Food delivery platform Zomato on May 19 reported consolidated net loss for the March quarter at Rs 188.2 crore that narrowed from a loss of Rs 359.7 crore in the same quarter last year.
Revenue from operations came in at Rs 2,056 crore, rising 69.66 percent from Rs 1,211.8 crore in the corresponding quarter year ago, Zomato said in a regulatory filing.
The company said its business, excluding quick commerce, turned adjusted EBITDA positive in the March quarter, driven by the food delivery business generating Rs 78 crore of EBITDA. Zomato added that it plans to get positive adjusted EBITDA and PAT on a consolidated basis including quick commerce in the next four quarters.
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Deepinder Goel, Founder of Zomato, said the company will get to the goal by increasing profits in the food delivery business and reducing losses in the quick commerce (Blinkit) business.
“Over the last five quarters, we have improved our margins meaningfully while further strengthening our market position. We will continue with the same mindset as we look to further expand the Adjusted EBITDA margin (from the current 1.2 percent) to our stated goal of +4-5 percent of GOV (which would translate to Rs 1,000 to 1,300 crore of annual cash operating profit at the current scale of the food delivery business),” he said in a release.
Zomato saw the gross order value of its food delivery business shrink about 1 percent sequentially to Rs 6,569 crore in the March quarter due to an industry-wide slowdown and its exit from 225 cities in the previous quarter. Average monthly transacting users also fell from 1.74 crore to 1.66 crore sequentially.
Despite many saying ONDC is a threat to Zomato's business, Goel said he welcomes all innovations that could help the restaurant industry in India grow. "We continue to watch the ONDC progress closely and learn from it," he added.
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