Food delivery giant Zomato has released its Q1 FY25 results, where it reported a profit of Rs 253 crore. This was a jump of 45 per cent from Rs 175 crore on a quarter-on-quarter (QoQ) basis.
The company’s revenue from operations increased 74 per cent to Rs 4,206 crore in Q1 FY25. This was an increase from Rs 2,416 crore in the same quarter of the previous year.
Additionally, earnings before interest, tax, depreciation, and amortization (EBITDA) for the quarter reached a positive Rs 177 crore, compared to an EBITDA loss of Rs 48 crore in the same quarter the previous year.
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After the results were out, the share price of Zomato increased by 3.68 per cent to Rs 237.90. Speaking about the intense competition in the quick commerce segment, Albinder Dhindsa, CEO of Blinkit, said in a letter addressed to shareholders that despite the high competitive intensity in the quick commerce category, the company's focus on service quality and reliability has led to over 20 per cent growth this quarter, without matching the competitors' marketing and subsidy spending.
Dhindsa also added that the quick commerce segment intends to have 2,000 stores, latest by 2026, while remaining profitable. Zomato also has a dining business. Speaking about the same, Zomato CEO Deepinder Goyal said, “This dining-out business is now operating at a run-rate of $500m+ annualized GOV and is already profitable. We believe that there is an opportunity to further expand our going-out offering, building on top of our dining-out business.”
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Goyal mentioned that additional use cases for customers in the "going out" space include activities such as movies, sports ticketing, live performances, shopping, and staycations. Some of these services have already been launched, while others are currently in development.
With a focus on its going out business, Zomato will come up with a new app called District. Goyal said, "Building a one stop destination app for going-out could be a game changer for each of these use cases, and we intend to do exactly that with our new District (by Zomato) app. If we execute this well, we see going-out becoming the 3rd large B2C business emerging out of Zomato."
