Zomato Q1 net loss narrows to Rs 186 cr

Food delivery giant Zomato Ltd said on Monday its quarterly loss narrowed helped by an increase in orders for restaurant meals on its platform.

Zomato's net loss was at Rs 186 crore for the quarter ended 30 June, 2022. The company had posted a net loss of Rs 356 crore year ago, it said in a regulatory filing.

Its revenue from operations came in at Rs 1,413.9 crore, up 67.44 percent against Rs 844.4 crore logged in the year-ago quarter.

However, the company's adjusted revenue grew by 18 per cent quarter-over-quarter (QoQ) and 56 per cent year-over-year (YoY) to Rs 1,810 crore in Q1FY23.

At the same time, its adjusted EBITDA loss reduced to Rs 150 crore (-8 per cent of Adjusted Revenue) in the quarter under review as compared to Rs 220 crore (-15 per cent of Adjusted Revenue) sequentially.

Zomato's revenue from operations, which mostly comes from its mainstay food delivery and related fees it charges restaurants for using its platform, surged 67 per cent to Rs 1,414 crore from Rs 844 crore a year ago.

Gross order value - or the total value of all food delivery orders placed online on Zomato's platform - for the first quarter rose 41.6 per cent to Rs 643 crore from a year ago, with average monthly transacting customers at 16.7 million.

"Margins are getting negatively impacted due to higher fuel costs and wage inflation," Chief Executive Deepinder Goyal said in a statement, adding that monthly transacting customers were likely to drive volume growth.

The domestic food delivery market is expected to grow three times over the next five years, helped by rising order frequency and user addition, with Zomato expected to maintain a market share in the range of 45-50%, analysts at Credit Suisse said in a note last month.

Shares of Zomato on Monday closed 1.07 per cent lower at Rs 46.35 apiece on BSE.