Zomato's Q2 net profit surges by 389% to ₹176 crore
What's the story
Leading food delivery platform Zomato has reported a whopping jump in its consolidated net profit for the second quarter of FY25.
The company's net earnings jumped by 389% to ₹176 crore, compared to ₹36 crore in the same quarter last year.
However, the number missed market estimates which had predicted a profit after tax (PAT) of ₹260 crore.
Revenue rise
Zomato's operational revenue and EBITDA witness significant growth
Zomato also saw a massive jump in its operational revenue, which grew 68% year-on-year (YoY) to ₹4,799 crore.
The company's adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) for the quarter also saw a massive jump.
It grew to ₹331 crore from a mere ₹41 crore in the same quarter last year.
Sector performance
Zomato's food delivery and quick commerce sectors show progress
Zomato's food delivery business posted an adjusted revenue growth of 21% YoY at ₹2,340 crore. The segment's gross order value (GOV) also grew 21% YoY to ₹9,690 crore.
Meanwhile, the company's quick commerce business Blinkit saw a 129% YoY growth in adjusted revenues at ₹1,156 crore.
However, its EBITDA continued to be in the negative at (-₹8 crore), albeit lower than last year's loss of ₹124 crore.
Financial overview
Zomato's dining-out business and cash balance
Zomato's dining-out business also did well with revenues growing 214% YoY and GOV growing 171% YoY for the July-September 2024 period.
However, the company's cash balance fell by ₹1,726 crore over the previous quarter.
This was mainly due to a deal consideration of ₹2,014 crore for acquiring Paytm's entertainment ticketing business.
After the reduction in cash balance, Zomato's board has also approved raising another ₹8,500 crore via a qualified institutional placement (QIP).