Zomato Q1 Results: Loss Widens On ESOPs To Founder-CEO Goyal

A Zomato food delivery courier rides a motorcycle carrying a customer order in Mumbai (Photographer: Dhiraj Singh/Bloomberg)

Zomato Q1 Results: Loss Widens On ESOPs To Founder-CEO Goyal

Zomato Ltd.'s loss widened on account of employee stock options issued to founder Deepinder Goyal as the food ordering platform reported its first earnings after a bumper debut on the stock market.

Net loss for the restaurant discovery and food delivery company stood at Rs 356 crore in the quarter ended June, according to its filing. That widened from a loss of Rs 153.5 crore in the preceding three months.

Zomato granted 36.8 crore ESOPs to Goyal, managing director and chief executive officer, on April 12. The options have an aggregate fair value of Rs 1,363.5 crore, and the company recorded Rs 170 crore in April-June.

Q1 Key Highlights (QoQ)

  • Revenue rose 22% to Rs 844.4 crore.

  • Operating loss at Rs 376.5 crore compared with Rs 153.5-crore Ebitda loss in the preceding quarter.

  • Other expenses rose 30% to Rs 756 crore.

India food delivery business reported its highest gross order volume, which rose 37% sequentially $605 million (about Rs 4,540 crore) in the first quarter.

Zomato said its adjusted revenue, including sales from operations and customer delivery charges, rose 26% over the preceding quarter to Rs 1,160 crore.

"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 in its note to shareholders. The pandemic, however, significantly impacted the dining-out business in the first quarter of FY22, reversing most of the gains of the fourth quarter of FY21.

India dining-out revenue shrunk over the previous quarter because of restrictions on eating outlets.

Zomato's adjusted operating loss stood at Rs 170 crore, compared with Rs 120 crore Ebitda loss in the prior quarter.

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