Today marks a remarkable milestone for Zomato as the company reports a significant surge in its financial performance for Q1 FY25. The foodtech giant has shown impressive growth across various metrics, reflecting its resilience and strategic advancements in the competitive food delivery industry. Let’s dive into the details of Zomato's latest quarterly performance and understand the factors driving its impressive 100% returns.

Stellar Profit Growth

Zomato’s consolidated net profit has seen an extraordinary increase, jumping multifold year-on-year (YoY) to INR 253 Cr in Q1 FY25. This is a significant leap from the modest net profit of INR 2 Cr reported in Q1 FY24. On a quarter-on-quarter (QoQ) basis, the net profit surged by 45% from INR 175 Cr in Q4 FY24. This remarkable profit growth underscores Zomato's ability to capitalize on its market position and execute its business strategies effectively.

Revenue Surge

The company's revenue from operations also experienced a substantial boost, soaring by 74% YoY to INR 4,206 Cr in Q1 FY25 from INR 2,416 Cr in the corresponding quarter last year. This growth is indicative of the increasing demand for Zomato’s services and the successful expansion of its business operations. Notably, the operating revenue rose by 18% from INR 3,562 Cr in Q4 FY24, further highlighting the upward trajectory of the company’s financial health.

Blinkit: A Key Driver

One of the significant contributors to Zomato’s robust performance is Blinkit, its quick commerce vertical. Blinkit witnessed a massive 145% jump YoY and a 22.5% rise QoQ in revenue, reaching INR 942 Cr in Q1 FY25. The gross order value (GOV) for Blinkit stood at INR 4,923 Cr, more than doubling YoY. This impressive growth in Blinkit’s revenue and GOV signifies its vital role in driving Zomato’s overall financial success.

Core Food Delivery Business

While Blinkit has been a standout performer, Zomato’s core food delivery vertical also demonstrated healthy growth. The adjusted revenue for this segment increased by 30% YoY and 10% QoQ, amounting to INR 2,256 Cr in Q1 FY25. The GOV for the food delivery vertical was INR 9,264 Cr in the June quarter, marking a 27% rise YoY. These figures indicate sustained demand and strong market presence in the food delivery space.

Going-Out Business and Future Prospects

Zomato’s going-out business also showed remarkable progress, with its GOV jumping 106% YoY to INR 1,268 Cr in Q1 FY25. CEO Deepinder Goyal emphasized the potential for further expansion in this segment, building on top of the existing dining-out business. The introduction of ‘District (by Zomato),’ a one-stop destination app for going-out services, is poised to enhance the company’s offerings and attract more customers.

Managing Expenses

Zomato’s total expenses grew by 61% to INR 4,203 Cr in Q1 FY25, with delivery and related charges being the largest contributors. Despite this increase, the company expects the overall employee cost as a percentage of adjusted revenue to trend downwards in FY25 and beyond. Zomato’s ability to manage expenses effectively while driving growth is a positive indicator for its future financial stability.

Conclusion

Zomato's stellar Q1 performance, marked by significant profit growth and revenue surge, showcases the company's strong market position and strategic prowess. The impressive returns are a testament to Zomato's ability to innovate and adapt in a dynamic industry. As Zomato continues to expand its offerings and optimize its operations, the future looks promising for this foodtech major. For more insights into Zomato’s financial performance and industry trends, stay tuned to MBC Trading Platform.