Driven by robust revenue growth Zomato on Friday posted a consolidated profit after tax (PAT) of Rs 36 crore for the second quarter (Q2) ended September. The online food delivery platform had reported a loss of Rs 251 crore for the corresponding quarter of the previous financial year.
Zomato's revenue from operations went up 71.46 per cent to Rs 2,848 crore in the quarter, while it was Rs 1,661 crore in the year-ago period. According to a regulatory filing, the company's total expenses were Rs 3,039 crore in Q2. In the year-ago quarter, it stood at Rs 2,092 crore.
Zomato also announced that its board has approved sale of entire voting rights constituting 30 per cent in ZMT Europe LDA, an associate company located in Portugal, for an aggregate sale consideration of 1.80 lakh euros (approx Rs 1,59,45,300). In a letter to shareholders, the company informed that its quick commerce business (Blinkit) has turned contribution positive for the first time, for the entire quarter.
The contribution margin as a percentage of gross order value (GOV) in the business improved from -7.3 per cent in Q2FY23 last year (when it acquired the business) to 1.3 per cent now in Q2FY24.
Deepinder Goyal, founder and CEO at Zomato, said, "The growth momentum we witnessed in Q1FY24 continued in Q2FY24 driven by healthy growth across all our businesses. On the profitability front, we posted a second consecutive profitable quarter with Adjusted EBITDA of Rs 41 crore as compared to Rs 12 crore profit in the previous quarter (Q1FY24) and a loss of Rs 192 crore last year same quarter (Q2FY23)." Earnings Before Interest, Taxes, Depreciation, and Amortisation, or EBITDA, is a statistic used to assess a company's operating performance.
Albinder Dhindsa, founder of Blinkit, said the GOV growth (for Blinkit) was 86 per cent on a YoY basis, as expected and in line with the past. "GOV growth was largely driven by same store sales growth as we continue to focus on serving more customer needs and ensuring consistency of service levels. We also saw a net addition of 28 new stores during the quarter, taking our overall store count to 411 stores at the end of the quarter," he added.