Foodtech and quick commerce platform Zomato on Thursday released its financial results for the third quarter of the ongoing fiscal year (Q3 FY24). The results showcase a decent growth in scale along with a 3.8X jump in profits.
Zomato’s revenue from operations grew 15.4% to Rs 3,288 crore in Q3 FY24 in contrast to Rs 2,848 crore Q2 FY24, as per the firm’s consolidated financial results sourced from National Stock Exchange.
Compared to the third quarter of the previous fiscal (Q3 FY23) year, its operating revenue went up by 68.8% from Rs 1,948 crore.
Zomato operates several units including a food marketplace platform connecting end users, restaurants, and delivery personnel. Hyperpure provides farm-to-fork supplies to restaurants and businesses while Blinkit offers kirana, FMCG and other essentials within 10 minutes.
Meanwhile, dining.out and Zomato Live let users discover restaurants, reserve tables, and book tickets for entertainment events.
The firm made 51.8% of its total operating revenue via food ordering and delivery business, which grew 10.2% to Rs 1,704 crore in Q3 FY24 from Rs 1,546 crore in Q2 of the same financial year.
Collections from its Hyperpure supplies (B2B business) increased 15.3% to Rs 859 crore during the same period while quick commerce vertical (Blinkit) contributed Rs 644 crore to the group’s coffers. The remaining income came from the ‘Going-out’ segment and other operating activities during the quarter ending December 2023.
Additionally, Zomato also earned Rs 219 crore as non-operating income (mainly from interest and gains on financial assets) in Q3 FY24. As a result, its overall revenue crossed Rs 3,500 crore during the period.
Coming to expenses, delivery and related charges accounted for 31.6% in Q3 which surged 16.2% to Rs 1,068 crore. Purchase of stock (after adjustment of changes in inventories) inclined 16% to Rs 782 crore while employee benefits cost remained flat at Rs 423 crore during the quarter.
Zomato also spent Rs 374 crore on advertisement and promotions, akin to which its total expenditure rose 11.3% to Rs 3,383 crore in Q3 of FY24.
On the lines of rising scale, Zomato’s profits also jumped 3.8X to Rs 138 crore in Q3 against Rs 36 crore in the previous quarter. Last year in the same quarter (Q3 FY23), it booked Rs 347 crore in losses.
On a unit level, the company spent Rs 1.03 to earn a rupee in Q3 of FY24.
For the nine months ended period (Apr-Dec 2024), Zomato recorded Rs 8,552 crore revenue from operations with a profit of Rs 176 crore.
Zomato made its public market debut in July 2021 at a valuation of $12 billion and touched its peak of over Rs 150 per share in November 2021. Later, it dwindled under Rs 50 during July 2022.
Zomato got its momentum back in Q1 of FY24 when it recorded profits for the first time. Since then, the company attained nearly 3X surge in its share price and its current share price stands around Rs 144 a piece.
