Online food delivery platform Zomato on Monday reported Rs 185.7 crore in consolidated loss for the quarter ending June 30, compared to a loss of Rs 359.7 crore in the previous quarter. The consolidated revenue saw 67 per cent increase at Rs 1,413.9 crore from Rs 844.4 crore (same quarter last year), and 16.68 per cent up from Rs 1,211.8 crore in the last reported quarter. “Growth in revenue was driven by 10 per cent QoQ growth in Gross Order Value (GOV) to Rs 64.3 billion in Q1FY23 and growth in revenue per order. GOV growth was, in turn, driven by robust growth in order volumes and mild growth in average order values as compared to the previous quarter,” said Zomato CFO Akshant Goyal.
Zomato’s shares closed at Rs 46.35 on Monday, down by 1.07 per cent. The company’s market cap is nearly Rs 36,494.39 crore. The company said that losses for Blinkit are coming down every month — from Rs 2,040 million in January to Rs 929 million in July.
The losses have come down owing to operating leverage and improved execution. As the GOV per day per store goes up, losses come down given the high operating leverage in the business,” it added. The company recovered losses in the food delivery business. Overall, adjusted loss in EBITDA narrowed to Rs 150 crore in Q1FY23 versus Rs 220 crore in Q14FY22 and Rs 170 crore in Q1FY22. “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,” said Zomato Founder and CEO Deepinder Goyal.
He said that the company is focused on spending wisely and continually reinforcing a lean cost culture — “particularly in a business like ours which is currently loss making”. “While we do this, we will continue to focus on retaining (and hiring) talented employees — we understand that a smart, humble and curious team can be our only real moat over the long term,” Goyal added.