Zomato posts first quarterly profit since 2021 listing

Zomato Q1 results:  Zomato reported its first quarterly profit on Thursday, helped by a tax gain and strong orders on its food delivery and quick commerce platforms. The company reported a profit of Rs 2 crore for the quarter ended June 30. Zomato, which also runs grocery delivery service Blinkit, said consolidated revenue from operations rose 70.9 per cent to Rs 2,416 crore in the first quarter.

That beat analysts’ average estimate of Rs 2,286 crore, according to Refinitiv IBES data.

Zomato expected to hit this milestone in the September quarter, said Chief Financial Officer Akshant Goyal, adding that they were being conservative with that guidance.

Zomato expects its business to remain profitable going forward while delivering a 40% year-on-year topline growth for at least the next couple of years, he said.

Gross order value (GOV) — the total value of all orders, a percentage of which Zomato gets as revenue — rose 13.9% in its food delivery business.

GOV for its quick delivery business Blinkit surged 82.6% in the quarter year-on-year, growing 4.6% sequentially. It faced a temporary business disruption in April resulting from a change in the payout structure for delivery partners.

We faced a challenging period of around 45 days when the number of overall gig workers available to work in our system was 15-20% lower than normal, said Albinder Dhindsa, Blinkit’s CEO.

Zomato bought Blinkit last June for Rs. 4,447 crores as its response to the fierce competition in the quick-delivery market.

“Blinkit’s GOV is very close to Zomato’s GOV in some of the large cities where we have an overlapping presence,” said Zomato CEO Deepinder Goyal.

The Gurgaon-based company posted a consolidated net profit of Rs. 2 crore for the quarter ended June 30, compared to a loss of Rs. 186 crore a year ago.

Zomato had a deferred tax gain of rupees this quarter.

Revenue from operations rose 70.9% to Rs. 2,416 crores in the quarter, beating analysts’ estimates, according to Refinitiv IBES data.

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