Foodtech

Zomato Records Unforeseen Q1 Profit of INR 2 Crore, Reports 71% Revenue Surge to INR 2,416 Crore

• ByStartupStory     |    August 3, 2023

In an unexpected turn of events, Zomato, headquartered in Gurugram, has unveiled a net profit of INR 2 crore for the first quarter of the ongoing financial year. The company’s revenue also surged by 70.9% to reach INR 2,416 crore, compared to the same period last year. This growth in demand can be attributed to moderating inflation and the robustness of the food delivery platform’s loyalty program.

During the corresponding quarter in the previous year, Zomato had recorded a net loss of INR 186 crore, while its revenue had amounted to INR 1,414 crore.

This impressive performance comes against the backdrop of new-age companies striving for profitability, especially in the midst of a challenging funding landscape.

Zomato has expressed its intention to sustain a trend of quarterly net profitability in FY24, building on its achievement of operational profitability in its food delivery segment during the prior fiscal year.

The company remains optimistic about its future prospects. “We expect our business to remain profitable going forward, and knowing what we know today, we believe we will continue to deliver over 40 percent year-on-year (YoY) growth in adjusted revenue for at least the next couple of years,” stated Akshant Goyal, Zomato’s CFO, in a letter addressed to shareholders. It had already announced in the last quarter of FY23 that its entire business, except quick commerce, had achieved this significant milestone.

Over the past two months, Zomato’s stock price has rebounded, reaching the upper limit of its initial public offering price of INR 76. The stock had faced a challenging period for nearly a year due to concerns surrounding its path to profitability and the divestment by its pre-IPO investors aiming to capitalize on gains within a fluctuating market for technology companies.

On August 3, the stock concluded trading at INR 86.45 per share on the Bombay Stock Exchange (BSE), marking a 1.83% increase from the previous closing price.

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