Zomato Narrows Loss By Nearly Half In March Quarter
New Delhi: Homegrown food delivery platform Zomato narrowed its net losses for the quarter ended 31 March by around 48% to ₹188.2 crore compared to a loss of ₹359.7 crore in the year ago following a surge in total revenue.
The Gurugram-headquartered company cut its losses by 46% sequentially from ₹346.6 crore in the December quarter, according to its latest regulatory filing. Zomato’s operating revenue during the March quarter rose 70% from a year ago to ₹2,056 crore. The company posted ₹1,211.8 crore in revenues in January-March 2022.
On Friday, the company’s shares ended the day’s trade up 1.72% to ₹64.54 apiece on the BSE.
Zomato said that its business excluding its quick commerce unit BlinkIt, achieved adjusted earnings before interest, taxes, depreciation and amortization (Ebitda) positive. The firm calculates adjusted Ebitda as traditional Ebitda, adding share-based payment expenses, and subtracting the rent amount paid for the period.
Profitability was primarily driven by the company’s food delivery segment, which delivered an adjusted Ebitda of ₹78 crore in the quarter. Zomato said the difference between adjusted Ebitda and net profit has narrowed significantly.
Zomato’s adjusted revenue from its food delivery vertical, which accounted for a majority of its topline, was at ₹1,530 crore, down from ₹1,565 crore in the previous quarter, primarily due to the overall slowdown in India’s food delivery segment, which also brought down its gross order value to ₹6,559 crore in Q4 from ₹6680 crore in Q3.
“The quarterly growth is low due to demand slowdown witnessed in our business from late October till the end of January. As we mentioned in our last letter, we had started seeing green shoots of recovery in the first week of February,“ Deepinder Goyal, founder and chief executive officer, Zomato, said.
Zomato’s business-to-business verticals, Hyperpure and Blinkit, posted adjusted revenues of ₹478 crore and ₹363 crore, respectively. “In food delivery we will continue with the same mindset as we look to expand adjusted Ebitda margin further," said Goyal.
Catch all the
Corporate newsand Updates on Live Mint. Download The
Mint News Appto get Daily
Market UpdatesBusiness News.
Next Story
No Network
Server Issue
Internet Not Available
Chinas Response To U.S. Tariffs: Threats And Predictions
Following the recent announcement by the Biden administration to impose new tariffs targeting $18 billion worth of Chine... Read more
U.S. Military Aid To Ukraine: Implications And Impact
In the shadow of escalating tensions and ongoing conflict in Eastern Europe, U.S. Secretary of State Antony Blinken's re... Read more
UN Secretary-General Urges Humanitarian Ceasefire In Gaza Amid Escalating Violence
As violence continues to escalate in Gaza, António Guterres, the Secretary-General of the United Nations, has issued a ... Read more
Driving Economic Transformation: China's Rmb1 Trillion Debt Sale
The Strategic Allocation of Debt Proceeds: China's debt proceeds are earmarked for strategic sectors that are poised to... Read more
US Asserts Naval Presence In Taiwan Strait Amidst Rising Tensions With China
Recent geopolitical events have once again brought the Taiwan Strait into the spotlight, as a US warship navigated its w... Read more
Private Schools' Response To Labour Tax Changes: Bolstering Advance Payment Schemes
As the political landscape shifts, private schools face impending tax changes proposed by the Labour Party. In anticipat... Read more