Online food delivery giant Zomato reported a sharp decline in its net losses as the figure for the quarter ended on December 2021 stood at Rs 63 crores as against Rs 352 crores for the quarter ended on December 2020. The major that assisted in narrowing its losses was a one-time gain of Rs 316 crores from the sale of its stake in Fitso. If not for this gain,the true net loss would’ve been Rs 379 crores, well over the net loss last year.
Zomato’s dining out businesses saw growth as lockdown conditions eased up and demand for restaurant meals grew. Its gross revenues grew 82% YoY to Rs 1,112 crores against Rs 609 crores last year as its food delivery business strengthened. The company’s Gross order value grew 84.5% YoY in the quarter to Rs 5,500 crores. Its EBITDA loss reduced to Rs 270 crores from Rs 310 crores in the previous quarter.
Currently, Zomato has plans to invest $400 million into its q-commerce business Blinkit. Zomato’s IPO in mid 2021 was considered a good performer as the stock grew almost 20% within the first 2 days of listing. However, in the past few weeks, the stock fell over 20% and fell over 6% after its results were announced to close at a price of Rs 88.70 per share.
Highlight by Aman Agarwal.