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Business News/ Companies / Company Results/  Zomato Q4 results: Net profit at 175 crore versus loss of 188 crore YoY; 5 key highlights
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Zomato Q4 results: Net profit at ₹175 crore versus loss of ₹188 crore YoY; 5 key highlights

Zomato posted a consolidated net profit of ₹175 crore in Q4 FY24 versus a loss of ₹189 crore same period a year ago.

Zomato Q4 results FY24Premium
Zomato Q4 results FY24

Food delivery platform Zomato, on May 13, announced its fourth quarter (Q4 FY24) financial results ending on March 31, 2024. The company posted a consolidated net profit of 175 crore in Q4 FY24 versus a loss of 188 crore same period a year ago.

The share price of the food delivery closed in red, down nearly 2 percent to 196.65 per share on Monday's trading session. The Zomato stock has gained nearly 65.53 per cent in the last six months and over 208 per cent in the last one year.

Also read: Zomato ESOPs: Food delivery platform allots 18.26 crore shares to employees

The company further announced that its quick commerce platform Blinkit has turned profitable on an Adjusted Earnings Before Interest, Tax, Depreciation, and Amortization (EBITDA) basis in March 2024. Additionally, Blinkit's revenue more than doubled year-on-year, reaching 769 crore.

Here are 5 key highlights from Zomato's Q4 results for FY24 -

Operating performance

Zomato announced a net profit of 175 crore for the March quarter, marking a significant turnaround from the net loss of 188 crore recorded during the corresponding quarter of the previous year.

In the quarter under assessment, the revenue from operations amounted to 3,562 crore, contrasting with 2,056 crore recorded in the corresponding quarter of the previous fiscal year.

Additionally, the company posted an EBITDA of 86 crore, marking a significant improvement from the loss of 226 crore incurred during the same period last year.

Blinkit becomes profitable

In March, Zomato's quick commerce division, Blinkit, achieved positive adjusted EBITDA. In the specified quarter, the quick commerce business revenue surged to 769 crore, marking a significant increase from the 363 crore reported in Q4FY23, more than doubling its previous figure. Over the course of FY24, this segment contributed revenue amounting to 2,301 crore, compared to 806 crore in FY23, demonstrating substantial growth over the fiscal year.

Food delivery segment performance

Zomato's food ordering and delivery business in India saw a notable increase in revenue, reaching 1,739 crore in Q4 FY24 compared to 1,172 crore in the corresponding period of the previous year. Moreover, for the entire fiscal year, revenue in this segment amounted to 6,361 crore, marking a significant rise from 4,533 crore in FY23.

ESOP 

In a filing with the BSE exchange on Monday, food delivery company announced the allocation of employee stock option plans (ESOP) comprising 18.26 crore shares to its employees across the company and its subsidiaries.

“18,26,27,402 (Eighteen Crore Twenty Six Lakh Twenty Seven Thousand Four Hundred and Two) grants are covered by ESOP 2024, which shall entitle 1 (one) fully paid-up equity share of face value of 1/- (Rupee One) each against each ESOP exercised (will be proportionately adjusted due to corporate action(s), if any)," the company said in its exchange filing.

In a letter addressed to shareholders, Zomato CEO Deepinder Goyal announced the company's proposal to establish an additional Employee Stock Ownership Plan (ESOP) pool, amounting to 2% of its current share capital on a fully diluted basis, pending shareholder approval.

“We will continue to follow our earlier format of ESOPs with face value as the strike price; vesting will be linked to time and performance conditions (details of which will follow in the postal ballot notice for shareholders’ approval). This new ESOP pool should be sufficient for us for at least the next five years," he added.

Expansion plans

The company has its presence in over 26 cities of India. In the fiscal year 2025, the company expanded its presence by opening 75 new stores, thereby increasing the total store count to 526.

“In the current quarter (Q1FY25), we expect to add another 100 stores. At this point, we are aiming to get to 1,000 stores by the end of FY25," Goyal said.

He further added, “Expansion beyond the top eight cities is more experimental in nature to test the depth of the market and so far most of our stores in these smaller cities are doing well. We plan to continue opening more stores in a measured way in the smaller cities."

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Published: 13 May 2024, 03:15 PM IST
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