Bengaluru: Zomato Limited The first results update since its listing last month reported a major loss for the quarter ended June, hurt by higher expenses and the food delivery company’s dining-out business taking a hit due to the pandemic.
The company said the second wave of Covid-19 infections in the country significantly impacted its food and beverage business and reversed most of the gains the industry had made in the previous quarter.
Compared to a loss of Rs 99.8 crore a year ago, consolidated net loss for the first quarter stood at Rs 356 crore ($47.79 million), Zomato, which is also a restaurant aggregator, said in a regulatory filing.
The company said non-cash employee stock ownership plan expenses increased in the first quarter and affected results. Zomato’s total expenses tripled to Rs 1,260 crore.
Based in Gurugram, a satellite city of the capital New Delhi, the company generates most of its revenue from food delivery and related fees that it charges restaurants. It allows users to book tables online, leave reviews and get special discounts while dining at select restaurants.
With SoftBank-backed startup Swiggy, zomato One has dominated the delivery market that benefited from the pandemic as people stayed in and started ordering online.
Zomato’s gross orders grew more than four times to Rs 4,540 crore in the reported quarter compared to a year ago, while revenue from operations rose to Rs 844 crore.
Shares of the company fell nearly 4% on Tuesday ahead of the results, leaving them nearly flat since the stock market launch in Mumbai on July 23, which was valued at more than $13 billion.
The company said the second wave of Covid-19 infections in the country significantly impacted its food and beverage business and reversed most of the gains the industry had made in the previous quarter.
Compared to a loss of Rs 99.8 crore a year ago, consolidated net loss for the first quarter stood at Rs 356 crore ($47.79 million), Zomato, which is also a restaurant aggregator, said in a regulatory filing.
The company said non-cash employee stock ownership plan expenses increased in the first quarter and affected results. Zomato’s total expenses tripled to Rs 1,260 crore.
Based in Gurugram, a satellite city of the capital New Delhi, the company generates most of its revenue from food delivery and related fees that it charges restaurants. It allows users to book tables online, leave reviews and get special discounts while dining at select restaurants.
With SoftBank-backed startup Swiggy, zomato One has dominated the delivery market that benefited from the pandemic as people stayed in and started ordering online.
Zomato’s gross orders grew more than four times to Rs 4,540 crore in the reported quarter compared to a year ago, while revenue from operations rose to Rs 844 crore.
Shares of the company fell nearly 4% on Tuesday ahead of the results, leaving them nearly flat since the stock market launch in Mumbai on July 23, which was valued at more than $13 billion.
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