Swiggy rival Zomato's Q4FY24 net profit rises to Rs 175 crore, revenue up by 73.2% YoY

Deepinder Goyal-led food delivery giant Zomato has once again reported strong financial growth in the fourth quarter of FY2024.

The company recorded a consolidated net profit of Rs 175 crore in Q4FY24, marking a 26.8% increase from Rs 138 crore in Q3FY24. This is a notable turnaround from a consolidated net loss of Rs 188 crore in the same quarter of the previous fiscal year.

Zomato revenue growth

The company's consolidated net revenue also saw a significant rise, increasing by 73.2% year-on-year to Rs 3,562 crore in the March quarter, up from Rs 2,056 crore in the year-ago period.

Additionally, total expenses rose to Rs 3,636 crore, compared to Rs 2,431 crore in the corresponding period a year ago.

In FY24, consolidated revenue from operations grew by 71.1% to Rs 12,114 crore, compared to Rs 7,079 crore in the last fiscal year. 

The financial results for the year ended March 31, 2024, are not directly comparable with the previous year, due to the acquisition of Blink Commerce Pvt Ltd (formerly known as Grofers India Pvt Ltd) in June 2022, the filing said.

Earnings before interest, taxes, depreciation, and amortization (EBITDA) were Rs 86 crore in the January-March quarter of FY24, a significant improvement over an EBITDA loss of Rs 226 crore in the same period of the previous year.

For the entire fiscal year 2023-24, Zomato reported a consolidated net profit of Rs 351 crore, a substantial recovery from a loss of Rs 971 crore in the last fiscal.

"I think customers value the convenience and predictability layer Zomato has built on top of the services offered by restaurants, which is why the growth of Zomato is a tad bit higher than that of the restaurant industry," said Deepinder Goyal.

"We believe that we can continue to grow faster than the overall restaurant industry (and therefore power a significant part of the growth of the restaurant industry) if we continue to innovate using our customer-first principles while creating value for all our other stakeholders – our restaurant partners, and our delivery partners," Goyal said.

Blinkit growth

The quick commerce business, under the subsidiary Blinkit, reached an adjusted EBITDA break-even mark for March 2024.

Zomato also noted that margin expansion continues in both food delivery and quick commerce sectors. The company is aggressively expanding in the quick commerce sector, aiming for 1,000 stores by March 2025.

Zomato's business-to-consumer (B2C) sectors—food delivery, quick commerce, and going-out—saw a 51% year-on-year growth in Gross Order Value (GOV) to Rs 13,536 crore. 

Food delivery GOV grew by 28% year-on-year, while quick commerce GOV increased by 97% year-on-year, and going-out GOV surged by 207% year-on-year.

The business-to-business (B2B) segment, Hyperpure, also showed a 99% year-on-year revenue growth.

Rakesh Ranjan, CEO of Food Delivery at Zomato, detailed the factors driving this growth: "GOV growth is a function of Average Order Value (AOV) growth and Order growth. In Q4FY24, the 28% year-on-year GOV growth was driven by 5% year-on-year AOV growth and 23% year-on-year Order growth. And the 23% year-on-year Order growth was a result of 14% year-on-year growth in average monthly transacting customers and 7% year-on-year growth in average monthly order frequency."

Zomato CEO Deepinder Goyal's take on Blinkit

Reflecting on the company's trajectory and strategic acquisitions, Deepinder Goyal added, "We are just grateful that the bet that we took on Blinkit worked out just fine and we are not at a point where Akshant and I are getting fired for an expensive acquisition gone wrong. We are also grateful to our Board, for believing in the distant bet we were taking at that time, and helping us bring it all together quickly over the last few quarters."

"Honestly, we really could not have imagined the current state of all four of our businesses – food delivery, Blinkit, Going-out, and Hyperpure. I think the team has executed phenomenally well over the last couple of years and continues to stay (more or less) focused with their ears to the ground. While we are happy to be where we are today but also equally scared. It feels like we have lost the right to screw up, or make mistakes. Our journey in the last two years has, in so many ways, increased the expectations our stakeholders have from us and we will try our best to live up to them," Goyal added.