Swiggy rival Zomato has reported a significant turnaround in its financial performance for the second quarter of the fiscal year 2024 (Q2FY24).
The company has posted a profit after tax of Rs 36 crore, marking an 18-fold increase from the previous quarter. Notably, This is a substantial recovery from the Rs 251 crore loss reported in the same quarter of the previous year.
On the other hand, The revenue has also seen an 18% increase to Rs 2,848 crore compared to the June quarter of the same fiscal year.
Zomato's operational revenue soared by 71.46% year-on-year to Rs 2,848 crore, bolstered by a spike in food delivery orders and the popularity of its Zomato Gold subscription service.
Zomato's quarterly income rose by 67.12% to Rs 3,060 crore, with food delivery driving profits and quick commerce showing initial signs of a positive contribution despite losses.
Zomato's expenditure saw a significant rise, with costs of materials increasing by 19.9% to Rs 674 crore and employee benefits by 23.4% to Rs 417 crore. Advertisement and sales promotion expenses also jumped by 13.1% to Rs 355 crore.
Despite these increases, the company's spending efficiency improved, with Zomato spending just Re 0.99 to earn Re 1. This careful financial management has been crucial in the company's path to profitability.