Zomato on Monday recorded fiscal third quarter earnings with profit recording a significant drop of 57.25 per cent to Rs 59 crore, primarily due to the ongoing store expansion. The company had posted profit at Rs 138 crore recorded during the third quarter of previous financial year. Zomato said that its margins continued to face pressure from increased spending on opening more centres to fulfill orders at its Blinkit platform. The food delivery company posted revenue from operations at Rs 5405 crore, up 64.39 per cent as against Rs 3288 crore during the third quarter of FY24. The company EBITDA stood at Rs 162 crore.
Akshant Goyal, CFO of Zomato, said, “As we continue to bring forward store expansion, our networks may have to carry a greater load of under-utilized stores which will impact near-term profits in the next one or two quarters. These investments will however also likely result in GOV growth remaining meaningfully above 100%, at least for FY25 and FY26. Once we come out from this period of expansion, the business is likely to turn sharply from being loss making to becoming meaningfully profitable as a larger part of our business starts comprising mature stores compared to newly added ones.”
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