According to CFO Akshant Goyal, CFO Akshant Goyal, the online food delivery platform Zomato Ltd aims to reach break-even levels generally between the fourth quarter of this fiscal and the second quarter of FY24 between the fourth quarter of this fiscal year and the second quarter of FY24. quarter of FY24.
Zomato, which earlier this year issued a $400 million investment recommendation for the coming years in fast trading, has now reduced it to about $320 million.
In an analyst call, Mr Goyal said Zomato was already positive on cash flow with its adjusted EBITDA losses of Rs 150 crore and other earnings were Rs 170 crore in the first quarter of the current fiscal year.
“So, in some ways, we’re not losing money in that business anymore… we’ve adjusted the EBITDA breakeven in the food delivery business,” he added.
The next milestone, he said, “is to get the overall Zomato business to an adjusted EBITDA breakeven and we think we’re close now.”
Turning to the timeline, he said: “Internally, we aim to be there in the fourth quarter of this fiscal year. That’s the internal goal we have as a team, but we think if we don’t go into that, it won’t be.” later than Q2 FY24, that’s the September 2023 quarter to break even on Zomato level adjusted EBITDA.”
At the consolidated level, Zomato Ltd had narrowed its net loss to Rs 186 crore in the first quarter ended June 30, 2022 from a net loss of Rs 360.7 crore in the same period last year.
The consolidated turnover from operations was Rs 1,413.9 crore as compared to Rs 844.4 crore in the same period last fiscal year.
When asked what will drive the push towards breaking even EBITDA, he said: “It will be primarily driven by food delivery EBITDA growth. We have also been working on lowering our fixed costs, and I think that’s why we’ve been able to accommodate a lot of salary increases etc., which would otherwise have made this number much higher.”
Speaking of the instant delivery service Blinkit, Mr Goyal said: “I think the company has exceeded our expectations so far in terms of growth and loss reduction to where we were 6-7 months ago. Considering where the company is now and the path Looking forward to seeing, we think we need to break even that company with an investment of $320 million from January 2022.”
He went on to say, “We’ve already invested about USD 150 million in that company so far – our estimate is USD 320 million to break even that company. In terms of the timeline on Blinkit, we don’t have that kind of visibility that we want. about the Zomato business, so I wouldn’t risk estimating what quarter we’ll be there in.”
In response to a question, he said that losses at Blinkit are also declining and that it should continue post-trade as synergies kick in.
In June this year, Zomato announced that it would acquire Blink Commerce Pvt Ltd (formerly known as Grofers India Pvt Ltd) for a total purchase price of Rs 4,447.48 crore in a share swap agreement.
(Except for the headline, this story has not been edited by DailyExpertNews staff and has been published from a syndicated feed.)