Food delivery firm Zomato Ltd. posted its maiden quarterly profit with increasing subscriptions for its loyalty program driving a 72% growth in revenue.
(Bloomberg) — Food delivery firm Zomato Ltd. posted its maiden quarterly profit with increasing subscriptions for its loyalty program driving a 72% growth in revenue.
The company expects the business to remain profitable and may continue to deliver more than 40% annual growth in adjusted revenue for at least the “next couple of years,” Chief Financial Officer Akshant Goyal said in a letter to shareholders. The company was “realistically” expected to hit the milestone in the September quarter, he added.
Zomato reported a profit of 20 million rupees in the first quarter ended June, against an estimated loss of 1.7 billion rupees. Net income was driven by growth in both the number of orders as well as average order value, as demand recovered since February, according to a statement.
“This quarter’s growth is exciting but their view on growth going ahead is what will drive the stock now,” said Rahul Jain, an analyst at Dolat Capital Market Ltd.
The company expects its loss-making quick-commerce business Blinkit, which it acquired last year, to break even at the operating level within a year.
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