Zomato March quarter loss widens, gross order value soars to a record
Premium- Zomato’s revenue saw a 75% rise in Q4FY22, at ₹1,211.8 crore compared with ₹692.4 crore year-on-year
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NEW DELHI : Food aggregator Zomato Ltd reported a loss of ₹ 359.7 crore for the quarter-ended March compared with a loss of ₹138.1 crore during the same period of the preceding year. The net loss widened despite a rise in other income to ₹138.2 crore from ₹58.4 crore. For the year-ended FY22, Zomato’s net loss widened to ₹1,222.5 crore from ₹816 crore in FY2021.
Zomato’s revenue, however, saw a 75% rise in Q4FY22, at ₹1,211.8 crore compared with ₹692.4 crore year-on-year.
The aggregator’s gross order value for the last quarter of the fiscal has surged to a record ₹5,850 crore, a growth of 77% year-on-year and 6% quarter-on-quarter.
On the operational front, Zomato reported an adjusted earning before interest, tax, depreciation, and amortisation loss of ₹224.5 crore for Q4FY22, which has narrowed on a quarterly basis (from ₹272.3 crore in Q3), but has nearly doubled on a year-on-year basis (from ₹120.7 crore in Q4FY21).
The company claims to have seen tremendous growth, especially during Q3 and Q4 of financial year 2021-22, as the country crawled back to normalcy from a raging pandemic, giving a boost to the dine-out and travel segments.
“We believe that was a one-time correction of our growth trajectory on the back of two strong quarters. We think our growth trajectory is back on track and we don’t foresee ‘post-covid ramifications’ affecting our growth rate anymore," said Deepinder Goyal, founder, Zomato.
On a free cash flow basis, the company saw an outflow of ₹210 crore in Q4FY22. It is very keen on conserving cash as it feels that all minority equity investments have been completed.
Zomato also reported a record number for average monthly transacting customers for the quarter-ended March, at 1.57 crore users compared to 98 lakh year-on-year.
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However, the food and grocery delivery platform saw its revenue from operations more than double in the period under review at ₹4,192.4 crore from ₹1,993.8 crore during the year ago.
Goyal said that the minority investments that were made from time-to-time tap into economies of scale and build unbeatable moats that will serve customers for multiple decades.
He also allayed fears about his personal money being invested in some early-stage companies and said that Zomato as an entity only invested later after having confidence on the startup’s growth potential.
