New Delhi: Online food platform Zomato on Friday said its consolidated net loss narrowed to around Rs 188 crore for the quarter ended March 31, lower than Rs 360 crore in the year-ago quarter and Rs 345 crore in the previous quarter. . The company reported a consolidated revenue of Rs 2,056 crore, up 70 per cent from Rs 1,211.8 crore in the year-ago period.
In FY23, Zomato’s loss narrowed to Rs 971 crore from Rs 1,209 crore a year ago, as revenue grew nearly 70 per cent to Rs 7,079 crore. ,ALSO READ: Adani-Hindenburg controversy: ‘No regulatory failure’, says SC panel,
“In Food Distribution, over the last five quarters, we have meaningfully improved our margins while further strengthening our market position. We will continue with the same mindset as we expand our Adjusted EBITDA margin (from the current 1.2 per cent) to Rs. Gov’s stated target of +4-5 per cent,” said Deepinder Goyal, Zomato’s founder and CEO. ,ALSO READ: Meta May 6K workers in third round of job cuts next week: Report,
Meanwhile, Zomato’s arch-rival Swiggy on Thursday announced that its food delivery business has turned profitable.
Zomato now aims to achieve positive adjusted EBITDA (and also profit after tax) on a consolidated basis (including instant commerce) within the next four quarters.
“On the accelerated commerce side, while there is still a long way to go in terms of margin improvement, we are pleased with the results so far in the short run. In the month of March 2023, over 65 percent of GOV contribution was from positive stores Goyal said.
With respect to its expedited delivery service Blinkit, contribution margin improved despite a seasonal decline in average order value (AOV).
The AOV in Q4 FY2023 was Rs 522 while in Q3 FY2023 it was Rs 553.
“We have learned that the AOV in this business will swing up and down in the near to medium term due to several (mainly seasonal) factors. For example, if there is a good vegetable crop, the AOV will go down (which Albinder Dhindsa, founder and CEO of Blinkit That said, prices tend to be lower for F&V.
Dhindsa said, “Over time, as we scale up, we expect that we will be able to better anticipate such fluctuations and reduce the impact of these fluctuations on our margins. We expect the AoV to grow QoQ in the current quarter (Q1FY24).”