Zomato’s loss eases to Rs 186 cr in Q1; revenue up 67% to Rs 1,413 cr
Food aggregator Zomato reported a consolidated loss of Rs 186 crore in the first quarter of 2022-23. Its losses eased on both year-on-year (YoY) and sequential bases. The company’s consolidated loss was Rs 359 crore in Q1FY22 and Rs 359.7 crore in Q4FY22.
Revenue for the June 2022 quarter came in at Rs 1,413.9 crore, up 67.45 per cent YoY and 16.7 per cent quarter-on-quarter (QoQ).
Zomato in a release said revenue growth was driven by a 10 per cent QoQ jump in gross order value (GOV) to Rs 64.3 billion in Q1FY23, and also growth in revenue per order. The GOV rise was, in turn, driven by robust growth in order volumes and mild growth in average order value over the previous quarter.
The management said on the profitability front, the food delivery business hit an important milestone last quarter by getting to adjusted Ebitda break-even. The contribution as a percentage of GOV increased to 2.8 per cent in Q1FY23, against 1.7 per cent in Q4FY22, driven by improvements on both cost and revenue sides.
Deepinder Goyal, founder and CEO, said: “The real driver here is focus and mindset. Our focus on profitability has sharpened over the past few months with the change in market context, without compromising our focus on growth. We are doing that by assessing everything under a critical lens and allocating resources by taking a long-term view to sustainable growth, as well as profit.”
The management flagged the impact of rising prices and inflation on operations. Akshant Goyal, CFO, Zomato, said: “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 margin is 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.”
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