{"id":49703,"date":"2024-05-13T19:02:03","date_gmt":"2024-05-13T19:02:03","guid":{"rendered":"https:\/\/news.talkwithrattan.com\/index.php\/2024\/05\/13\/zomato-delivers-rs-175-crore-pat-in-q4-times-of-india\/"},"modified":"2024-05-13T19:02:03","modified_gmt":"2024-05-13T19:02:03","slug":"zomato-delivers-rs-175-crore-pat-in-q4-times-of-india","status":"publish","type":"post","link":"https:\/\/news.talkwithrattan.com\/index.php\/2024\/05\/13\/zomato-delivers-rs-175-crore-pat-in-q4-times-of-india\/","title":{"rendered":"Zomato delivers Rs 175 crore PAT in Q4 – Times of India"},"content":{"rendered":"
\"Zomato<\/div>\n
MUMBAI: Zomato on Monday reported net profit of Rs 175 crore on a consolidated basis in the March quarter, helped by growth<\/a> across businesses. This compares with losses of Rs188 crore that the firm had posted in the year-ago period. Gross order value (GOV) for its core food delivery business grew 28% year-on-year during the quarter to Rs 8,439 crore even as several restaurant operators have been reporting sluggish growth while its quick commerce business Blinkit is growing at a faster pace amid rising adoption of instant deliveries.\u201cI think customers value the convenience and predictability layer Zomato has built on top of the services offered by restaurants, which is why the growth of Zomato is a tad bit higher than that of the restaurant industry,\u201d said co-founder and CEO Deepinder Goyal. The company\u2019s performance however, failed to cheer markets and its stock price ended 3.82% lower on the BSE as the firm missed profit estimates of Rs 188 crore pegged by analysts. For the full year, Zomato posted profits of Rs 351 crore against losses of Rs 971 crore reported in FY23.
Revenue from operations increased to Rs 3,562 crore in Q4FY24 from Rs 2,056 crore in the year-ago quarter. Revenue from its core food delivery business grew by nearly 34% y-o-y to Rs 2,050 crore, the company said in its letter to shareholders. Blinkit turned adjusted EBITDA profitable in the month of March and reported a 97% y-o-y growth on GOV. The quick commerce platform has set a stiff target of operating 1,000 dark stores (total count) by the end of FY25. \u201cOne of the key vectors for growth for us right now is store expansion. In Q4FY24, we added 75 net new stores taking our total store count to 526. For comparison, this is more than the number of stores we added in the three preceding quarters cumulatively,\u201d said founder and CEO Albinder Dhindsa. The store expansion will largely be restricted to the top few cities driving bulk of the orders and the strategy will be to strengthen presence in markets like Bengaluru, Mumbai and Hyderabad which still lag in growth when compared to its home market of Delhi-NCR. \u201cThis alone will lead to about four times increase in our GOV,\u201d Dhindsa said.
In a post-earnings call with analysts, executives at Zomato said that they expects Blinkit\u2019s monthly transacting users to surpass that of Zomato\u2019s going ahead.
Last month, Goldman Sachs in a note had said that Blinkit\u2019simplied valuation\u2014estimated at $13 billion is higher than that of parent Zomato\u2019s core food delivery business. \u201cWe are just grateful that the bet we took on Blinkit worked out just fine and we are not at a point where Akshant and I are getting fired for an expensive acquisition gone wrong,\u201d Goyal said. <\/div>\n