Food aggregator and delivery giant Zomato Ltd posted its Q4 FY22 results on May 23, 2022.
The company’s net loss for the period widened to Rs 359 crore from a net loss of 67 crore, up by 434% QoQ (Quarter on Quarter). On a YoY (Year on Year) basis, the net loss was up 168%.
However, the company posted a healthy revenue, driven by healthy growth in order volumes. The revenue from operations grew by nearly 9% QoQ to Rs 1,211 crore in the quarter under review from Rs 1,112 crore in the previous quarter. The revenue from operations was up 75% YoY to Rs 1,211 crore in Q4 FY22 from Rs 692 crore in Q4 FY21.
Zomato Ltd total income was up 7.22% QoQ and 80% YoY to Rs 1,350 crore in the quarter under review from Rs 1,259 crore in the previous quarter and Rs 750 crore in the year-ago period.
However, the company’s expenses outweighed its revenue. Zomato’s employee benefits expense was up 112% YoY to Rs 406 crore from Rs 191 crore in the last year period. There was almost a two-fold YoY increase in the company’s delivery and related charges which came in at Rs 545 crore against Rs 206 crore in the year-ago period.
Zomato’s subsidiary Hyperpure launched in another city in the quarter taking its presence to 10 cities. The company supplied over 34,000 unique restaurants in this quarter – up from 27,000 restaurants in Q3 FY22. This implies penetration of nearly 17% of the 2.05 lakh restaurants who worked with us in our food delivery business in the last quarter.
The company’s scrip closed in the red at Rs 57.05, after taking a dip of 1.72% after the end of the intraday trading session on May 23, 2022, ahead of the company’s quarterly results.
Deepinder Goyal, MD and CEO, Zomato Ltd said, “We did see low QoQ growth in Q3FY22 as dining-out and travel opened up post-COVID. We believe that was a one-time correction of our growth trajectory on the back of two strong quarters. We think our growth trajectory is back on track, and we don’t foresee “post-COVID ramifications” affecting our growth rate anymore. Having said that, even before COVID, growth in our business has been lumpy (and not linear) – so it is essential to take a long-term view of our business”
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Research Analyst: Bavadharini KS