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Zomato's Q2FY24 Financial Performance Review

Nov 3, 2023

By: BlinkX Research Team

In this financial performance review, we delve into the results of Zomato for the second quarter of fiscal year 2024 and analyze key metrics, including revenue, expenses, net profit, and margin.

REVENUE: 
Zomato reported a total income of ₹3,060 crores in Q2FY24, representing an impressive surge of 17.83% compared to the preceding quarter. Year-on-year, when the revenue grew from ₹1,831 crores by a staggering 67.12%. 

EXPENSES: 
Total expenses for Q2FY24 reached ₹3,039 crores, which marked an increase of 16.35% sequentially. In Q2FY23, the company incurred expenses of ₹2.092 crores, indicating a rise of 45.27%. While expenses are growing, the increase in revenue is notable.

NET PROFIT: 
Zomato reported a net profit of ₹36 crores in Q2FY24, a notable shift from the net loss of ₹251 crores in the same quarter the previous year. This indicates a significant improvement in the company's financial performance. In the preceding quarter, Q1FY24, Zomato reported a meager net profit of ₹2 crores, and the substantial increase in Q2FY24 is a positive sign.

MARGINS: 
Zomato's margin in Q2FY24 was 1.18%, reflecting substantial growth compared to the margin of -13.71% in Q2FY23. This significant turnaround from negative margins to positive margins demonstrates the company's improved operational efficiency and profitability. On a sequential basis, Zomato's margin increased from 0.08% in Q1FY24 to 1.18% in Q2FY24.

In conclusion, Zomato's financial performance in the second quarter of fiscal year 2024 exhibits impressive revenue growth, a positive shift from net losses to net profit, and substantial margin improvement. The company's ability to increase revenue while managing expenses efficiently has contributed to this turnaround.

Stay tuned for more updates on upcoming financial performances.