Zomato’s Q3 Results Analyzed

Zomato, the company behind popular food delivery apps, had a really strong third quarter. They made a lot more money – up 200% – but also had a big drop in profit. Let’s break down what happened to see what’s driving this.

Key Points

• Significant Revenue Growth: Revenue jumped 200% to ₹16,315 crore.
• Profit Decline: Net profit decreased by 73% to ₹102 crore.
• Quick Commerce Boom: Revenue from quick commerce soared 776% to ₹12,256 crore.
• Store Rollout Delay: Store opening targets missed due to pollution restrictions.
• Going-Out Business Weak: NOV declined, impacting EBITDA margins.
• Leadership Change: Deepinder Goyal stepped down, Albinder Singh Dhindsa took over.

Revenue & Growth

Zomato made a huge amount of money in Q3 – 200% more than last year! This is mainly because of their quick commerce business, which saw a massive jump. They also increased the amount people were spending on each order (called ‘Net Order Value’). However, they reported a big drop in their profit due to the increased spending and operating costs.

Quick Commerce Success

The quick commerce part of the business – think fast food delivery – was the biggest winner. They made a staggering 776% more money than last year. This was helped by customers ordering more frequently, and because they started counting the full price of items sold, not just the delivery fees.

Challenges and Delays

Unfortunately, Zomato didn’t open as many new stores as they planned. Pollution problems in their main city caused delays, and the team was focused on handling a huge number of orders during Diwali. They still plan to open 3,000 stores by 2027.

Financial Performance

The company’s overall profit was down, but their ‘adjusted EBITDA’ – a measure of how much money they were making after certain costs – was up 27%. They expect to make a profit soon, with the help of a new CEO.

Leadership Change

Deepinder Goyal, who used to be in charge, decided to step down, and Albinder Singh Dhindsa, who runs Blinkit, will now lead Zomato. The company’s stock price went up a bit because of these changes.

Ultimately, Zomato is focused on growing its profitable business areas and navigating operational challenges for sustained success.