Foodtech giant Zomato’s financial statements for the first quarter of FY25 report that its net profits have grown to Rs 253 crore from Rs 2 crore in Q1 FY24, while it jumped 45% QoQ from Rs 175 crore in Q4 FY24.
Revenue from operations surged 74% to Rs 4,206 crore in Q1 FY25 from Rs 2,416 crore in the corresponding quarter last fiscal while it grew 18% QoQ from Rs 3,652 crore in Q4 FY24.
The growth was driven by its quick commerce platform Blinkit whose gross order value (GOV) and revenue grew by over 22% QoQ while the food delivery vertical grew by 10% both QoQ and YoY.
The Gurugram-based foodtech major’s total expenses grew to Rs 4,203 crore from Rs 2,612 in Q1 FY24 and Rs 3,636 crore a quarter ago.
Rakesh Ranjan, chief executive officer (CEO) of Zomato’s food ordering and delivery business said, “Contribution margin reduced slightly Q-o-Q, from 7.5% to 7.3%, and we expect such minor fluctuations to continue going forward as well, driven by seasonality and multiple other factors. Having said that, we remain on track to getting to a 4-5% adjusted EBITDA margin.”
The company is at an annualized profit of Rs 1,200 crore since turning EBITDA positive last year.
The Deepinder Goyal-led company saw a GOV growth of 53% YoY to Rs 15,455 crore through its B2C verticals of food delivery, Blinkit, and Going Out.
Its Going Out business reached Rs 95 crore in revenue from Rs 93 crore in the last quarter and Rs 42 crore in the same quarter a year ago. It is now operating at a run-rate of over $500 million in annualised GOV.
The company’s B2B supplies vertical Hypersure’s revenue shot up by 27% QoQ to Rs 1,216 crore in Q1 FY25 from Rs 951 crore in the last quarter, while it was Rs 617 crore in the same quarter a year ago.
Akshant Goyal, chief financial officer (CFO), Zomato, said in a letter to shareholders, “On the profitability front, consolidated adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) increased by Rs 287 crore Y-o-Y to Rs 299 crore in Q1FY25 driven by margin expansion in all the four businesses.”
Zomato’s average monthly transacting customers for the food delivery vertical were 20.3 million as against 19 million in the preceding quarter. Between FY20 and FY24, the foodtech major’s GOV has grown at a compound annual growth rate (CAGR) of 30%.
Zomato’s shares hit a new 52-week high on Thursday rising 2% and trading at Rs 234 apiece with a total market capitalisation of Rs 2.05 lakh crore.
