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Food delivery giant Zomato has been reporting net losses ever since it was listed, but the losses have been declining on a quarterly basis.
For the quarter ended in June 2022, the net loss came in at Rs 185.7 crores as opposed to Rs 343.10 crores reported in the corresponding quarter last year.
Revenues of the company reached 1,413.9 crores, up 67.44%, against Rs 844.4 crores reported last year in the same quarter. Other income of the company grew 133% to Rs 168.1 crores resulting in a total income of Rs 1,582 crores for the quarter.
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The Indian food ordering and delivery segment reported a 50% YoY growth in revenues while its other segments reported a growth of 29%. Hyperpure reported the best performance as revenue from it grew 263% to Rs 272.7 crores.
For the unversed, Hyperpure is a platform that allows restaurants to buy everything from vegetables, fruits, poultry, groceries, meats, and seafood to dairy and beverages. It works directly with farmers, mills, producers, and processors to source these products.
The company's total expenses grew 40.3% to Rs 1,767.7 crores as advertising expenses declined 7.9% while delivery-related and other expenses almost doubled.
Zomato achieved an EBITDA break even during the quarter. The gross order value for the quarter rose 41.6% to Rs 6,430 crore from a year ago, with average monthly transacting customers at 16.7 million.
"I would say there is definitely a negative impact on the demand side but it is hard to quantify that in our business at this point given multiple moving parts. Similarly, on the cost side, the margins are getting negatively impacted due to higher fuel costs and wage inflation. Having said that, the overall efficiency gains have helped us make good progress on improving contribution margins." CEO Deepinder Goyal said about the macro headwinds in the letter to shareholders.
Goyal also commented on the status of the Blinkit transaction where he said that the company received 97+% shareholders' approval in favor of the transaction and was awaiting approval from the stock exchanges.
The stock of Zomato, which had seen a significant decline in recent times, grew 20% in a single day yesterday to close at Rs 55.55 per share. The stock currently trades around Rs 53.80 per share, down 3%.
Article by Aman Agarwal.
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