Zomato Q4 Results Highlights: Net profit increases 26.8% QoQ at ₹175 crore, Blinkit turns adjusted EBITDA positive

"GOV growth is a function of AOV growth and Order growth. Order growth is in-turn a function of transacting customer growth and order frequency growth. In Q4FY24, the 28% YoY GOV growth was driven by 5% YoY AOV growth and 23% YoY Order growth. And the 23% YoY Order growth was a result of 14% YoY growth in average monthly transacting customers and 7% YoY growth in average monthly order frequency," Rakesh Ranjan, CEO, Food Delivery, Zomato said.

"I think customers value the convenience and predictability layer Zomato has built on top of the services offered by restaurants, which is why the growth of Zomato is a tad bit higher than that of the restaurant industry. We believe that we can continue to grow faster than the overall restaurant industry (and therefore power a significant part of the growth of the restaurant industry) if we continue to innovate using our customer-first principles, while creating value for all our other stakeholders – our restaurant partners, and our delivery partners," Deepinder Goyal, CEO of Zomato, said.

"I don’t think we have the time and bandwidth to be excited about, or think of any new business at the moment. Our plates are so full with the four businesses that we have that we look at any other opportunity with the lens of 'can we somehow avoid doing this', rather than 'wow, this looks exciting'. We have only always started a business to protect/ grow something that we already have, with a singular goal – survive," he said.

"Even when we acquired Blinkit, we outlined that one of the key reasons to acquire the business was to defend the food delivery business, because a well entrenched quick commerce player could pose an easy threat to the food delivery business in the long term. I believe the key to building an organisation which lasts is to not aim for size (and let it be a by-product), but to aim for survival. As Simon Sinek said in his book 'The Infinite Game' – all you should strive for is to stay in the game, and you have to stay in the game for long enough to win. But then, the game is never really over. Only the players keep changing," Goyal added.

Moreover, he saod, "Our internal name for our organisation (Zomato + Blinkit + Hyperpure + Going-out) is called Eternal. But, Eternal can never be the state of an organisation, because, the moment you think that an organisation is going to last forever, that’s the day it starts dying. Ironically, the only way to ensure that an organisation lives forever, is to forever remain in the paranoia that we will/must die".

"We are just grateful that the bet that we took on Blinkit worked out just fine and we are not at a point where Akshant and I are getting fired for an expensive acquisition gone wrong. We are also grateful to our Board, for believing in the distant bet we were taking at that time, and helping us bring it all together quickly over the last few quarters," Deepinder Goyal, CEO of Zomato, said.

"Honestly, we really could not have imagined the current state of all four of our businesses – food delivery, Blinkit, Going-out and Hyperpure. I think the team has executed phenomenally well over the last couple of years, and continues to stay (more or less) focused with their ears to the ground," he added.

Furthermore, he said, "While we are happy to be where we are today but also equally scared. It feels like we have lost the right to screw up, or make mistakes. Our journey in the last two years has, in so many ways, increased the expectations our stakeholders have from us and we will try our best to live up to them".

Gross order value (GOV) across Zomato's business-to-consumer (B2C) (food delivery, quick commerce and going-out) accelerated to 51% YoY (5% QoQ) to INR 13,536 crore.

• Food delivery GOV grew 28% YoY (-0.6% QoQ)
• Quick commerce GOV grew 97% YoY (14% QoQ), and
• Going-out GOV grew 207% YoY (25% QoQ)

Hyperpure’s business-to-business (B2B) revenue grew 99% YoY (11% QoQ).

On the profitability front, consolidated adjusted EBITDA was ₹194 crore and improved by ₹369 crore as compared to the same quarter last year. Quick commerce business turned adjusted EBITDA profitable in the month of March and Hyperpure losses also reduced meaningfully.

• Share price: ₹198.9 (-1.1%)
• Open: ₹205.8
• High: ₹207.2
• Low: ₹193
• Previous close: ₹201.3
• Total market cap: ₹1,75,568 crore
• Free float market cap: ₹1,15,613 crore

In Q3 FY24, Zomato had reported a consolidated net profit of ₹138 crore, a jump of 283% from previous quarter. The revenue from operations was recorded at ₹3,288 crore.

• Zomato: Food ordering and delivery platform where customers can search and discover local restaurants, order food, and have it delivered reliably and quickly

• Blinkit: Quick commerce platform where customers can order everyday needs across thousands of products and have them delivered within minutes

• Hyperure: Hyperpure is a B2B platform supplying high quality food ingredients and other products

• Kaushik Dutta- Chairman & Independent Director
• Deepinder Goyal- Founder, MD & CEO
• Sanjeev Bikhchandani- Non-Executive Director
• Sutapa Banerjee- Independent Director
• Namita Gupta- Independent Director
• Gunjan Tilak Raj Soni- Independent Director
• Aparna Popat Ved- Independent Director

• Share price: ₹195.6 (-2.8%)
• Open: ₹205.8
• High: ₹207.2
• Low: ₹193
• Previous close: ₹201.3
• Total market cap: ₹1,72,655 crore
• Free float market cap: ₹1,13,515 crore

The auditor of Zomato subsidiaries Zomato Hyperpure and Blink Commerce has resigned with immediate effect. As a result, Deloitte Haskins & Sells, the food delivery company's auditor, has been appointed to make the audit process more efficient.

Batliboi & Associates, appointed as statutory auditors of the two wholly-owned subsidiaries for five years beginning April 1, 2023, till the conclusion of the 13th AGM, resigned w.e.f. May 12, 2024, Zomato said in a regulatory filing.

Zomato, a food delivery company, was founded by Deepinder Goyal and Pankaj Chaddah in 2008. It offers information, menus, and user reviews of restaurants and food delivery options from partnered restaurants. The company competes with Swiggy in the food delivery and hyperlocal space.