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Home >Companies >Company Results >Zomato net loss widens to 356 crore in Q1 as expenses exceed revenue

Food delivery aggregator Zomato reported a consolidated loss of 356.2 crore during the quarter ended June 30, 2021. The Deepinder Goyal-led company had posted a loss of 99.8 crore in the year-ago period.

Zomato's total revenue from operations jumped to 844.4 crore during the quarter under review, as opposed to 266 crore in the corresponding period last year.

"Revenue growth was largely on the back of growth in our core food delivery business which continued to grow despite the severe Covid wave starting April. On the other hand, Covid significantly impacted the dining-out business in Q1 FY22 reversing most of the gains the industry made in Q4 FY21," Zomata said in a regulatory filing on Tuesday.

Total expenses increased to 1,259.7 crore, as opposed to 383.3 crore on account of higher employee benefits expense at 390. 7 crore and purchase of stock-in-trade at 74.7 crore.

"Adjusted EBITDA loss was 170 crore in Q1 FY22 as compared to 120 crore in Q4 FY21. The loss for Q1 FY22 reported in our financial statements is 360 crore as compared to the Adjusted EBITDA loss of 170 crore," Zomato said.

"This is largely on account of non-cash ESOP expenses which have increased meaningfully in Q1 FY22 due to significant ESOP grants made in the quarter pursuant to creation of a new ESOP 2021 scheme. This divergence in reported profit/loss and Adjusted EBITDA will continue going forward," it further added.

Zomato said that its India food delivery business continues to remain contribution positive, although the contribution margin reduced slightly in June quarter in sequential terms on account of growth investments in addition to the costlier business environment due to lockdown.

"India food delivery business reported the highest ever GOV [gross order value], number of orders, transacting users, active restaurant partners and active delivery partners till date in any quarter in our history," the food delivery platform stated.

India food delivery GOV in Q1 FY22 grew by 37 per cent QoQ to 4,540 crore ($605 million), from 3,310 crore ($442 million) in Q4 FY21," it added.

Ahead of its first quarterly earning, Zomato saw its shares decline 4.22 per cent on BSE to end at 124.95, down 5.50 from its previous close.

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