Zomato Q2 Results 2023 Profit Sheet Details Shared

Zomato, a leading name in food delivery, came out as an example of recovery and success in the recent fiscal quarter, overcoming market expectations with its second-quarter results for 2023. The food delivery business not only recovered its earlier losses but also made a respectable profit. The increase in profitability, caused by a significant year-over-year sales gain in its delivery service, is a turning point in Zomato’s roadways towards long-term success.

This result was unexpected for experts who thought the company would lose money again, but they were pleasantly surprised as the company’s financials created a picture of strong earnings, bringing in fresh investor confidence in the 10% increase in share prices.

Zomato Q2 2023 Net Profit and Revenue

Financial Metric Q2 2023 Figure Comparison
Net Profit ₹360 million ($4.32m) Recovered from a loss of ₹251 crore
Revenue from Operations ₹28.48 billion 71.4% increase YoY
Consolidated Adjusted Revenue ₹32.27 billion 53% increase YoY
Adjusted EBITDA ₹410 million The positive shift from a negative ₹192 million

Zomato reported a net profit of ₹360 million ($4.32 million) in Q2 2023, a significant recovery from a loss of ₹251 crore in the same quarter of the previous year.  This is the amount of income that remains after all operating expenses, taxes, interest, and preferred stock dividends have been deducted from a company’s total revenue.

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The revenue from operations was ₹28.48 billion, marking a 71.4% increase from the previous year’s quarter. Consolidated adjusted revenue also rose by 53% year-on-year to ₹32.27 billion. The earnings before interest, taxes, depreciation, and amortization (EBITDA) adjusted for certain factors stood at ₹410 million for the quarter, showing a positive shift from a negative ₹192 million in the previous year’s corresponding quarter.

Market Reaction

After the announcement of Zomato’s Q2 2023 results, the company’s stock price increased sharply. Analysts are hopeful, with some expecting that Zomato’s stock could reach its all-time high of ₹160 within a year, supported by strong quarterly earnings.

The stock’s performance reflected the market’s excitement, with Zomato’s shares rising more than 6% on the National Stock Exchange, establishing a new 52-week high of ₹123.9. This change was followed by an upgrade by CLSA, which shifted its rating of Zomato to ‘outperform’ from ‘buy’.

The outstanding financial report, which announced a net profit of 36 crore, generated a more than 10% jump in Zomato’s stock price, which reached a 52-week high and showed an increase in the confidence of investors. Zomato’s market valuation reflected this trust, with the company’s market worth exceeding 1 lakh crore after its second continuous successful quarter.

Cost Optimization

Zomato has been smart about saving money where it can, which helped its profits grow this quarter. They’ve gotten better at planning delivery routes, so riders use less fuel and time to deliver food. They’re also using more technology to handle orders and talk to customers, which cuts down on mistakes and the need for a big customer service team. Also, Zomato has become more careful about how much it spends on ads, making sure that they are actually bringing in more customers.

Revenue Streams

Zomato makes money from more than just delivering food. They also help people find and book tables at restaurants, and they sell fresh ingredients to those restaurants through a service called Hyperpure. Plus, they have a membership program called Zomato Pro that gives members discounts and perks. All these different ways of making money help Zomato stay strong, even if one part of the business does not earn much.

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