Food delivery platform Zomato narrowed its net loss for the quarter ended 31 March 2023 to Rs 188.2 crore against a loss of Rs 359.7 crore during the same quarter last year.
Revenue from operations rose 69.7% to Rs 2,056 crore against 1,211.8 crore year-on-year, aided by an uptick in revenue from its food delivery business. It was up 19.2% at Rs 1,530 crore.
Shrugging off the overall slowdown in the food delivery segment that hit the foodtech industry in the last couple of quarters, Zomato’s gross order value was also up 12.2% to Rs 6,569 crore against Rs 5,853 crore YoY.
The company is now aiming to achieve positive adjusted Ebitda and net profit on a consolidated basis, including BlinkIt’s operations, in the coming four quarters. On the operational front, Zomato was in-line with its earlier commitment, and said it broke even excluding its quick commerce business (Blinkit). It reported a Rs 28 crore Ebitda (earnings before interest, taxation, depreciation and amortisation) for Q4FY23.
According to the company, its adjusted Ebitda loss on a consolidated basis stands at Rs 175 crore compared to Rs 225 crore YoY.
To be sure, Zomato claims to calculate Ebitda after adding back the difference in share-based payment expense and the rental for the period under review.
“The quarterly growth is low because of the demand slowdown we witnessed in our business from late October last year till the end of January this year. As we had mentioned in our last letter, we had started seeing green shoots of recovery in the first week of February 2023," said Deepinder Goyal, founder and chief executive officer (CEO) of Zomato.
Zomato’s food delivery business was followed by its business-to-business arm Hyperpure and Blinkit, which brought in adjusted revenues of Rs 478 crore and Rs 363 crore, respectively.
“In food delivery business, we will continue with the same mindset as we look to further expand the adjusted Ebitda margin (from the current 1.2%) to our stated goal of +4-5% of GOV (which would translate to over Rs 1,000-1,300 crore of annual cash operating profit at the current scale of the food delivery business),” said Goyal.