Zomato's Loss Narrows To 250 Cr, Books 62% Profit In Q2

Zomato India's leading food delivery platform declares second-quarter results with a reduction of loss in comparison to the same quarter the previous year and registers a profit of 62 per cent

Zomato one of the leading food delivery platform said that it has consolidated net loss for the quarter ending September 2022 narrowed to Rs 250.8 crore against Rs 434.9 crore in the same quarter the previous year.

According to the exchange filing Its revenue from operations zoomed 62.20 per cent to Rs 1,661.3 crore from Rs 1,024.2 crore in the corresponding quarter last year.

Zomato said “adjusted” EBITDA loss increased to Rs 192 crore in Q2FY23 as compared to Rs 150 crore in Q1FY23. The increase in loss was on account of the consolidation of quick commerce losses.

For the food delivery business, the gross order value (GOV) growth was 3 per cent QoQ and 23 per cent YoY, driven by growth in both order volumes and average order value. Growth in revenue per order led to a higher adjusted revenue (for food delivery) growth of 8 per cent QoQ and 27 per cent YoY.

Contribution margin (as a per cent of GOV) improved from 2.8 per cent in Q1 to 4.5 per cent in Q2, Zomato said. As a result, the food delivery adjusted EBITDA hit break-even in Q2.

“The increase in contribution margin is driven by improvements on both cost and revenue side. This has been the result of scale and heightened focus on profitability over the last few quarters. In our view, none of these improvements in contribution margin is temporary in nature,” said Akshant Goyal, Chief Financial Officer at  Zomato

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