Zomato Q1 Results: Zomato posts 1st profit in a quarter on tax gain | India Business News

New Delhi: Aided by a tax gain, food delivery player Zomato on Thursday reported its first ever quarterly profit, beating its own estimate.

Strong growth in core businesses pushed up the company’s income by 64% to Rs 2,597 crore in the June quarter. But it came with a 48% growth in spending, estimated at Rs 2,612 crore, resulting in a pre-tax loss of Rs 15 crore. But supported by a Rs 17-crore deferred tax gain, the company reported a profit after tax of Rs 2 crore in the June quarter, as against a loss of Rs 186 crore a year ago.
“I can in hindsight say that most of our seemingly risky bets have changed the trajectory of the business significantly, much faster than expected,” founder and CEO Deepinder Goyal said in a letter to shareholders. The company is confident of robust growth in the coming months. “We believe we will continue to deliver over 40% year-on-year top line (adjusted revenue growth) for at least the next couple of years,” said CFO Akshant Goyal.

The food delivery business was aided by a recovery in demand in recent months after a few sluggish quarters. At the end of June 2023, Zomato had about 17.5 million monthly transacting customers. The firm’s Gold programme also drove higher frequency of ordering. It now contributes more than 30% to the food delivery GOV (gross order value). GOV for the food delivery segment increased to Rs 7,318 crore in the June quarter from Rs 6,425 crore in the year-ago period.