Friday, August 12, 2022

Zomato halves its Q1 losses: sales up 67%

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Online food delivery platform Zomato on Monday it reported Rs 185.7 crore in consolidated loss for the quarter ended June 30, compared to a loss of Rs 359.7 crore in the previous quarter.

Consolidated sales saw a 67 percent increase to Rs 1,413.9 crore from Rs 844.4 crore (same quarter last year), and 16.68 percent higher than Rs 1,211.8 crore in the last reported quarter.

Revenue growth was driven by a 10% quarterly growth in gross order value (GOV) to Rs 64.3 billion in Q1FY23 and growth in revenue per order. Government growth was in turn driven by a robust growth in order volumes and a slight increase in average order values ​​compared to the previous quarter,” said Zomato CFO Akshant Goyal.

Shares of Zomato closed on Monday at Rs 46.35, down 1.07 percent. The market cap of the company is almost Rs 36,494.39 crore. The company said losses for Blinkit decrease every month — from Rs 2,040 million in January to Rs 929 million in July.

“Loses have decreased due to operating leverage and improved execution. As the GOV per day per store increases, the losses are diminishing given the high operating leverage in the business,” it added.

The company recovered losses in food delivery. Overall, the adjusted loss in EBITDA decreased to Rs 150 crore in Q1FY23 versus Rs 220 crore in Q14FY22 and Rs 170 crore in Q1FY22.

“The real driver here is focus and mindset. Our focus on profitability has sharpened in recent months due to the change in the market context, without compromising our focus on growth,” said Founder Zomato and CEO Deepinder Goyal.

He said the company is focused on spending wisely and continually reinforcing a low-cost culture — “especially in a company like ours that is currently loss-making.”

“As we do this, we will continue to focus on retaining (and hiring) talented employees – we understand that a smart, humble and curious team can be our one and only moat in the long run,” added Goyal.

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