Foodtech giant Zomato on Monday said its consolidated net loss for the quarter ended March narrowed to Rs 187.6 crore, down 48 percent, as compared to Rs 359.7 crore in the corresponding quarter of last year. Revenue from operations, meanwhile, climbed 70 percent to Rs 2,056 crore, as against Rs 1,211.8 crore in the same quarter last year.

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EBITDA or Earnings Before Interest, Taxes, Depreciation, and Amortization for the March quarter came in at Rs 225 crore as against Rs 366 crore loss in the December quarter and Rs 449.7 crore in the same quarter a year ago.

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Zomato said its business, excluding quick commerce, turned positive adjusted Ebitda, in the quarter under review. The company said it is aiming to be positive adjusted Ebitda (and also PAT) including quick commerce within the next four quarters.

"In food delivery, over the last five quarters, we have improved our margins meaningfully while further strengthening our market position. We will continue with the same mindset as we look to further expand the Adjusted EBITDA margin (from the current 1.2 percent) to our stated goal of +4-5 percent of GOV (which would translate to Rs 1,000 to 1,300 crores of annual cash operating profit at the current scale of the food delivery business)," said Zomato CEO Deepinder Goyal.

The mainstay food delivery business reported a revenue of Rs 1,530 crore for the quarter as against Rs 1,284 crore in the year-ago period. The business-2-business (B2B) vertical reported a revenue of Rs 478 crore, compared to Rs 194 crore, a year ago.

Meanwhile, quick commerce or the Blinkit business posted a revenue of Rs 363 crore as against Rs 301 crore in the previous quarter.

The gross order value in the food delivery business surged to Rs 6,569 crore as against Rs 5,853 crore a year ago, but dipped from Rs 6,680 crore a quarter ago.

On ONDC, Zomato said it welcomes all innovations that could help the restaurant industry in India grow. "We continue to watch the ONDC progress closely and learn from it."

Shares of Zomato settled 1.34 percent higher at Rs 64.35 apiece in Friday's trade. The average target price of the stock is Rs 65, which shows an upside potential of 1.56 percent from the current market levels, according to data from Trendlyne.

First Published:May 19, 2023 4:29 PM IST