New Delhi: Food delivery giant Zomato has announced a strong performance for the first quarter of the financial year 2024-25, with a consolidated net profit of Rs 253 crore, a significant jump from the previous year’s Rs 2 crore. The company’s revenue from operations also witnessed robust growth, surging to Rs 4,206 crore from Rs 2,416 crore in the corresponding period last year.
A key highlight of Zomato’s performance is its increased expenditure on advertising and sales promotions. The company shelled out Rs 396 crore during the quarter, marking a substantial 26.11% year-on-year increase compared to Rs 314 crore spent in the same period last year. This aggressive advertising push reflects Zomato’s focus on expanding its user base and market share.
Furthermore, the ad spend also witnessed a sequential growth of 1.79% from the previous quarter’s Rs 389 crore.
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Zomato’s EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) for the quarter stood at Rs 177 crore. The company’s core business segments, including food delivery, quick commerce, and going-out, collectively recorded a robust Gross Order Value (GOV) growth of 53% year-on-year, reaching Rs 15,455 crore. Food delivery, quick commerce, and going-out segments saw individual GOV growth of 27%, 130%, and 106% respectively on a year-on-year basis.
The impressive financial results underscore Zomato’s strong market position and its ability to capitalize on the growing online food delivery market in India. The company’s strategic investments in advertising and expansion of its services appear to be paying off.
