Zomato Q3 results: Net loss narrows to Rs 63 cr; revenue jumps 82%

Food aggregator Zomato on Thursday reported a narrowing of consolidated net loss at Rs 63 crore for the quarter ending 31 December, 2021. The firm had posted a net loss of Rs 352.6 crore in the year-ago period. The company had posted a net loss of Rs 429 crore in the previous September quarter.

Revenue from operations came in at Rs 1,112 crore, up 82.47 per cent against Rs 609.4 crore in the year-ago quarter.

However, the company's adjusted revenue – on a year-on-year basis, saw a 78 per cent growth in to Rs 1,420 crore. On a sequential quarter-on-quarter basis, it was flat. 

Adjusted revenue is the sum of revenue from operations (from all businesses) and customer delivery charges in our food delivery business.

Further, the company's gross order value (GoV) grew by 84.5 per cent year-on-year and 1.7 per cent quarter-on-quarter to Rs 5,500 crore.

Gross Order Value is defined as the total monetary value of all food delivery orders placed online on Zomato in India including taxes, customer delivery charges, gross of all discounts, excluding tips.

The Deepinder Goyal-led company also declared a consolidated exceptional gain of Rs 316 crore in the December quarter.

Adjusted EBITDA (earnings before interest, tax, depreciation and amortisation) loss reduced to Rs 270 crore sequentially as compared to Rs 310 crore in the previous September, driven by rationalizing spends across various businesses and functions.

Moreover, Zomato's number of orders grew 93 per cent YoY and 5 per cent QoQ. Average order value (AOV), which
includes customer delivery charges) shrunk by approximately 3 per cent QoQ, mostly on account of reduction in customer delivery charges.

"Zomato continues to benefit from the changes we are helping to drive in the overall restaurant industry."

"The consumption of restaurant food has grown manifold in India on the back of higher accessibility, choice and affordability of restaurant food. The restaurant industry in India is highly fragmented with ~90% of the revenue coming from standalone restaurants and only ~10% from chains. In this ecosystem, we have played our part by helping small restaurants level the playing field for themselves and get discovered by new customers," Zomato further stated.

It also sad that the average monthly active food delivery restaurants have grown by 6x and average monthly transacting customers have grown by 13x on Zomato over the past 5 years.

Shares of Zomato on Thursday closed 0.32 per cent higher at Rs 94.50 apiece on BSE.