Zomato Reports INR 3,288 Cr Revenue and INR 138 Cr Profit in Q3 FY24

SA TeamFebruary 11, 2024

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Three points you will get to know in this article:

Zomato’s Q3 FY24 revealed a 15.4% surge in operational revenue.
Diverse revenue streams led total revenue to exceed Rs 3,500 crore.
Profitability saw a significant turnaround, surging 3.8X to Rs 138 crore.

On Thursday, Zomato, the pioneering foodtech and quick commerce platform, unveiled its financial performance for the third quarter of the ongoing fiscal year, Q3 FY24. The latest figures reveal not just a commendable surge in scale, but also a remarkable 3.8X leap in profits.

According to the company’s consolidated financial report derived from the National Stock Exchange, Zomato’s operational revenue soared by 15.4% to Rs 3,288 crore in Q3 FY24, a notable contrast to the Rs 2,848 crore recorded in Q2 FY24.

Diverse Revenue Streams and Operating Revenue Breakdown

Comparing with the third quarter of the previous fiscal year, Q3 FY23, Zomato witnessed an impressive 68.8% surge in operating revenue, reaching Rs 1,948 crore.

Zomato’s multifaceted operations encompass various units, including its renowned food marketplace platform, which seamlessly connects end-users, restaurants, and delivery personnel. Additionally, Hyperpure stands out by supplying farm-to-fork essentials to restaurants and businesses, while Blinkit ensures prompt delivery of kirana, FMCG, and other essentials within an astonishing 10-minute timeframe.

In the bustling world of dining exploration, both dining.out and Zomato Live offer a delightful journey for users, where they can uncover hidden culinary gems, secure coveted tables, and even snag tickets to thrilling entertainment events.

The company witnessed a remarkable surge in its financial performance, with a whopping 51.8% of its total operating revenue stemming from its dynamic food ordering and delivery arm. This segment saw a commendable growth of 10.2%, reaching Rs 1,704 crore in Q3 FY24, a significant leap from Rs 1,546 crore in the preceding quarter of the same fiscal year.

Furthermore, the company experienced a notable uptick in collections from its Hyperpure supplies, catering to the B2B sector, which saw a robust increase of 15.3% to Rs 859 crore during the same period. Blinkit, the quick commerce vertical, also played a pivotal role by contributing Rs 644 crore to the group’s coffers.

In addition to these impressive figures, the company derived income from its ‘Going-out’ segment and various other operational activities during the quarter ending December 2023. This diverse revenue stream underscores the company’s multifaceted approach to serving its clientele and sustaining its financial health.

Moreover, Zomato saw a noteworthy influx of Rs 219 crore in non-operating income, primarily stemming from interest and financial asset gains, during the third quarter of the fiscal year 2024. This bolstered its total revenue, surpassing the significant milestone of Rs 3,500 crore for the period.

Expenditure Analysis

Turning to expenditures, expenses related to delivery witnessed a notable surge, accounting for 31.6% in Q3 and escalating by 16.2% to reach Rs 1,068 crore. Additionally, there was a 16% increase in the purchase of stock, amounting to Rs 782 crore after adjusting for changes in inventories, while employee benefits expenditure remained steady at Rs 423 crore for the quarter.

Zomato also allocated Rs 374 crore towards advertisement and promotional activities, contributing to a total expenditure rise of 11.3% to reach Rs 3,383 crore in the third quarter of FY24.

In line with its upward trajectory, Zomato saw a remarkable surge in profits, skyrocketing by 3.8 times to Rs 138 crore in Q3 compared to Rs 36 crore in the preceding quarter. This marks a significant turnaround from last year’s Q3 (FY23), which saw the company grappling with losses amounting to Rs 347 crore.

Profitability and Share Performance

At a granular level, Zomato expended Rs 1.03 to earn a single rupee during Q3 of FY24.

For the nine-month period ending in December 2024, Zomato boasted a robust revenue of Rs 8,552 crore from its operations, securing a profit of Rs 176 crore.

Zomato embarked on its journey into the public market in July 2021, commanding a valuation of $12 billion, and reached its pinnacle with shares priced at over Rs 150 each in November 2021. However, its fortunes took a downturn, dipping below Rs 50 per share by July 2022.

The tide turned in Zomato’s favor in Q1 of FY24, marking its maiden voyage into profitability. Since then, the company has witnessed an impressive threefold increase in its share price, with the current valuation hovering around Rs 144 per share.

Zomato exemplified robust financial performance in Q3 FY24, with operational revenue reaching Rs 3,288 crore, marking a notable increase from the previous quarter and a substantial surge from Q3 FY23. The food ordering and delivery arm contributed significantly to the operating revenue, alongside notable upticks in Hyperpure and Blinkit segments. Despite increased expenditures, Zomato witnessed a remarkable 3.8X leap in profits, turning around from previous losses. The company’s multifaceted revenue streams and entry into profitability in Q1 of FY24 have notably amplified its share price, currently standing at around Rs 144 per share.