Zomato Q3 results: Net loss narrows to Rs 62 crore YoY, revenue rises 82%

Online food delivery giant Zomato Ltd posted a consolidated loss of Rs 63.2 crore, narrowing sharply from Rs 352.6 crore in the corresponding quarter last year. It had posted a net loss of Rs 429 crore in the previous quarter (Q2FY22).

Revenue from operations stood at Rs 1,112 crore, up 82.47% against Rs 609.4 crore in the year-ago period. Adjusted revenue saw 78% year on year growth to Rs 1,420 crore, while on a sequential basis the company had a flat quarter.

Also Read | Tata Power Q3 results: Net profit jumps 74% to Rs 552 crore, revenue rises 42%

The restaurant aggregator and food delivery company’s gross order value (GOV) grew by 84.5% YoY and 1.7% QoQ in the quarter ended December 31, 2021.

“The number of orders grew 93% YoY and 5% QoQ. Average order value (AOV, which includes customer delivery charges) shrunk by – 3% QoQ, mostly on account of a reduction in customer delivery charges,” the company said in its statement.

Also Read | PowerGrid shares rise over 2% after quarterly earnings, net profit down 2.2%

The customer delivery charges de-grew by 22% and it was driven by Rs 7.5 per order reduction in customer delivery charges as compared to the second quarter. Part of lowering the customer delivery charges is because Zomato has started operations in 180 new cities, where they have introduced temporary free delivery to cultivate a culture of ordering food from restaurants. Zomato is now operating in more than 700 cities.

Also Read | Nykaa shares slip over 7% after disappointing quarterly performance

In Q3FY22, adjusted EBITDA was reduced to Rs 270 crores as compared to Rs 310 crore in the previous quarter, said Zomato.

The company said it is currently well-capitalized with $1.7 billion cash in its balance sheet and doesn’t envisage raising cash in the foreseeable future.

Also Read | Cryptocurrencies have no underlying value: RBI governor

Zomato in its press statement with the regulatory filing said it plans to focus on key areas of investment – core food businesses and quick commerce.

It made cash investments of around $225 million in the past year across three companies – Blinkit (erstwhile Grofers), Shiprocket and Magicpin. The investments were made with the objective put quick e-commerce in India, said Zomato in a press release.

Also Read | RBI monetary policy: Market rebounds, Bond yields fall

Zomato stocks are 25% down since listing amid weakness in the broader market valuation concerns and expectations for monetary tightening by global central banks.

The results were released after the market was closed. Zomato stocks closed at Rs 94.50, up by Rs 0.30, or 0.32% on the BSE.