Zomato posts ₹138 crore Q3 profit on strong Cricket World Cup, festive demand

Zomato's Q3 net profit of ₹138 crore marks significant turnaround

Published on: Feb 8, 2024, 16:03:24 IST

By HT News Desk

Prefer HTon Google

Share via

Copy link

Zomato reported a significant turnaround in its financial performance for the December quarter with a consolidated net profit of ₹138 crore, contrasting with a net loss of ₹347 crore in the same quarter the previous fiscal year.

The Online food delivery platform's consolidated revenue from operations in Q3 of the current fiscal rose to ₹3,288 crore from ₹1,948 crore in the previous year, reflecting robust growth.

However, total expenses increased to ₹3,383 crore compared to ₹2,485 crore in the corresponding period last year.

ALSO READ- Woman criticised for sharing screenshot of chat with Zomato delivery agent. Here's why

Consumer demands were higher during the men's Cricket World Cup, held between October 5 and November 19. This, coupled with the festive season – when Zomato and its rival Swiggy rake in a lion's share of their annual sales – contributed to boosting the topline.

ALSO READ- Zomato’s Deepinder Goyal buys land in Delhi’s Mehrauli for ₹50 crore

Zomato's contribution margin, a key profit metric, expanded to 7.1 per cent from 6.6 per cent in the second quarter, following the introduction of a fee for customers to use the food delivery platform.

The gross order value (GOV) at Blinkit, Zomato's grocery delivery business, more than doubled, while its mainstay food delivery business grew by 27 per cent for the quarter. This surge led to a 69 per cent increase in total revenue, reaching ₹3,288 crore.

ALSO READ- Sensex falls by 723 points after RBI keeps repo rate unchanged; Nifty at 21,717

However, Zomato noted that growth in its food delivery segment fell below expectations due to "muted" demand. The company anticipates the GOV to increase by more than 20 per cent in the coming quarters.

(Inputs from wire)

ABOUT THE AUTHOR
HT News Desk
Follow the latest breaking news, major developments and agenda-setting stories from India and around the world with the newsdesk at Hindustan Times. Operating round the clock, the desk brings together experienced editors, reporters and correspondents to deliver fast, accurate and contextual reporting across subjects that influence public policy, governance, business, society and international affairs. The HT News Desk covers politics, elections, government policies, the economy, business and markets, science and technology, the environment, law and order, infrastructure, education, climate issues and geopolitics, while closely tracking developments across states, institutions and global capitals. The team also leads coverage of major breaking news events, policy announcements, court proceedings, natural disasters, public emergencies and significant international developments. Reports published by the newsdesk are based on information gathered from reporters on the ground, official statements, government agencies, court records, regulatory filings, recognised institutions and other authoritative sources. Stories undergo editorial scrutiny and verification processes to ensure accuracy, fairness and relevance, and are updated as events evolve and additional information becomes available. Whether covering a key political decision in New Delhi, an economic policy shift affecting millions, a landmark court ruling or a major global event, the HT News Desk aims to provide readers with reliable, fact-based journalism that delivers not only the latest developments but also the context and analysis needed to understand their wider implications.Read More

Zomato

Stay updated with the latest Business News on Petrol Price, Gold Rate, Silver Rates, Diesel Prices along with Income Tax Calculator