Online food delivery platform, Zomato has turned profitable for the first time during the June quarter of this fiscal.
Zomato’s operating revenue surged 17.5% to Rs 2,416 crore during the first quarter of FY24 ending June 2023 compared to Rs 2,056 crore during the quarter ending March 2023 or Q4 FY23. This is the first time that Zomato has registered a profit after tax.
“We were expecting to hit this milestone in the September quarter (Q2FY24), and we were being conservative in our earlier guidance,” said Zomato CFO Akshant Goyal. “However, some critical parts of the team across our businesses out-executed our expectations/plans, and some of our initiatives delivered better outcomes than we had expected,” he added.
Zomato has beaten its own projections of profitability. In its quarterly shareholders' letter released in Q4 of the previous fiscal, the company mentioned that its consolidated business would become profitable in the following four quarters, or by Q4 FY24. Instead, it posted a profit in the first quarter itself.
Importantly, the company reported a profit after tax of Rs 2 crore in Q1 FY24 against Rs 188 crore loss in Q4 FY23.
Blinkit biz turned contribution positive
The online food delivery giant said its quick commerce (Blinkit) business turned contributive positive for the first time ever in the month of June 2023. The food delivery platform said it can deliver adjusted EBITDA breakout in the quick commerce business in the next four quarters.