Online food delivery firm Zomato Ltd on Monday reported a consolidated net profit of Rs 175 crore in the March quarter on the back of higher revenue. The company had posted a consolidated net loss of Rs 188 crore in the same quarter last fiscal, Zomato Ltd said in a regulatory filing.
“Year-on-year topline growth accelerated to 61% and continues to trend above the stated outlook of 40%+, growth driven by robust growth in both food delivery and quick commerce,” the press release published by Zomato read.
Bottomline continues to expand and grow with Adjusted EBITDA at INR 194 crore. Margin expansion continues in both food delivery and quick commerce.
KEY TAKEAWAYS
● Year-on-year topline growth accelerated to 61% and continues to trend above the stated outlook of 40%+;Growth driven by robust growth in both food delivery and quick commerce.
● Bottomline continues to expand and grow with Adjusted EBITDA at INR 194 crore. Margin expansion continues in both food delivery and quick commerce. Quick commerce business gets to Adjusted EBITDA breakeven milestone for the month of March 2024.
● Rapid store expansion underway in quick commerce business. Aiming for 1,000 stores by March 2025.
“We could not have imagined the current state of all four of our businesses – food delivery, Blinkit, Going-out and Hyperpure. I think the team has executed phenomenally well over the last couple of years, and continues to stay (more or less) focused with their ears to the ground. Our journey in the last two years has, in so many ways, increased the expectations our stakeholders have from us and we will try our best to live up to them,” said Deepinder Goyal, Founder and CEO, Zomato.
“One of the key vectors for growth for us right now is store expansion. In Q4FY24, we added 75 net new stores taking our total store count to 526. In the current quarter (Q1FY25), we expect to add another 100 stores. At this point, we are aiming to get to 1,000 stores by the end of FY25,” said Albinder Dhindsa, Founder and CEO, Blinkit on profitability.
“On the profitability front, consolidated Adjusted EBITDA was INR 194 crore and improved by INR 369 crore as compared to the same quarter last year. Quick commerce business turned Adjusted EBITDA profitable in the month of March and Hyperpure losses also reduced meaningfully,” said Akshant Goyal, CFO, Zomato on ESG.
In Q4FY24, 28 per cent YoY GOV growth was driven by 5 per cent YoY AOV growth and 23 per cent YoY Order growth.
“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,” said Deepinder Goyal, Founder and CEO, Zomato Quick commerce (Blinkit).
Growth driven by store expansion
75 net new stores were added in Q4FY24, taking the total store count to 526. This is more than the number of stores added in the three preceding quarters cumulatively. 100 more stores expected to be added in the current quarter (Q1FY25) and aiming to get to 1,000 stores by the end of FY25.
“In addition to scaling up the existing store network and use cases, we will be adding more use cases so the Blinkit platform is even more useful in the everyday lives of our customers. We plan to stick to making our service even more reliable and loved for our customers. And just like today, we will strive to maintain an edge over competition for the quality and innovation that we stand for,” said Albinder Dhindsa, Founder and CEO, Blinkit ESG.
Zomato now has the best ESG rating amongst major global food delivery companies across the world. 20,000+ delivery partners across cities trained to perform first-aid and CPR in case of any on-road casualties as part of the ‘first-responder training program’ launched last quarter. Delivery partners are voluntarily registering for this training program as they understand the importance of timely first-aid which can make all the difference in saving a life.
Zomato has been building a proprietary network of 650+ on-ground weather stations (the largest private infrastructure of this kind in the country in our view) that provides precise and real-time data on key weather parameters such as temperature, wind speed, rainfall, etc. This network was created by Zomato to help in making the right business decisions and serve customers better. As a Zomato Giveback, this data is now freely accessible to anyone who wishes to leverage it, through an API available on weatherunion.com.
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