Zomato Q1 loss halves to Rs 186 crore; revenue spikes 67%

Food delivery platform Zomato on August 1 reported a consolidated loss of Rs 186 crore for the quarter ended June (Q1FY23), which was nearly half of the loss of Rs 359 crore reported in the same period last year.

Its revenue from operations came in at Rs 1,413.9 crore, up 67.44 percent against Rs 844.4 crore logged in the year-ago quarter.

“Our focus on profitability has sharpened over the past few months with the change in market context, without compromising our focus on growth. We are doing that by assessing everything with a critical lens and allocating resources by taking a long-term view to sustainable growth, as well as profit,” said Deepinder Goyal, CEO at Zomato.

The company accepted that there is a negative impact on the demand side but said it was hard to quantify. Similarly, on the cost side, the margins are getting negatively impacted due to higher fuel costs and wage inflation, it added.

Zomato said average monthly transacting customers have increased by 36 percent year-on-year (YoY) while the average monthly order frequency has also increased by 10 percent during the same period.

Goyal also rebuffed corporate governance issues in the recently executed acquisition of Blinkit. He said the buyout happened after an “objective” evaluation. Moreover, he said, knowing the founder of Blinkit personally was a good thing.

The firm said the cash balance at the end of June 2022 was Rs 11,400 crore.