Loss Narrows To Rs 251 Crore, Revenue Zooms 63 Per Cent

Zomato, India’s online food delivery services provider, on Thursday announced its consolidated net loss for the quarter ended September 2022 (Q2) narrowed to Rs 250.8 crore against Rs 434.9 crore logged in the same quarter last year. The company’s revenue from operations zoomed 63 per cent to Rs 1,661.3 crore from Rs 1,024.2 crore in the corresponding quarter last year, Zomato said in an exchange filing.

The company said adjusted Ebitda loss increased to Rs 192 crore in Q2FY23 as compared to Rs 150 crore in Q1FY23. The increase in loss was on account of consolidation of quick commerce losses.

For the food delivery business, the gross order value (GOV) growth was 3 per cent QoQ and 23 per cent YoY driven by growth in both order volumes and average order value. Growth in revenue per order led to a higher adjusted revenue (for food delivery) growth of 8 per cent QoQ and 27 per cent YoY.

The company said GOV for Blinkit, which Zomato acquired in August this year, grew 26 per cent quarter-on-quarter to Rs 1,482 crore, while the revenue grew 44 per cent quarter-on-quarter. Adjusted Ebitda loss in quick commerce reduced to Rs 259 crore from Rs 326 crore in the previous quarter.

Deepinder Goyal, CEO, Zomato, said, “While our food delivery business has been growing and steadily moving towards profitability, I believe there is room for the business to grow much faster than what it is currently trending at. I don’t know if I can attribute this to the macro environment — primarily because I know for a fact that we could have innovated and executed better in the last couple of months. The restaurant and food delivery industry in India is still nascent and we need to relentlessly execute to tap into the large opportunity. I don’t want ‘macro headwinds’ to be an excuse for us to innovate less. As far as quick commerce is concerned, we haven’t seen any/much slowdown in the business. But that could be the low base effect, in addition to relatively low penetration due to the early stage nature of that business. We have a great team with the potential to execute 100x better and I believe doing that will lead to even more growth across all our businesses.”

Shares of Zomato were closed at Rs 63.95 apiece, down 2.07 per cent on the BSE on Thursday.