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Zomato has profit target of Rs 10,000 crore in next 3 years: Zomato CEO Deepinder Goyal to Zee Business managing editor Anil Singhvi
Zomato on Thursday reported its first-ever quarterly net profit of Rs 2 crore. The company's revenue from operations also jumped to Rs 2,416 crore from Rs 1,414 crore in the same quarter last fiscal.
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After Zomato declared its first-quarter results on Thursday, the company's share rose to a 52-week high of Rs 102.85 on the BSE. At market close on Monday, the share traded 2.34 per cent higher at Rs 97.66. Photo: Reuters
Written By: ZeeBiz WebTeam
Updated: Tue, Aug 08, 2023
07:33 AM IST
07:33 AM IST
New Delhi, ZeeBiz WebDesk
Ever since Zomato reported its first-ever quarterly net profit of Rs 2 crore on Thursday (August 3, 2023), the company's shares have seen a steady rise. The company achieved its target of profit one quarter earlier than expected, reporting profits from a net loss of Rs 186 crore in the corresponding quarter last year.
The company's revenue from operations also jumped to Rs 2,416 crore from Rs 1,414 crore in the same quarter last fiscal.
After Zomato declared its first-quarter results on Thursday, the company's share rose to a 52-week high of Rs 102.85 on the BSE.
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At market close on Monday, the share traded 2.34 per cent higher at Rs 97.66.
Zomato's Founder and CEO, Deepinder Goyal, is understandably gung-ho after upbeat quarterly results. In a conversation with Zee Business Managing Editor, Anil Singhvi, he said that the company has set its sights on a Rs 10,000 crore profit in the next three years. Singhvi enquired on topics such as how did the company deliver profits so quickly? What is the vision ahead for business growth? Where does Zomato find itself in comparison with Swiggy?
Here's what Goyal has to say in response to Singhvi's questions.
Q1. How did you manage profits before your guidance?
A1: We didn't expect to become profitable so quickly. We had expected a better performance, but didn't think much about the future.
Q2. What changes have you seen in e-commerce?
A2. We knew that it would take some time to make profits. In technology, it takes time to become profitable.
Q3. What is the way forward?
A3: We expect to maintain continuity in earning profits.
Q4. What will you do with the cash?
A4. There is no particular plan as of now.
Q5. Any plans with respect to cash?
A5: We got a good amount of cash at the time of the IPO. The cash flowed in after the company started performing well. Cashflow in the company boosted our confidence.
Q6. Do you see a challenge from Swiggy?
A6: I have no idea about the work strategy of Swiggy.
Q7. What is your vision for the next 3-5 years?
A7: We have set a profit target of Rs 10,000 crore in the next 3 years.
Q8. Why did people in the top management leave the company?
A8: People had personal reasons for leaving the company.
Q9. When will Blinkit turn profitable?
A9: It should be profitable in the next four quarters.
Q10. How is the performance of Hyper Pro?
A10: Hyper Pro is growing fast. It is providing services to restaurants.
Q11. How often do you order from Zomato?
A11: I myself order from Zomato 3-4 times per day. To understand the competition, we also order on Swiggy. We try to be fast at work. The milestone was just achieved in terms of profitability. The Rs 2 crore profit was not our target.
Q12. What's your message to investors?
A12: We are grateful that people believe in us. People have encouraged us; it's also a big thing.
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