Zomato to achieve breakeven by Q2 FY24, says CFO Akshant Goyal

In an analyst call, Goyal said Zomato was already positive on cash flow with its adjusted EBITDA losses at Rs 150 crore and other income was Rs 170 crore in the first quarter of the ongoing fiscal.
  • Nusra Deputy Features Editor
Zomato

Gurgaon-based food aggregator and delivery platform Zomato Ltd has shared that it is targeting to achieve the breakeven level in overall business between the fourth quarter of this fiscal and the second quarter of FY24 having cut losses gradually, according to company CFO Akshant Goyal.

Zomato, which earlier this year gave an investment guidance of USD 400 million for the next couple of years on quick commerce, has now reduced it to about USD 320 million, reported PTI.

In an analyst call, Goyal said Zomato was already positive on cash flow with its adjusted EBITDA losses at Rs 150 crore and other income was Rs 170 crore in the first quarter of the ongoing fiscal.

"So, in some ways, we are not losing cash in that business anymore...we got to adjusted EBITDA breakeven in the food delivery business," he pointed by adding that the next milestone is to get the overall Zomato business to adjusted EBITDA breakeven and we think we are close now.

In terms of timeline, he said, "Internally, we are aiming to get there by quarter four of this fiscal year. That is the internal goal that we have as a team but we think that if we slip on that, it should not be later than Q2 FY24, which is September 2023 quarter for getting to breakeven on adjusted EBITDA at the Zomato level."

At a consolidated level, Zomato Ltd had reported a narrowing of net loss to Rs 186 crore in the first quarter ended June 30, 2022, from a net loss of Rs 360.7 crore in the year-ago period.

Its consolidated revenue from operations was at Rs 1,413.9 crore compared to Rs 844.4 crore in the same period last fiscal.

When asked what will drive the march towards achieving EBITDA breakeven, he said, “It will primarily be driven by food delivery EBITDA growing. We have been working on bringing our fixed cost down as well, and I think that is the reason why we have been able to absorb a lot of increases on the salary front etc., which would have otherwise made this number much higher."

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