Zomato Q1 results: Net profit jumps multifold to ₹253 cr on higher order value

Zomato Q1 results: Net profit jumps multifold to ₹253 cr on higher order value/Reuters

MINT | August 1, 2024 | 04:15 PM IST | Breaking News | Follow on Google News

Zomato Q1 results: Net profit jumps multifold to ₹253 cr on higher order value

Zomato Q1 results: Net profit jumps multifold to ₹253 cr on higher order value

Bengaluru: Food delivery company Zomato’s net profit surged to ₹253 crore in the quarter ended 30 June from ₹2 crore a year earlier on the back of higher gross order value across its food delivery, and quick commerce verticles.

Quick commerce saw the highest gross order value growth of 130%, while food delivery and going out verticals grew 27% and 106%, respectively, the company said in a statement on Thursday. 

Zomato’s consolidated adjusted Ebitda or operating profit grew to ₹299 crores in the quarter compared to ₹12 crores a year earlier.

The company aims to have 2,000 stores for its quick commerce verticle Blinkit by the end of 2026. “Most of these stores would be in top 10 cities in India. Beyond the large cities, the size of the market is still undiscovered,” Blinkit co-founder and CEO Albinder Dhindsa said in the statement. 

He added that it depends on a number of factors, including speed, execution and supply chain efficiencies. “If everything goes as planned, we plan to get to 2,000 stores, latest by the end of 2026 while remaining profitable,” Dhindsa said.

Blinkit’s average GOV per store has grown to about ₹10 lakh today at 639 stores from ₹6 lakhs per day per store when we were at 383 stores. For the top 50 stores, it is ₹18 lacs per day per store, and growing, the statement said.

“We believe that most of our stores today are under utilised from a capacity standpoint and hence GOV per day per store should continue increasing from here even as we aggressively scale store count. From a demand standpoint, customer wallet share should keep increasing as we expand the selection available on our platform,” Dhindsa said.

MINT