Online food delivery platform Zomato reported on Monday an increase in net loss to Rs 359.7 crore in the March 2022 quarter, compared to Rs 134.2 crore in the corresponding quarter last year. Operating income in January-March 2022 was Rs 1,211.8 crore, a jump of 75.01 percent from Rs 692.4 crore in the same period a year ago.
The company’s total costs nearly doubled to Rs 1,701.7 crore during the March 2022 quarter, compared to Rs 885 crore a year ago, according to a regulatory filing.
Zomato said: “Adjusted revenue grew 8 percent qoq (QoQ) and 67 percent yoy (yoy) to Rs 15.4 billion (Rs 1,540 crore) in Q4FY22. Adjusted EBITDA loss fell to Rs 2.2 billion (-15 percent of adjusted sales) in Q4FY22 compared to Rs 2.7 billion (-19% of adjusted sales) in Q3FY22.”
The company also said it expects adjusted revenue growth to accelerate to double digits in the next quarter and Adjusted Ebitda losses will also decline significantly. Loss reduction will be driven by an improvement in the contribution margin of the food delivery business and also operational leverage as our revenues grow faster than our fixed costs. Ebitda stands for earnings before interest, tax, depreciation and amortization.
Gross order value grew 6 percent quarter on quarter and 77 percent year on year to a record high of 5,850 rupees in Q4FY22. This was driven by healthy order volume growth while the average order value remained stable.
Zomato launched more than 300 new cities in the fourth quarter of 2021-2022 and now has a presence in more than 1,000 cities across India, it said.
Speaking of many minority investments, Zomato founder and CEO Deepinder Goyal said, “The rationale behind making minority investments is twofold: 1) setting the building blocks for a robust fast-trading company in India, and 2) the digitization and growth of the food and restaurant industry that will drive our core food business is accelerating and all of our investments fit into one of those two buckets.”
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