing significant growth and improved profitability.

Key Highlights:

• Net Profit: Zomato reported a net profit of ₹253 crore for the quarter. This is a substantial increase from the ₹2 crore profit reported during the same period last year. The previous quarter marked Zomato’s first-ever quarterly net profit.
• Revenue Growth: The company saw a remarkable 74% year-on-year increase in revenue, reaching ₹4,206 crore. This is up from ₹1,416 crore in the previous year.
• EBITDA: Earnings Before Interest, Tax, Depreciation, and Amortisation (EBITDA) stood at ₹177 crore, compared to an EBITDA loss of ₹48 crore reported last year. The EBITDA margin for the quarter was 4.2%.
• Gross Order Value (GOV): Zomato’s GOV increased by 53% to ₹15,455 crore. GOV includes the combined value of consumer-facing services like food delivery and quick-commerce.
• Other Income: The company’s other income for the quarter was ₹236 crore, up from ₹181 crore in the previous year. This boost is attributed to Zomato’s substantial cash reserves of over ₹12,000 crore.

Quick-Commerce Performance:

• Blinkit: Zomato’s quick-commerce business, Blinkit, reported an adjusted EBITDA loss of ₹3 crore. However, Blinkit exceeded its store expansion target, adding 113 stores against a guidance of 100.

Employee Costs:

• ESOP Charges: The proportion of Employee Stock Option Plan (ESOP) charges in total employee costs has decreased from 54% at the end of the financial year 2022 to 31% by the end of financial year 2024. Total employee costs have reduced to 12%. The company anticipates this to be between 6-8% of adjusted revenue by the end of financial year 2026.