Zomato Ltd reported a consolidated net profit of Rs 138 crore for the December quarter, compared to a profit of Rs 36 crore in September and a loss of Rs 367 crore in the same quarter last year. This profit figure exceeded the Street’s estimate of Rs 50-70 crore. The positive bottom line result caused the stock to climb 3.17% to Rs 145.05 on the BSE, despite an overall weak trading session. Eventually, the stock closed at Rs 144, up 2.42%.
Consolidated adjusted revenue rose by 53% year-on-year (12% quarter-on-quarter) to Rs 3,609 crore. Zomato CEO Deepinder Goyal stated that the company continued to surpass its expected annual growth rate of 40%. He anticipated the topline to maintain a growth rate of over 50% year-on-year.
“Gross Order Value (GOV) growth is now back up to 25% year-on-year. We anticipate GOV to sustain a growth rate of over 20% year-on-year, and potentially accelerate further if we witness greater-than-expected market share gains and a recovery in overall consumer demand. Annualized Adjusted EBITDA profit now exceeds Rs 1,000 crore. We anticipate both margin expansion and GOV growth to drive further enhancement in absolute profits,” he stated. Goyal mentioned that it is too early to determine the trajectory of the platform fee. Similar to the Gold program, Zomato is still experimenting with various strategies to ascertain what is sustainable in the long run.
“We will continue to strategically utilize tools like these to optimize both growth and margin expansion. Most importantly, as we implement these strategies, we will ensure the viability and welfare of all our stakeholders – our customers, restaurant partners, and delivery partners,” he added.
