Zomato Net Loss Widens to Rs 356 Crore, Revenue Rises to 844 Crore: Q1 Report
In its first quarterly report since its IPO, Zomato reported a net loss of Rs 356 crore on a consolidated basis.
Zomato on Tuesday, 10 August, released its April-June quarter results for the financial year 2021-2022. In its first quarterly report since its IPO listing last month, Zomato said that it has incurred a net loss of Rs 356 crore on a consolidated basis.
The jump in the amount, which has risen significantly from its value of 99.8 crore in the previous year, has been attributed by the food delivery aggregator to the impact of the second wave of COVID-19.
"Q1 FY22 was also one of the most challenging quarters for our team. As the second COVID wave ravaged the nation, we were left scrambling to work on multiple things at the same time. At the peak of the second wave, almost 35% of our employees were battling COVID in their households. On top of it, we were executing very hard along with feeding India to source and distribute oxygen concentrators to as many hospitals in need as possible."Zomato CEO Deepinder Goyal
More From the Quarterly Report
In its quarterly report, Zomato indicated that its adjusted earnings before interest, tax, depreciation, and amortisation (EBITDA) loss rose by 42 per cent to Rs 170 crore.
"This is largely on account of non-cash ESOP expenses, which have increased meaningfully in Q1 FY22 due to significant ESOP grants made in the quarter pursuant to creation of a new ESOP 2021 scheme. This divergence in reported profit/loss and Adjusted EBITDA will continue going forward," the company said.
On the other hand, the company's total revenue from operations has increased to Rs 844.4 crore for this quarter. The value for the year-ago period had been ascertained as Rs 266 crore, Mint reported.
"Revenue growth was largely on the back of growth in our core food delivery business, which continued to grow despite the severe COVID wave starting April. On the other hand, COVID significantly impacted the dining-out business in Q1 FY22 reversing most of the gains the industry made in Q4 FY21," Zomato stated.
The food delivery company also reported an increase in its total expenses this quarter. The amount for the quarter under review was reported to be Rs 1,259.7 crore, as opposed to the year-ago value of Rs 383.3 crore. The hike has been attributed to a higher employee benefits expense of Rs 390.7 crore, and purchase of stock-in-trade at ₹74.7 crore, Mint reported.
The company's quarterly report comes a week after its platform crossed a billion orders. Indian food delivery Gross Order Value (GOV) in Q1 FY22 grew by 37 percent as compared to INR 45.4 billion from INR 33.1 billion in Q4 FY21.
"India food delivery business reported the highest ever GOV, number of orders, transacting users, active restaurant partners and active delivery partners till date in any quarter in our history," Zomato stated.
(With inputs from Mint)
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