Zomato, the leading food delivery platform, showcased impressive financial performance in the quarter ending on March 31, 2023. The company narrowed its net loss to Rs 188.2 crore, a notable improvement compared to the loss of Rs 359.7 crore incurred in the same quarter of the previous year. Bolstering its financial standing, Zomato recorded a remarkable 69.7% increase in revenue from operations, reaching Rs 2,056 crore, with its food delivery business contributing significantly to this growth, surging by 19.2% and reaching Rs 1,530 crore.

Despite the challenging circumstances faced by the food delivery segment in recent quarters, Zomato defied the odds and achieved a 12.2% increase in gross order value, which amounted to Rs 6,569 crore. This demonstrated the company’s resilience and ability to navigate the market successfully.

Looking ahead, Zomato has set ambitious goals to attain positive adjusted Ebitda and net profit on a consolidated basis within the next four quarters, encompassing BlinkIt’s operations. On the operational front, Zomato remained consistent with its previous commitments, having achieved break-even excluding its quick commerce business, BlinkIt. Notably, the company reported an Ebitda of Rs 28 crore for Q4FY23.

Regarding adjusted Ebitda, Zomato’s consolidated loss amounted to Rs 175 crore, a significant improvement compared to the loss of Rs 225 crore in the previous year. It is important to note that Zomato calculates Ebitda by factoring in the difference in share-based payment expenses and rental for the respective period.

Commenting on the company’s performance, Deepinder Goyal, the founder and CEO of Zomato, acknowledged the temporary slowdown experienced from late October 2022 to January 2023. However, he expressed optimism by stating, “We had started seeing green shoots of recovery in the first week of February 2023.”

Zomato’s food delivery business remained its primary revenue driver, followed by its business-to-business arm, Hyperpure, and BlinkIt. The adjusted revenues generated by these divisions amounted to Rs 478 crore and Rs 363 crore, respectively.

Looking to the future, Goyal emphasized Zomato’s commitment to further expanding the adjusted Ebitda margin within the food delivery business. He aims to surpass the current margin of 1.2% and achieve the stated goal of +4-5% of GOV. This target translates to an annual cash operating profit of over Rs 1,000-1,300 crore, considering the current scale of Zomato’s food delivery business.

Zomato’s robust financial results demonstrate its resilience, adaptability, and determination to thrive in the ever-evolving food tech industry.