Zomato posts ₹36 cr profit on surge in order volume

livemint.com:

₹36 crore for the three months ended 30 September from a loss of ₹251 crore in the year-ago period. Zomato reported a ₹2 crore profit for the first time in the June quarter. Revenue from operations grew 71% to touch ₹2,848 crore, driven by a order volume surge across its food ordering and quick commerce businesses.

“The growth momentum we witnessed in Q1FY24 continued in Q2FY24, driven by healthy growth across all our businesses. Gross order value across our B2C businesses (food delivery, quick commerce and going-out) grew 13% quarter-on-quarter and 47% year-on-year," Deepinder Goyal, founder and CEO of Zomato, said in the company’s shareholder’s letter and results. Gross order value (GOV) is the combined value of all food delivery orders placed on the platform.

Food delivery GOV grew 9% from the June quarter and 20% from a year ago and is recovering well from the demand slowdown we witnessed in the past two quarters of FY23. Quick commerce bounced back with a 29% growth in order volume from the preceding June quarter. On food delivery, growth was led by growth in order volumes, while the average order value remained largely flat.

“A visible uptick in demand coupled with some great execution by the team led to the robust growth in order volumes. Order volume growth is typically negatively impacted in this quarter due to lower delivery partner availability during rains. However, this year, we were able to improve on that through better all-round execution.