Zomato posts Rs 175 crore profit in Q4; eyes store expansion in quick commerce business

Zomato also said that its quick commerce arm Blinkit business turned adjusted EBITDA positive in March 2024.
Image used for representative purposes
Image used for representative purposesFile photo

BENGALURU: Food delivery platform Zomato on Monday reported Rs 175 crore net profit for the fourth quarter ended March 31. In the year-ago period it had posted a loss of Rs 188 crore. The platform's revenue from operations in the March quarter stood at Rs 3,562 crore, a 73% jump compared to Rs 2,056 crore in the same quarter last year.

Zomato also said that its quick commerce arm Blinkit business turned adjusted EBITDA positive in March 2024.

In his letter to shareholders, founder Deepinder Goyal said, "We are just grateful that the bet that we took on Blinkit worked out just fine .. We believe that we can continue to grow faster than the overall restaurant industry (and therefore power a significant part of the growth of the restaurant industry) if we continue to innovate using our customer-first principles, while creating value for all our other stakeholders – our restaurant partners, and our delivery partners."

Zomato also proposed to create an additional ESOP (employee stock ownership plan) pool of 2% of its outstanding share capital on a fully diluted basis. It allotted ESOP worth 18.26 crore shares to its employees, according to regulatory filings.   

"ESOPs are important to help build a culture of long-term thinking and innovation and create a ‘founder mindset’ amongst senior employees, which ultimately drives the right outcomes for long-term shareholder value creation. Also, in people-dependent businesses like ours, where great execution and constant innovation are the only determinants of survival, ESOPs are a great way to drive the high-performance culture that we thrive on. This new ESOP pool should be sufficient for us for at least the next five years," said Akshant Goyal, CFO, Zomato.

The platform's y-o-y topline growth also accelerated to 61% and bottomline continues to expand and grow with Adjusted EBITDA at Rs 194 crore. Its margin expansion continues in both food delivery and quick commerce.

Zomato also said that rapid store expansion is underway in the quick commerce business as it is aiming for 1,000 stores by March 2025.

"One of the key vectors for growth for us right now is store expansion. In Q4FY24, we added 75 net new stores taking our total store count to 526. In the current quarter (Q1FY25), we expect to add another 100 stores. At this point, we are aiming to get to 1,000 stores by the end of FY25," Albinder Dhindsa, Founder & CEO, Blinkit.

The platform's food delivery GOV (Gross order value) grew 28% YoY. It was driven by 5% YoY AOV (average order value) growth and 23% YoY order growth.

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