Food delivery app Zomato has finally turned profitable, reporting a consolidated net profit of Rs 2 crore for the quarter ended June 2023.
Great surge in revenue
It reported a loss of Rs 189 crore in the quarter ended March.
However, revenue from operations stood at Rs 2,416 crore, up nearly 71% YoY against Rs 1,414 crore reported in the year-ago period.
Blinkit turns positive
The company said that Blinkit, the quick commerce business it owns, has turned contributive positive for the first time ever in the month of June.
The adjusted revenue excluding the quick commerce business stood at Rs 2,402 crore which was up 33% YoY.
Gross order value
Gross order value (GOV) went up to Rs 7,318 crore as opposed to Rs 6,425 crore in the corresponding quarter of the previous fiscal.
It also outdid the Rs 6,569 crore reported in the March quarter.
This growth came on the back of a strong growth in the number of orders along with an uptick in average order value.
Demand has seen a recovery since February this year which continued into Q1FY24.
Customer base
The average monthly transacting customers were at 1.75 crore in Q1FY24 versus 1.67 crore in the year-ago period.
The adoption of the Gold program led to more frequent orders.
This subscription now contributes to 30%+ of GOV in the food delivery business.
Address to investors
Managing Director and CEO Deepinder Goyal said, “We have been working hard to make our business less complex, and putting the right people at the right spots within our businesses.
These things do not have definite/measurable impact, and I can in hindsight say that most of our seemingly “risky” bets have changed the trajectory of the business significantly, much faster than we expected”.
Profitability
Akshant Goyal, Chief Financial Officer shared that they expect business to remain profitable going forward.
“Knowing what we know today, we believe we will continue to deliver 40%+ YoY topline (Adjusted Revenue) growth for at least the next couple of years,” Goyal said.
