Financial Performance Surge
Zomato has reported a remarkable turnaround in its financial performance for the December quarter, registering a consolidated net profit of ₹138 crore. This marks a significant contrast to the net loss of ₹347 crore in the corresponding period last fiscal year.
The online food delivery platform saw its consolidated revenue from operations soar to ₹3,288 crore in Q3 of the current fiscal, showcasing robust growth compared to ₹1,948 crore in the previous year. However, total expenses also increased to ₹3,383 crore compared to ₹2,485 crore in the same period last year.
Impact of Sporting Events and Festive Season
The surge in consumer demand during the men’s Cricket World Cup, held between October 5 and November 19, coupled with the festive season, played a pivotal role in driving Zomato’s revenue to new heights.
During these peak periods, Zomato and its competitor Swiggy typically witness a significant uptick in sales. The synergy between the Cricket World Cup and festive demand contributed substantially to boosting the company’s topline.
Moreover, Zomato’s grocery delivery business, Blinkit, experienced a more than doubling of the gross order value (GOV), while its core food delivery business grew by 27 per cent for the quarter. This surge led to a remarkable 69 per cent increase in total revenue, reaching ₹3,288 crore.
Despite the positive performance, Zomato acknowledged that growth in its food delivery segment fell below expectations due to “muted” demand. Nonetheless, the company remains optimistic about future growth prospects and anticipates GOV to increase by more than 20 per cent in the upcoming quarters.
