Zomato on August 3 posted a net profit of Rs 2 crore in the first quarter of the current financial year and reported revenues of Rs 2,416 crore, up 70.9 percent from the year-ago period, as demand growth recovered on cooling inflation and strength of the food delivery platform’s loyalty programme.
During the same quarter last year, Zomato had posted a net loss of Rs 186 crore while its revenues stood at Rs 1,414 crore.
This improved performance comes at a time when new-age companies are vying for profitability amid one of the worst funding winters in recent years.
Zomato has been vocal about turning in a quarterly net profit in FY24, even as it first achieved the operational profitability of its food delivery arm in the previous financial year.
The company hopes to maintain its winning streak.
"...we expect our business to remain profitable going forward and knowing what we know today, we believe we will continue to deliver over 40 percent YoY topline (adjusted revenue) growth for at least the next couple of years," Akshant Goyal, CFO, Zomato said in the company's shareholder letter.
ALSO READ: Zomato Q1 Results: Food delivery back on growth track, gross order value rises 11%
In the March quarter of FY23, it declared that its entire business, except quick commerce, had attained the milestone.
In the past two months, the stock price has recovered to reach the upper band of the initial public offering of Rs 76. The stock was hammered for almost a year following concerns over uncertain path to profitability and selling by its pre-IPO investors, who looked to book gains in a choppy market for tech companies.
The stock closed at Rs 86.45 a piece on the BSE on August 3, up 1.83 percent from previous close.
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