Zomato's net profit turns stale with 77 pc decline at Rs 39 crore in Q4

New Delhi, May 1 (IANS) Eternal Ltd (formerly Zomato) on Thursday reported a massive 77 per cent decline in consolidated net profit at Rs 39 crore in the fourth quarter (Q4 FY25) -- from Rs 175 crore in the year-ago quarter.

On the quarterly basis, the food delivery major Zomato, which owns Blinkit, suffered a net profit loss of 33 per cent -- from Rs 59 crore in October-December period (Q3 FY25).

Total expanses grew 67 per cent (on-year), from Rs 3,636 crore to Rs 6,104 crore. On QoQ basis, the expenses increased over 10 per cent.

The food delivery company's consolidated revenue from operations grew 64 per cent to Rs 5,833 crore, as against Rs 3,562 crore in the corresponding January-March quarter of the previous financial year.

During the quarter under review, Zomato's total income rose to Rs 6,201 crore, against Rs 3,797 in the year-ago period. It's expenses also shot up to Rs 6,104 crore, from Rs 3,636 crore.

Zomato's shares closed at Rs 232.5 apiece on the BSE, up 0.58 per cent.

According to the company’s stock exchange filing, Blinkit has added 294 net new stores in Q4, and is on track to get to 2,000 stores by December 25.

“We don’t see any long-term structural reason for this slowdown, as the fundamentals - low penetration of restaurant food and increasing urbanisation and per capita income in India - remain unchanged,” said Deepinder Goyal, Founder and CEO, Eternal.

“We have a number of promising initiatives in the pipeline - hoping some of them will work and lead to higher growth, without compromising on profitability, he added.

Starting Q4 FY25, the company has started reporting net order value or NOV (in addition to GOV) for its B2C businesses (food delivery, quick commerce and going-out).

“NOV of our B2C businesses grew 53 per cent YoY (5 per cent QoQ) to Rs 17,440 crore in Q4 FY25,” informed the company.

According to Albinder Dhindsa, Founder and CEO, Blinkit, they will continue to focus on improving customer experience with more consistent delivery and fulfillment experience and increase the breadth of product categories that customers can reliably buy from Blinkit.

--IANS

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