Zomato has recently delivered strong financial results, marking a significant improvement in its profitability and overall performance. The company’s financials for the first quarter of the fiscal year 2024-25 (Q1 FY25) highlight its robust growth across multiple business segments, solidifying its position as a leader in the Indian food-tech industry.
Key Financial Highlights of Zomato
1. Revenue Growth
Zomato reported a 74% year-on-year increase in revenue, reaching ₹4,206 crore in Q1 FY25, up from ₹2,416 crore in the same period the previous year. This substantial growth was primarily driven by the company’s core food delivery business, which remains the largest revenue generator, as well as the quick commerce segment, led by Blinkit.
2. Profitability
Zomato achieved a net profit of ₹253 crore in Q1 FY25, a significant leap from the ₹2 crore profit reported in Q1 FY24. This marks the fifth consecutive quarter of profitability for Zomato, showcasing the company’s ability to sustain its positive earnings trend. The company’s adjusted EBITDA also improved to ₹299 crore, driven by margin expansion across its business segments.
3. Segment Performance
- Food Delivery: The food delivery segment continues to be the cornerstone of Zomato’s business, contributing over ₹2,256 crore to the company’s total revenue in Q1 FY25. The segment’s Gross Order Value (GOV) saw a 53% year-on-year increase, underlining Zomato’s strong market presence.
- Quick Commerce (Blinkit): Blinkit has emerged as a critical growth driver, with its revenue increasing by 130% year-on-year to ₹942 crore. Blinkit’s rapid expansion and strong performance in quick commerce have played a pivotal role in boosting Zomato’s overall financials.
- Hyperpure: Zomato’s B2B supplies vertical, Hyperpure, reported a 27% quarter-on-quarter growth in revenue, reaching ₹1,216 crore. This segment is crucial for Zomato as it strengthens its supply chain capabilities and enhances service quality for partner restaurants.
4. Expenses and Operational Efficiency
Zomato’s total expenses for Q1 FY25 increased to ₹4,203 crore, driven by higher delivery costs, procurement expenses, and employee benefits. Despite the rise in expenses, the company’s focus on operational efficiency has allowed it to maintain a positive profit margin. The company now spends ₹0.99 to earn every rupee, reflecting its efficient cost management.
Conclusion
Zomato’s financial performance in Q1 FY25 indicates a well-rounded growth strategy, with strong contributions from food delivery, quick commerce, and B2B supplies. The company’s sustained profitability, coupled with its robust revenue growth, highlights its effective business model and strategic execution. As Zomato continues to expand its services and optimize operations, it is well-positioned to maintain its leadership in the food-tech industry.
FAQ
1. How much revenue did Zomato generate in Q1 FY25?
Zomato generated ₹4,206 crore in revenue in Q1 FY25, marking a 74% year-on-year increase.
2. What is Zomato’s net profit in the latest quarter?
Zomato reported a net profit of ₹253 crore in Q1 FY25, a significant increase from ₹2 crore in the same period last year.
3. Which segment contributed most to Zomato’s revenue?
The food delivery segment was the largest contributor, generating over ₹2,256 crore in Q1 FY25.
4. How is Blinkit contributing to Zomato’s growth?
Blinkit, Zomato’s quick commerce arm, saw a 130% year-on-year increase in revenue, contributing ₹942 crore to the total revenue in Q1 FY25.
5. What are Zomato’s primary business segments?
Zomato’s primary business segments include food delivery, quick commerce (Blinkit), and B2B supplies (Hyperpure).