Zomato Q1 results: Net loss narrows to Rs 186 cr; revenue rises 68%
Food delivery firm Zomato Ltd, backed by China’s Ant Group, said on Monday its consolidated quarterly loss narrowed helped by an increase in orders for restaurant meals on its platform.
Net loss was at Rs 186 crore for the three months ended June 30, compared with a loss of Rs 356 crore a year ago, the company said in a regulatory filing. The company’s consolidated revenue from operations rose, which mostly comes from its mainstay food delivery and related fees it charges restaurants for using its platform, 68% to Rs 1,414 crore as against Rs 844 crore in Q1FY22.
On Monday, the company’s scrip on BSE closed 1% lower at Rs 46.35.
The Gurugram-based company, which operates in more than 1,000 towns and cities in India, also offers online table booking and special discounts at select restaurants.
Gross order value – or the total value of all food delivery orders placed online on Zomato’s platform – for the first quarter rose 41.6% to Rs 6,430 crore from a year ago, with average monthly transacting customers at 16.7 million.
While Zomato has disclosed quarterly losses since going public in 2021, it has seen a consistent rise in orders.
“Margins are getting negatively impacted due to higher fuel costs and wage inflation,” Chief Executive Deepinder Goyal said in a statement, adding that monthly transacting customers were likely to drive volume growth.
The domestic food delivery market is expected to grow three times over the next five years, helped by rising order frequency and user addition, with Zomato expected to maintain a market share in the range of 45-50%, analysts at Credit Suisse said in a note last month.
(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
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