Zomato Q1 results: Consolidated net loss widens YoY to Rs 356 cr; adjusted sales rise 26%

The newly-listed company reported adjusted sales growth of 26 per cent year-on-year to Rs. 1,160 crore for the reported quarter. Zomato considers adjusted sales as sum of revenue from operations plus customer delivery charges.

The online food aggregator said that year-on-year growth in adjusted sales is irrelevant as the year-ago quarter was adversely affected by the national lockdown to contain the spread of the COVID-19 pandemic.

Revenue growth was largely on the back of growth in our core food delivery business which continued to grow despite the severe COVID wave starting April, Zomato said.

The Indian food delivery business, however, showed strength during the quarter as the company recorded its highest-ever gross order value, number of orders, transacting users and active delivery partners in its history.

The gross order value of the Indian food delivery business grew more than four-fold year-on-year to Rs. 4,540 crore in the reported quarter. The sequential growth in gross order value was at 37 per cent.

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“Our India food delivery business continues to remain contribution positive; although the contribution margin reduced slightly in Q1FY22 as compared to the previous quarter on account of growth investments in addition to the costlier business environment (due to lockdowns) in which this growth was achieved,” Zomato said.

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