Zomato Q1 Results: Turns Profitable for the First Time with 70% Revenue Rise

On Thursday, Zomato, the food delivery platform, disclosed its Q1 earnings for FY24. The company achieved a net profit of Rs 2 crore, a significant improvement from the Rs 186 crore loss in the same period last year.  

In FY24 during the first quarter, the consolidated revenue from operations stood at Rs 2,416 crore, a significant surge from Rs 1,414 crore in the corresponding period of the previous year. 

However, total expenses were also higher, amounting to Rs 2,464 crore, compared to Rs 1,721 crore in the same quarter of the previous year. The operating loss of the company narrows from Rs 307 crore to Rs 48 crore. 

Zomato, which operates the grocery delivery service Blinkit also mentioned in its filing, that they have achieved a significant milestone for its quick commerce (Blinkit) business. For the first time ever, in the month of June 2023, the Blinkit segment turned profitable and contributed positively to the company’s financial performance. 

In a letter addressed to shareholders, Zomato’s Managing Director & Chief Executive Officer (CEO), Deepinder Goyal, expressed the company’s commitment to simplifying its business operations and strategically placing the right personnel in critical roles across its various ventures. 

Back in May, he had stated with confidence that the company was on track to achieve overall profitability within the next four quarters. 

Following the announcement of its June quarter results after market hours yesterday, the company’s stock reflected today and witnessed a significant surge of 14% during the early morning trading session. The stock also reached a new 52-week high of Rs 98.39 per share. 

A closer analysis of today’s share volumes reveals a remarkable increase, surpassing 1.90 times the average trading volumes on the BSE. As of the present moment, while writing this article, the company’s shares have risen by Rs 9.78, currently trading at Rs 96 on the BSE. 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet, and is subject to changes. Please consult an expert before making related decisions.