Food delivery platform Zomato reported its first quarterly consolidated net profit of Rs 2 crore on Thursday. The company had reported a loss of Rs 186 crore in the year-ago period.
Aided by a tax gain and increased orders on its food delivery and quick commerce platforms, Zomato reported a revenue of Rs 2,416 crore—an increase of 70.9 per cent from the year-ago period.
The company, which also runs the grocery delivery service Blinkit, reported a EBITDA (Earnings before interest, taxes, depreciation, and amortisation) margin of 2.5 per cent. In the March quarter, the margin was 1.2 per cent.
"We are also confident that we will get to Adjusted Ebitda break-even at a cumulative investment much lower than $320 million that we had indicated in August 2022," Blinkit's Albinder Dhinsa said in a letter to the shareholders.
Chief financial officer of Zomato, Akshant Goyal, said the company was expecting to turn profitable only by September, but added that they were being conservating with the guidance.
"Realistically speaking, we were expecting to hit this milestone in the September quarter (Q2FY24), and we were being conservative in our earlier guidance. However, some critical parts of the team across our businesses out-executed our expectations/plans, and some of our initiatives delivered better outcomes than we had expected," Goyal said.
The company also witnessed an increase of 5.6 per cent monthly transacting users when compared to the March quarter.
Gross order value (GOV) of its food delivery business increased by 13.2 per cent while GOV for Blinkit increased by 82.6 per cent year-on-year.
"Blinkit's GOV is very close to Zomato's GOV in some of the large cities where we have an overlapping presence," Zomato CEO Deepinder Goyal said.
Shares of Zomato saw an increase of 1.65 per cent and closed at Rs 86.45.