Zomato Lost Rs 2.7 Crore/Day In Last 90 Days; But Revenues Increase by 62% To Reach Rs 1661 Crore
Zomato, the leading food delivery services provider in the Indian duopolistic market, said that its consolidated net loss for the quarter ending September 2022 narrowed to Rs 250.8 crore against Rs 434.9 crore registered in the same quarter last year.
Increase in Revenue
The Company said in an exchange filing that as compared to Rs 1,024.2 crore in the corresponding quarter last year, this quarter saw its revenue from operations zoom 62.2% to Rs 1,661.3 crore.
As compared to Rs 150 crore in Q1FY23, the “adjusted” EBITDA loss increased to Rs 192 crore in Q2FY23.
Looking from the bird eye view, the gross order value (GOV) growth for the food delivery business was 3 percent quarter-on-quarter (QoQ) and 23 percent year-on-year (YoY). This was 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 percent QoQ and 27 percent YoY.
Increase in Contribution Margin
In Q2, the contribution margin (as a percent of GOV) improved from 2.8 percent in Q1 to 4.5 percent. As a result, the food delivery adjusted EBITDA hit break-even in Q2.
Akshant Goyal, Chief Financial Officer, Zomato said that the “The increase in contribution margin is driven by improvements on both cost and revenue side. This has been the result of scale and heightened focus on profitability over the last few quarters. In our view, none of these improvements in contribution margin is temporary in nature”.
Speaking of Zomato acquired Blinkit, the GOV grew 26 percent QoQ to Rs 1,482 crore while the revenue grew 44 percent QoQ. Adjusted EBITDA loss in quick commerce reduced to Rs 259 crore from Rs 326 crore in the previous quarter.