India’s leading food aggregator Zomato‘s Q4 FY22 results are out. The company presented a mixed bag of performance in the last fiscal quarter of 2022 albeit with a promising forecast for the quarters to come.
Zomato’s net loss in Q4 ballooned to INR 359.7 crore, which is nearly a three-fold increase from Rs 134.2 crore in Q4 FY’21.
On the positive side, Zomato’s revenue increased to INR 1,211.8 crores in Q4 FY’22, posting an increase of 75% from INR 692.4 crore during the year-ago quarter.
Experts believe that the jump in the Zomato loss was mainly caused by increasing expenses which went up from INR 885 crore in Q4 FY’21 to INR 1,701 crore in the quarter ending March 31, 2021.
Despite the mounting loss, the food delivery startup kept strengthening its market presence which is clearly reflected in the number of average monthly transaction customers that reached an all-time high of 15.7 million in Q4 FY’22.
“Likewise, average monthly active restaurant partners and delivery partners were at all time highs as well,” Zomato’s Chief Financial Officer Akshant Goyal said.
Due to the record-high number of average monthly transaction customers, the gross order value in the quarter also grew by 77% YoY to a record high of INR 58.5 billion in Q4 FY’22.
According to Zomato Q4 FY22 filing, the food delivery aggregator has expanded its presence to additional 300 cities in India, making its services available in 1,000+ cities across India.
The company is now aiming to deploy strategies that will squeeze the mounting losses without applying breaks to its expansion and growth.
“We are clear on what our long term shareholders expect of us and we are working hard to deliver on both growth and profitability expectations,” says Deepinder Goyal, Chief Executive Officer – Zomato.
The stock market gave a promising response to Zomato’s long-term vision and commitment. The stock rallied 11.23% on Tuesday, trading at INR 63.23.
As the market is coming out from the grip of the pandemic, there is no doubt that people will start venturing out like before, which will have a direct impact on the number of orders and food deliveries. On the flip side, the overheads and expenses are also bound to shoot up. Zomato Q4 FY22 financial result has assured investors and the stock market that the company will soon be on the path to profitability, but with mounting losses and in a cut-throat competition scenario, it’s will be an uphill battle for Goyal and his team, for sure.