The leading food delivery app in India, Zomato, posted profit for the first time at Rs 2 crore during the first quarter of FY24.
Company’s revenue from operations also increased by 70.9% at Rs 2,416 crore.
On the development, Zomato said that the quick commerce (Blinkit) business turned contribution positive for the first time ever in the month of June 2023.
It is expecting to deliver Adjusted EBITDA breakeven in the quick commerce business in the next four quarters.
The total income for Q1FY24, the total income stood at Rs 2,597 crore with the total expenses at Rs 2,612 crore.
For the corresponding quarter last year, the company posted a loss of Rs 186 crore.
“We have been working hard to make our business less complex, and putting the right people at the right spots within our businesses. These things do not have definite/measurable impact, and I can in hindsight say that most of our seemingly “risky” bets have changed the trajectory of the business significantly, much faster than we expected,” said Deepinder Goyal, CEO, Zomato on the results.
Zomato’s cash balance on a consolidated basis as at the end of June 30 was Rs 11,573 crore as compared to Rs 11,323 crore as at the end of March 31.
The company hopes to maintain its winning streak.
Zomato’s stock price has recovered to reach the upper band of the initial public offering of Rs 76 in the past two months.
The stock was in blues for almost a year following concerns over an uncertain path to profitability and selling by its pre-IPO investors.