Zomato Q3 results: Huge decline in Zomato’s net profit..but revenue up
Zomato announced its results for the October-December quarter of financial year 2024-25 on Monday, January 20. Net profit declined by 57.3 percent to Rs 59 crore. Popular food delivery app Meijer’s net profit fell due to margins. It is spending heavily to open more centers to deliver orders on its instant commerce platform Blinkit.
The Deepinder Goyal-led food delivery and hyper-local quick commerce giant reported 64.4 per cent growth in revenue from operations in the third quarter of the current financial year. 5,405 crores. Gross order value (GOV) of B2C business (instant commerce, food delivery, take-out) grew 57 per cent to Rs. 20,206 crores.
Key metrics in food delivery business
Revenue grew nearly 22 percent in the quarter. Blinkit, the market leader in the country’s instant commerce sector, has doubled its revenue. Zomato’s earnings before interest, taxes, depreciation and amortization (EBITA) stood at Rs. 51 crore to Rs. It increased to Rs 162 crore.
The total cost of Zomato is Rs. Rs 3,383 crore. 5,533 crores. While Blinkit is growing faster than food delivery, it faces competition from rival Swiggy’s Instamart, startup Zepto, Flipkart and Big Basket. During the quarter Blinkit posted Rs. Net loss of Rs 103 crore.
Blinkit will reach the 2,000 store mark by December 2025. Zomato has announced that Blinkit will cross the 1,000 store mark in the December quarter of 2024. The company’s EBIT margin increased from 1.6 percent to three percent. Blinkit reported EBITDA loss of Rs 30 crore. During the same period last year Rs. Positive EBITA of Rs 48 crore was recorded.
46 percent stake
Zomato, which has about 46 per cent market share in the instant commerce segment, has increased discounts and free deliveries by investing in expanding the number of ‘dark stores’ and warehouses to ship orders in urban centres. Zomato share price fell 3.14 per cent to Rs 1 on BSE. Closed at 240.95.
Brokerage firms say Zomato is seen as the most flexible player in the hyperlocal delivery space. According to experts at JM Financial, Zomato is the only major hyperlocal delivery company in the country. Generating free cash flow without compromising top line growth.
This indicates strong enforcement capabilities of the owner. This assures that Zomato is the best-positioned company to face the emerging competitive pressures in fast-growing commerce. Therefore, Zomato is preferred over Swiggy among the two listed hyperlocal delivery companies, said analysts at JM Financial.
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