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Online food delivery giant Zomato has published its Q2 results where the company reported a significant decline in losses and overall improvement in the business.
The company successfully completed the acquisition of the q-commerce platform Blinkit on 10th August 2022, so its consolidated financials for the quarter included ~50 days of Blinkit's financials as well.
Consolidated revenues witnessed a robust growth of 62.2% during the quarter as the figure for the quarter stood at Rs 1,661.3 crores. Revenues from the food delivery business surged 26.7% during the quarter while the same from Hyperpure tripled YoY. Blinkit contributed Rs 142 crores to the consolidated revenue.
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Adjusted EBITDA loss declined 38.1% during the quarter as the food delivery business reported a positive EBITDA for the first time. Some segments, despite posting negative EBITDA, posted a decline in EBITDA loss, but the EBITDA loss of Hyperpure surged 77%.
The Gross Order Value (GOV) of the company grew 23% YoY to Rs 6,631 crores as its average monthly transacting customers improved from 15.5 million last year to 17.5 million this year.
Finance and Depreciation costs surged the highest as they jumped 284% and 178% respectively. As such, total expenses surged 31% against a 62% growth in revenues, resulting in a 42% reduction in net losses as the figure came in at Rs 250.8 crores.
"We have strategically chosen to trade low quality growth for better unit economics. That’s part of our long term strategy to build a high quality, high growth business. At the same time, we are not shying away from investing behind high quality compounding growth. We also continue to invest in long term capability building, as well as market expansion initiatives like Hyperpure, Zomato Instant, and Intercity Legends, etc." said Deepinder Goyal, co founder and CEO of Zomato.
The results turned investors hopeful as the stock opened today at a premium of 16.2%. The stock currently trades around Rs 72.25 per share, up nearly 13% from Friday's close.
Article by Aman Agarwal.
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