Zomato, a major player in the foodtech sector, announced on Thursday its third successive quarter of profitability. For the December quarter (Q3) of the fiscal year 2023-24 (FY24), the company reported a consolidated profit after tax (PAT) of INR 138 Cr. This achievement was driven by a significant expansion in its quick commerce division.
The company’s Profit After Tax (PAT) surged by 283% compared to the INR 36 crore recorded in the previous quarter. In Q3 FY23, the company had reported a net loss of INR 346.6 crore.
Continue Exploring: Zomato reports remarkable surge in profit, achieving second consecutive profitable quarter in FY24
Zomato’s operating revenue surged to INR 3,288 crore in Q3 FY24, up from INR 2,848 crore in Q2 FY24. This represented a 68% year-on-year (YoY) increase from the operating revenue of INR 1,948.2 crore in Q3 FY23.
Zomato reported a 47% year-over-year (YoY) increase and a 13% quarter-on-quarter (QoQ) rise, reaching INR12,886 Cr in gross order value (GOV) for its B2C businesses. Nevertheless, the company observed subdued growth in its food delivery segment, attributing it to a restrained demand environment within the broader restaurant industry.
In Q3 FY24, the company saw its food delivery gross order value (GOV) increase by 27% year-over-year (YoY) and a modest 6.3% quarter-on-quarter (QoQ) to INR 8,486 Cr. Meanwhile, Zomato’s quick commerce business Blinkit experienced robust growth, with a 103% YoY and 28% QoQ rise in GOV to INR 3,542 Cr in the same period.
Following its first-time positive contribution in Q2 FY24, Blinkit’s contribution as a percentage of gross order value (GOV) rose to 2.4% in Q3, up from 1.3% in the previous quarter.
In terms of profitability, Zomato’s consolidated adjusted EBITDA remained positive for the third consecutive quarter, reaching INR 125 Cr, a significant improvement from the INR 265 Cr loss reported in the same quarter of the previous year.
Zomato attributed Blinkit’s growth primarily to the strong increase in demand driven by various festivals and occasions during the quarter.
Continue Exploring: Blinkit records first positive contribution, anchoring Zomato’s quick commerce success
“This growth was also fuelled by having the right assortment which addressed the most pertinent needs of our customers,” said Zomato in its statement. “The team also ensured consistently high service levels through minimal stock-outs and adequate delivery partner availability during periods of peak demand.”
In Q3, Blinkit also expanded its network by adding 40 net new stores, bringing the total store count to 451 by the end of the quarter.
After the Q3 earnings announcement, Zomato’s shares surged by 4.6% to INR 147 on the BSE on Thursday.
Continue Exploring: Zomato allots 10.88 Crore equity shares for employee stock options ahead of Q3 FY24 earnings
