Zomato | Zomato's revenue grows to INR 844 crore as losses widen 168% for April-June quarter

Zomato's revenue grows to INR 844 crore as losses widen 168% for April-June quarter

While INR 806 crore of operational revenue came from India, revenue of INR 31 crore was logged from the UAE, and the balance from other markets.

zomato said its operational revenue increased by 22 percent to INR 844 crore in April-June, while net losses rose over 168 percent from the previous quarter to INR 360 crore, as the food delivery platform presented its maiden quarterly earnings as a public company on Tuesday.

While INR 806 crore of operational revenue came from India, revenue of INR 31 crore was logged from the UAE, and the balance from other markets.

Zomato said its adjusted revenue — which is a combination of revenue from operations and customer delivery charges — increased 26 percent to INR 1,160 crore in the June quarter, compared to around Rs 920 crore in the March quarter.

“Revenue growth was largely on the back of growth in our core food delivery business, which continued to grow despite the severe Covid-19 wave starting April,” said cofounder and chief executive Deepinder Goyal in the company’s filings to the Bombay Stock Exchange.

Zomato said the increase in losses is due “largely on account of non-cash Esop (employee stock ownership plan) expenses, which have increased meaningfully in Q1 of FY22 due to significant Esop grants made… pursuant to creation of a new Esop 2021 scheme.’

The Gurgaon-based company, which listed successfully on the BSE last month, reported total losses of INR 134 crore in the March quarter, with revenue at INR 692 crore. In the June quarter, it earned revenue of INR 266 crore, with losses of nearly INR 100 crore.

Zomato’s market capitalisation stood at a little over INR 98,000 crore as of Tuesday, as the stock closed at INR 124.95, down by more than 4 percent.

Spike In Orders
The company said the domestic food delivery business reported the highest ever gross order value (GOV) in the quarter under review, increasing by 37 percent to around INR 4,538 crore, compared to INR 3,315 crore in the previous quarter.

GOV is the total monetary value of all food delivery orders placed on Zomato India, including taxes, customer delivery charges, gross of all discounts, excluding tips.