Zomato’s losses widened in the third quarter of the financial year 2023, as the company’s quick commerce acquisition, Blinkit, continued to bleed – creating a negative sentiment towards the company’s stock – even as it’s core food delivery business neared adjusted EBITDA profitability. Shares of the food delivery company sinked over 6% to hit Friday’s intraday low of ₹50.35.
What Happened? Foodtech giant Zomato released its financial results for Q3 2023 on Thursday and reported consolidated losses of ₹346.6 crore, up 38% from ₹250.8 crore in the previous quarter.
There are bright spots too, with one of the key highlights being the rise in operating revenue of ₹1,948.2 crore during the period, up 17% from ₹1,661.3 crore in the previous quarter.
It is worth noting that the financial statements of December 2021 did not feature Blinkit’s performance, which was acquired by the company in August 2022. Besides, the preceding September quarter consolidated Blinkit's numbers for only 50 days.
Zomato’s adjusted EBITDA loss excluding its quick commerce business Blinkit stood at ₹38 crore in Q3 FY23 compared to ₹272 crore in the corresponding quarter last year. After consolidating Blinkit’s numbers, Zomato's adjusted EBITDA loss dropped to ₹265 Cr during the quarter under review.
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Zomato's adjusted revenue for its food delivery business declined to ₹1,565 crore in the December quarter of FY23 from ₹1,581 crore in the preceding quarter. Average monthly transaction customers also declined quarter-on-quarter to 17.4 million from 17.5 million.
On a year-on-year basis, Zomato managed a total adjusted revenue growth of 66% to ₹2,363 crore in Q3, the cash-guzzling Blinkit business burdened the food-tech giant with losses.
The company’s business-to-business focussed Hyperpure venture generated adjusted revenue of ₹421 crore in Q3 FY23 as against ₹334 crore in Q2 FY23.
Price Action: Zomato’s share price dropped 4.41% to ₹52.00 as markets opened on Friday.
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