InvestorQ : How did Zomato manage to narrow its losses for the June quarter?
Dilmini Mercia made post

How did Zomato manage to narrow its losses for the June quarter?

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Dawn Cherian answered.
1 week ago
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For the first quarter ended on June 202, the recently listed Zomato Ltd (which is also one of India’s leading digital food aggregator), reported net loss of Rs186 crore. However, it must be noted that this reflects a halving of net losses compared on a yoy basis and also on a sequential basis. In the June 2022 quarter and in the March 2022 quarter, the net losses of Zomato stood at around Rs360 crore, so there is visible improvement.

The good news for Zomato was that the top line revenues showed robust growth of 67.45% on a yoy basis at Rs1,414 crore. Even if evaluated on a sequential basis, there was 10% growth in the gross order value (GOV) at Rs6,430 crore in Q1FY23. In terms of profitability, Zomato also saw sharp growth in revenue per order. The food delivery business of Zomato has already touched EBITDA breakeven in the March 2022 quarter. However, the big overhang now is the likely impact of the Blinkit acquisition, which appears quite expensive.

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