Zomato Ltd Q4FY23 net loss nearly halves to Rs-188 crore on lower cash burn in the quarter
Zomato Ltd reported 69.66% higher revenues for the March 2023 quarter on consolidated basis at Rs2,056cr. Revenues were up 5.53% sequentially. For the quarter the company saw good traction across its 3 key verticals viz. food delivery, Hyper Pure (the B2B supplies vertical) and Blinkit (quick commerce vertical). On a yoy basis, the food delivery business saw gross order value growing from Rs5,863 crore to Rs6,569 crore. Averaging monthly transacting customers grew from 15.7 million to 16.6 million in food delivery business.
In the Hyper Pure vertical, the revenues more than doubling on a yoy basis while the number of unique restaurants billed for the B2B services rose yoy from 34,000 to 42,000. In the quick commerce Blinkit vertical, the GOV in the last 3 quarters went up from Rs1,172 crore to Rs2,046 crore. In the same period, the orders have surged from 22.2 million to 39.2 million, although the average order value has remained static over these quarters.
Financial highlights for Mar-23 compared yoy and sequentially
| Zomato Ltd | |||||
Rs in Crore | Mar-23 | Mar-22 | YOY | Dec-22 | QOQ |
| Total Income (Rs cr) | ₹ 2,056 | ₹ 1,212 | 69.66% | ₹ 1,948 | 5.53% |
| Operating Profit (Rs cr) | ₹ -142 | ₹ -225 | -36.75% | ₹ -238 | -40.21% |
| Net Profit (Rs cr) | ₹ -188 | ₹ -360 | -47.68% | ₹ -347 | -45.70% |
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| Diluted EPS (Rs) | ₹ -0.23 | ₹ -0.47 |
| ₹ -0.42 |
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| OPM | -6.91% | -18.53% |
| -12.19% |
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| Net Margins | -9.15% | -29.68% |
| -17.79% |
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The company did see a fall in monthly transaction customers as Zomato weeded out the unprofitable customers. That reduced cash burn. The company cash balance has been static in the last one year at Rs11,323 crore. ESOP costs of the company are likely to come down further in the coming fiscal year FY24, after a steep fall in FY23.