Zomato declared a consolidated net profit of Rs 138 crore for the December quarter.
The company reported a combined net loss of Rs 347 crore in the same quarter last year, according to a regulatory filing.
Consolidated income from operations in the third quarter of the current fiscal year was Rs 3,288 crore, up from Rs 1,948 crore the previous year, the company said.
Total costs were higher, totaling Rs 3,383 crore. The previous year’s figure was Rs 2,485 crore, according to the company.
The bolstered performance of Zomato is attributed to the strengthening of its economies of scale, evident in the increased per-order profitability, and a surge in subscriptions to its loyalty program.
In a letter to shareholders, Zomato’s management attributed the improving margins to factors such as enhanced ad monetization and the introduction of platform fees. Rakesh Ranjan, the company’s food delivery CEO, emphasised the ongoing strategic testing of platform fees, akin to the Gold program, to optimise both growth and margin expansion.
The company remains committed to ensuring the viability and well-being of all stakeholders, including customers, restaurant partners, and delivery partners, amidst its tactical initiatives for growth and profitability optimization.
Over the past six months, Zomato’s stock price has surged by more than 50 per cent, reflecting renewed investor confidence after a period of uncertainty surrounding profitability and pre-IPO investor selling.
Zomato said it continued to build on the momentum in the first two quarters of FY24. Gross order value (GOV) for the quarter across B2C businesses grew 47 per cent YoY (13 per cent QoQ) to Rs 12,886 crore.
On an annualised basis, Zomato crossed Rs 50,000 crore of GOV in our B2C businesses. Food delivery GOV grew 27 per cent YoY (6.3 per cent QoQ), quick commerce GOV grew 103 per cent YoY (28 per cent QoQ) and Going-out GOV grew 154 per cent YoY (26 per cent QoQ).
On the profitability front, consolidated adjusted EBITDA was positive for the third consecutive quarter at Rs 125 crore and improved by Rs 390 crore as compared to the same quarter last year.
