Zomato reports Rs 36 Cr profit in Q2 FY24

After turning profitable for the first time on a quarterly basis, foodtech major Zomato has escalated its profit after tax by 18-fold to Rs 36 crore in the second quarter of the current fiscal year or Q2 FY24. If we compare year-on-year, the firm reported Rs 251 crore loss in Q2 FY23.

The Gurugram-based company has registered nearly 18% jump in its revenue to Rs 2,848 crore in the September quarter against Rs 2,416 crore during June Quarter, according to a stock exchange filing. During the last quarter, the firm’s total revenue stood at Rs 3,060 crore including other income of Rs 212 crore.

According to Zomato, India's food ordering and delivery business contributed most in profits while quick commerce biz contributed most in losses.

B2B supplies Hyperpure and Blinkit contributed Rs 745 crore and Rs 505 crore, respectively to the collections during Q1 FY24. In the previous quarter, their revenue contribution stood at Rs 617 crore in Rs 385 crore respectively.

Read more: Blinkit operating revenue surges 3X to Rs 724 Cr in FY23

On the expenditure front, the cost of materials surged 19.9% to Rs 674 crore during the last quarter from Rs 562 crore in the previous quarter. Employee benefits also surged 23.4% to Rs 417 crore during the period.

Advertisement & sales promotion costs also jumped 13.1% to Rs 355 crore whereas delivery and related costs surged 13.5% to Rs 919 crore.

In a nutshell, Zomato spent Re 0.99 to earn Re 1.

Zomato recently launched parcel debiley platform Xtreme. The service will allow merchants to send and receive small parcels that will enable the company to diversify its revenue stream and also make use of its wide network of delivery partners.

With this, the company will compete with its arch-rival Swiggy’s parcel moving feature: Swiggy Genie, Porter and Dunzo, Flipkart-backed Shadowfax and various new and traditional logistics companies.