Zomato posts Rs 2,416 Cr revenue in Q1 FY24, turns profitable

Zomato’s operating revenue surged 17.5% to Rs 2,416 crore during the first quarter of FY24 ending June 2023 compared to Rs 2,056 crore during the quarter ending March 2023 or Q4 FY23.

Importantly, the company reported a profit after tax of Rs 2 crore in Q1 FY24 against Rs 188 crore loss in Q4 FY23.

The NSE-listed company primarily drives its revenue from online platform services such as food ordering and delivery through its flagship application Zomato, B2B supplies which are handled by Hypepure, and quick commerce business (Blinkit).

Zomato’s food ordering and delivery biz accounted for 56.8% of the operating revenue. This income grew 17% to Rs 1,372 crore during the first quarter of FY24. While B2B supplies Hyperpure and Blinkit contributed  Rs 617 crore and Rs 385 crore, respectively, to the collections during Q1 FY24.

The company also has non-operating revenue which increased by 6.5% to Rs 181 crore during Q1 FY24.

Delivery-related costs formed 31% of the overall expenses. This cost increased 27% to Rs 810 crore during Q1 FY24 from Rs 719 crore Q4 FY23. Its employee benefit remained flat at Rs 338 crore while the cost of material consumed surged 28% QoQ to Rs 562 crore during the same period.

Zomato added Rs 314 crore towards advertisement and promotion which steered its total cost to Rs 2,612 crore during Q1 FY24. With significant quarterly growth and good control over expenditure, Zomato registered a profit of Rs 2 crore during the first quarter of FY24.

Zomato closed FY23 with Rs 7,079 crore in revenue and Rs 971 crore in loss. Recently, its arch-rival Swiggy also claimed that its food delivery biz turned profitable as of March 2023.