Zomato Faces Significant Profit Decline in Q4

Eternal, formerly known as Zomato, reported a dramatic 78% drop in net profit to Rs 39 crore in the March quarter, down from Rs 175 crore in the same period last year. This significant decline is attributed to the company's heavy investments in its quick commerce venture, Blinkit, which led to a surge in expenses.

Revenue Growth Amidst Profit Challenges

Despite the profit downturn, Zomato showcased a robust increase in revenue from operations, which rose to Rs 5,833 crore in Q4 from Rs 3,562 crore in the previous year. This growth highlights the company's expanding market presence and operational scale, even as it navigates the financial strains of strategic investments.

Looking Ahead

As Zomato continues to invest in Blinkit and other growth areas, the company remains focused on balancing expansion with profitability. The latest financial results underscore the challenges and opportunities that lie ahead for the food delivery giant in a competitive and fast-evolving market.