Zomato subsidiary withdraws NBFC application, says no impact on operations
Zomato subsidiary withdraws NBFC application, says no impact on operations
Food delivery aggregator Zomato Ltd on Tuesday (July 2) said it's its wholly-owned subsidiary, Zomato Financial Services Ltd (ZFSL), has decided to withdraw its application for a non-banking financial company registration with the Reserve Bank of India (RBI).
The application, initially submitted on April 29, 2022, has been voluntarily withdrawn as the company no longer intends to pursue the lending and credit business.
In a statement to the stock exchanges, Zomato clarified that this decision will not have any material impact on the company's revenue or operations.
"We would like to inform the stock exchanges that the board of directors of ZFSL, a wholly owned subsidiary of Zomato Limited at its meeting held today i.e. July 2, 2024, has decided to voluntarily withdraw the application dated April 29, 2022, submitted with the Reserve Bank of India (RBI) for getting a certificate of registration for undertaking the business of a Non-Banking Financial Company (Type II NBFC-ND) as we do not wish to pursue the lending/credit business anymore," the company stated.
Q4 numbers
Zomato reported a net profit of ₹175 crore for the March quarter, compared to a net loss of ₹188 crore during the same quarter last year. The profit figure was also aided by a 37% jump in the company's other income, which came in at ₹235 crore.
It said its quick commerce business, Blinkit, turned profitable on an adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) basis in the month of March 2024. Revenue for Blinkit also more than doubled year-on-year to ₹769 crore.
Zomato continues to generate substantial other income considering it has cash worth over ₹12,000 crore on its books. Revenue for the quarter stood at ₹3,562 crore, a growth of 73% compared to the same period last year. The company also reported EBITDA of ₹86 crore, compared to a loss of ₹226 crore during the same period last year.
Shares of Zomato Ltd ended at ₹209.05, up by ₹5, or 2.45%, on the BSE.