Zomato Q4 Results: Profit At Rs 175 Crore, Revenue Up 73% YoY

Zomato, the renowned food aggregator, continues its winning streak by reporting a net profit of Rs 175 crore for the January-March (Q4) period, marking the fourth consecutive quarter of profitability.

Amidst a challenging economic climate characterised by high inflation and subdued demand in the broader e-commerce sector, Zomato's revenue surged by an impressive 73 percent year-on-year to reach Rs 3,562 crore.

Despite recording total expenses of Rs 3,636 crore for the quarter, a significant increase from Rs 2,431 crore in the corresponding period a year ago, Zomato's strategic investments have paid off. For the fiscal year ended March 31, 2024, the company reported a consolidated net profit of Rs 351 crore, a significant turnaround from the previous fiscal year's consolidated net loss of Rs 971 crore.

In FY24, Zomato's consolidated revenue from operations reached Rs 12,114 crore, a substantial increase from Rs 7,079 crore in the previous fiscal year. The acquisition of Blink Commerce Pvt. Ltd. (formerly Grofers India Pvt. Ltd.) in June 2022 has significantly contributed to this growth.

However, comparisons between FY23 and FY24 are cautioned against due to this acquisition.

This remarkable achievement stands in stark contrast to the same quarter last year, when Zomato incurred a net loss of Rs 188 crore and reported revenue of Rs 2,056 crore. Investor confidence in the company has been bolstered by the rising profitability in its core business and the rapid growth of its quick commerce arm, Blinkit, leading to a surge in Zomato's stock price.

Trading at over 100 times forward earnings, the company's stock valuation far exceeds that of its global peers, including Uber, Deliveroo, and Meituan.

Zomato's Q4 results underscore its resilience and strategic foresight in navigating challenging market conditions.

With a solid track record of profitability and robust growth prospects, Zomato remains well-positioned to capitalise on emerging opportunities in the food delivery and quick commerce sectors, further solidifying its status as a leader in the industry.