Foodtech and quick commerce platform Zomato on Monday released its financial results for the fourth quarter of the ongoing fiscal year (Q4 FY24). With the steady expansion, the company has witnessed around 27% increase in its profit along with marginal growth in revenue.
Zomato’s revenue from operations grew 8.3% to Rs 3,562 crore in Q4 FY24 in contrast to Rs 3,288 crore in Q3 FY24, as per the firm’s consolidated financial results sourced from the National Stock Exchange.
With this, Zomato’s overall revenue for the fiscal year ending March 2024 jumped 71% to Rs 12,114 crore from Rs 7,079 crore in FY23.
Zomato operates several business units including a food marketplace, Hyperpure and quick commerce platform BlinkIt.
Income from food and delivery biz accounted for 48.8% in Q4 FY24 which grew 2.1% to Rs 1,739 crore in Q4 FY24 from Rs Rs 1,704 crore in Q3 FY24. The collections from Hyperpure supplies (B2B) and quick commerce vertical (Blinkit) grew 10.7% and 19.4% to Rs 951 crore and Rs 769 crore, respectively.
Earning from “Going-out” and other non-operating income took Zomato Group’s overall revenue to Rs 3,797 crore in Q4 FY24.
The cost for delivery and related charges formed 30.7% of the overall expenditure which increased 4.7% to Rs 1,118 crore in Q4 FY24. Its cost of procurement, employee benefits, advertising, and marketing pushed its overall expenditure to Rs 3,636 crore in Q4FY24 from Rs 3,382 crore in Q3FY24.
The optimum cost mechanism and increased scale helped Zomato to record a 26.8% hike in its profits to Rs 175 crore in Q4 FY24 from Rs 138 crore in Q3 FY24. On a unit level, the Gurugram-based company spent Rs 1.02 to earn a rupee in Q4 FY24.
As the Zomato story continues to unfold, it’s the Blinkit story that has become the one to watch, as the business turnaround there has surprised almost everyone. So much so that it has placed the spotlight firmly on Swiggy’s Instamart for being a laggard now. The ‘core’ delivery business continues to face challenges, and it seems very likely that it will be dwarfed by the rest of the services from Zomato, especially Blinkit, by this time next year. That, if and when it happens, would be a truly incredible achievement, and the biggest lesson from it might be to take Deepinder Goyal’s words more seriously. After all, he did say to wide skepticism at the time of the Blinkit acquisition, that this would be a strong growth business and profitable in the near future, and here were, less than 24 months after the same.
