Zomato delivers 283% on-quarter spike in Q3 profit

Food delivery company Zomato’s third-quarter earnings beat the estimates on the back of robust growth in food delivery and hyperpure businesses.

Net profit jumped nearly 4x (283%) quarter-on-quarter (QoQ) to Rs 138 crore. An ET Now poll saw the figure around Rs 36 crore. The company had posted a loss of Rs 347 crore in the last year period.

Revenue from operations in the third quarter increased 69% year-on-year to Rs 3,288 crore.

The food delivery business GOV (gross order value) grew 27% year-on-year (YoY) in the reporting quarter. The company expects the segment’s GOV to continue growing at over 20% YoY, and perhaps accelerate further if it sees more than expected market share gains and the revival in macro consumer demand.

The quick commerce GOV more than doubled YoY. Zomato said Blinkit’s losses continue to decline and it is on track to meet the guidance of Adjusted EBITDA break-even on or before Q1FY25.

The food delivery revenues increased 29% YoY to Rs 2,025 crore and quick commerce revenues jumped 114% YoY to Rs 644 crore.

The quick commerce business growth was largely driven by the robust uptick in demand seen in the festive season and other events like the World Cup in the quarter. “This growth was also fuelled by having the right assortment which addressed the most pertinent needs of our customers,” Zomato said.

In Q3FY24, close to 70% of the stores were contribution-positive and 20% of these were operating at a 5%+ contribution margin resulting in a growing pool of contribution profit.

Hyperpure revenue soared 104% YoY to Rs 859 crore, driven by growth in both the core restaurant supplies business and the relatively newer quick commerce opportunity.

The monthly active restaurant base on Zomato has grown by 20%+ YoY in Q3FY24, led both by new restaurants opening up and the coverage of existing restaurants increasing.

On Thursday, Zomato shares closed 1.14% higher at Rs 142 on NSE.

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