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Food delivery giant Zomato published its Q4 results wherein it reported higher losses as compared to last year. However, the company also reported a sharp hike in revenues, as investors rushed to buy the stock, surging the price of the stock by over 10% in early trading hours today.
The company reported a 167.8% YoY increment in losses as loss for the quarter ending in March 2022 came in at Rs 359 crores against Rs 134.2 crores reported in the corresponding quarter last year. However, the company's revenues jumped 75% YoY from Rs 692 crores last year to Rs 1,212 crores this year.
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Gross Order Value grew 77% YoY to a record high of Rs 5,850 crores. Zomato had an EBITDA loss of Rs 449.7 crores, reporting a decline on a quarterly basis but almost trebling on a yearly basis.
Expenses of the company surged 92%, from Rs 885 crores last year to Rs 1,701 crores this quarter, as this caused the losses to widen. The average monthly transactions touched an all-time high of 15.7 million transactions.
The company also expanded its presence into 300 more cities as it now operates in 1000+ cities. “Reduction in losses will be driven by improvement in the food delivery business's contribution margin and operating leverage as our revenue grows faster than our fixed costs.”
Shares of Zomato had been considered a success after they were listed as the stock had shown significant movement and positive responses from investors. The stock had moved well throughout 2021 but started declining as soon as 2022 began.
Today, the stock saw a sharp surge as bulls surged the stock well over 10%. Within the first 30mins of trading, the stock touched a high of Rs 67.55 per share after which it declined a little. The share currently trades around Rs 64 per share, marking a loss of 54.8% to investors since the beginning of 2022.
Article by Aman Agarwal.
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