(MENAFN- IANS) New Delhi, Jan 20 (IANS) online food delivery giant Zomato on Monday reported a 57 per cent decline in net profit (year-on-year) at Rs 59 crore in the third quarter (Q3) of FY25 -- from Rs 176 crore in the same period last fiscal.
However, the revenue from operations rose by 64 per cent to Rs 5,404 crore in Q3. It was Rs 3,288 crore in the same period last year.
The revenue of the Gurugram-based firm was Rs 4,799 crore in the Q2 of FY25.
Zomato reported an increase of 64 per cent in the company's expenses at Rs 5,533 crore in the third quarter. The quick commerce segment reported a 117 per cent increase in revenue.
It stood at Rs 1,399 crore in Q3 as compared to Rs 644 crore in the same period last year.
“As we continue to bring forward store expansion, our networks may have to carry a greater load of under-utilised stores which will impact near-term profits in the next one or two quarters,” said Zomato CFO Akshant Goyal.
These investments will, however, also likely result in gross operational value (GOV) growth remaining meaningfully above 100 per cent, at least for FY25 and FY26, he added.
The company also informed shareholders about the progress and expansion plan, saying it is planning to launch 1,000 new Blinkit stores by December 2025.
The shares of Zomato dropped by nearly 7 per cent in trading session on Monday. However, the stock traded in green before the steep decline.
According to Deepinder Goyal, Founder and CEO, the losses in our quick commerce business this quarter are largely on account of pulling forward the growth investments in the business that we would have otherwise made in a staggered manner over the next few quarters.
“As of now, it seems like we will get to our target of 2,000 stores by December 2025, much earlier than our previous guidance of December 2026,” he noted.
Quick commerce GOV grew 120 per cent YoY (27 per cent QoQ).
“We remain confident in the quality of the business that we are building in the midst of these investments – indicated by the robust margin profile for the more mature parts of the business, as well as continued strong customer retention,” said Albinder Dhindsa, Founder and CEO, Blinkit.
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