Name Roll No.

Aditya Pardeshi G25003

Anwesh Abhijit Padhi G25008

Bhavika Arora G25013

Himank Wadhwa G25019

Imtiyaz Shaikh G25020

Manisha Bhatt G25028

Rupali Jain G25043

Shruti Wani G25047

M V S S D Rajeswara Rao G25057

Yash Yogesh Gaidhani G25059

Zomato Ltd. is a leading Indian food-tech company founded in 2008 and headquartered in Gurugram. The
company provides comprehensive services across food delivery, quick commerce, dining-out experiences,
and B2B restaurant supplies through its prominent brands—Zomato, Blinkit, and Hyperpure. It is listed on
both NSE and BSE and stands as one of India’s first home-grown technology IPOs. Committed to financial
transparency, Zomato adheres to Ind AS 115 for revenue recognition and Ind AS 108 for segment
reporting. In FY 2023–24, the company achieved a revenue of ₹12,114 crore and recorded a net profit of
₹351 crore, marking its transition to profitability for the first time. With a robust cash position of ₹12,241
crore in reserves, Zomato continues to expand, currently operating across more than 800 Indian cities and
serving millions of customers monthly. Zomato aims to create an ecosystem that aligns seamlessly with
India's evolving lifestyles by prioritizing convenience, accessibility, and innovation.
The management reports robust business growth with 71% YoY increase in revenue and 56% growth in Adjusted Revenue. Revenue growth
was driven by growth across all four of its key businesses (food delivery, quick commerce, Going-out and B2B supplies)

Turned profitable for the first time: PAT INR 351 crore

Completed the acquisition of Blinkit in FY23 (on August 10, 2022) and hence FY24 was the first full year of operations for Blinkit as a wholly-
owned subsidiary of the Company.
Blinkit store count grew to 526, up from 377. Zomato’s management aims to get to 1,000 stores by the end of FY25

Food delivery revenue from operations grew 40% YoY to INR 6,361 crore in FY24 from INR 4,533 crore in FY23, driven by a 23% YoY increase
in GOV and expansion in commission take rate
Starting Q2FY24, the management introduced a platform fee, which contributed towards take-rate expansion

Hyperpure revenue more than doubled to INR 3,172 crore (111% YoY growth) in FY24, driven by growth in both the core restaurant supplies
business and the newer quick commerce opportunity that the company started tapping into in FY23
On the restaurant side, growth was driven by increase in unique restaurants served by Hyperpure and growth in revenue per restaurant

Going-out business grew 51% YoY to INR 258 crore from INR 171 crore in FY23, largely driven by growth in the India dining-out business.
The company’s events and ticketing business is still nascent with a large untapped opportunity ahead

Other income increased by INR 165 crore to INR 847 crore in FY24 primarily due to increase in treasury income
This growth was driven by increase in investable cash balance and increase in overall yields as the company indexed a higher share of its
investments towards debentures and bonds as compared to bank deposits

Zomato has expanded to restaurant supplies (through Hyperpure), food carnivals (Zomaland), and quick commerce business (Blinkit),
reducing dependence on a single revenue stream. It is continuously launching new products to align with evolving customer preferences
For Quick Commerce, we are expanding to new cities and introducing new products to meet customer demands
MD&A - Financial Metrics
Emphasized in the Report

Financial metrics:
• Gross Order Value (GOV)
• Contribution
• Adjusted Revenue
• Adjusted EBITDA

Operating metrics: Note: To supplement our financial information presented in accordance with IND AS, we consider certain
• Orders financial measures that are not prepared in accordance with IND AS, including Adjusted Revenue and
• Average order value Adjusted EBITDA. We use these financial measures in conjunction with IND AS measures as part of our
overall assessment of our performance to evaluate the effectiveness of our business strategies and to
• Average monthly transacting customers communicate with our board of directors concerning our business and financial performance.
• Average monthly active food delivery
restaurant partners 1) Adjusted Revenue = Consolidated revenue from operations as per financials (+) actual customer delivery
• Average monthly active delivery partners charges in the food delivery business (net of any discounts, including free delivery discounts on account of
Zomato Gold program) (+) platform fee paid in the food
delivery business (that is not already included in reported revenue from operations)
2) Adjusted EBITDA = Consolidated EBITDA (+) share-based payment expense (-) rental paid for the period
pertaining to ‘Ind AS 116 leases’
Risk management has been an integral part of the
Strategic risks identified by the management, and how are they being managed?
Company’s strategy and a key pillar in achieving its goals

Brand Reputation: Zomato may face loss of brand perception and reputation due to factors such as negative
publicity or feedback on multiple platforms
• Enforces strict branding guidelines, runs positive PR campaigns, and actively monitors public sentiment
Customer Experience: Zomato as a group may face a loss of trust and brand reputation due to poor customer
experiences, stemming from service unavailability, subpar service quality, and inconsistent pricing
• Regular training, customer feedback systems, and dedicated support teams for issue resolution
A Risk Management Audit Committee
Technology: With evolving technology, Zomato can be exposed to cybersecurity risks, including ransomware
Committee
attacks, phishing scams, denial-of-service (DoS) attacks, and other cyber threats
• Practices global best practices, cybersecurity tools, and regular system assessments
People Management: Ability to attract and retain top talent, along with succession challenges, may limit our
ability to achieve business goals
• Supports its workforce through mentorship, inclusive policies, leave benefits, and succession planning
Business Strategy: Faces the risk of revenue stagnation and hindered growth in the absence of a well-defined
strategy for developing new products and for the expansion, closure, and scalability of stores and warehouses
• Diversifies into new domains like Hyperpure, Blinkit, and food events, and launches new offerings
The Governance, Risk & A risk register is maintained
Competition: Zomato may face negative impact on business, revenue and growth due to new entrants in the
market or increased competition from existing competitors providing similar services
Compliance team and regularly updated
• Innovation, R&D investments, diversified services, and marketing and customer retention strategies

Risk that challenged Zomato in FY24 - Ticketing business incurred losses largely driven by growth investments in this business given its nascent stage.
Corporate Social Responsibility (CSR): The CSR policy of the Company has been reviewed and re-
approved by the Board in its meeting held on May 13, 2024. There has been no material change in the
CSR policy during the financial year ended on March 31, 2024.

Environmental, Social, and Governance (ESG) & Sustainability Initiatives

The company tries to consciously choose environment-friendly technologies, including energy

efficient air conditioners, LED lighting fixtures, sensor-based taps, energy-efficient TVs and laptops

Zomato has taken several steps to put procedures in place to facilitate sustainable sourcing

It is committed to implementing effective waste management strategies to minimise the

environmental impact

The Company is committed towards conservation of energy and climate, which is reaffirmed in its
actions and environmental policy which is also available on the website of the Company

Zomato continuously strives to reduce the environmental impact of its operations and lower its
carbon footprint

Sustainalytics, a global leader in ESG data and ratings reclassified Zomato Limited as LOW RISK rating in
February ‘24 from MEDIUM RISK in FY23 and our current score stands at 16.9
ZOMATO now has the best ESG rating amongst major global food delivery companies across the world
• Talent Development and HR Initiatives
• Training given to employees/workers on health & safety measures, and skill
upgradation
• In the reporting year, Zomato introduced ‘Emergency First Responder
Training’ for our Delivery Partners that included First Aid training and
Cardiopulmonary Resuscitation (CPR). This initiative was designed on the
basis of feedback received from Delivery partners and NGOs
• In the reporting year, 4,440 employees and 316 workers have been
provided training on human rights issues and policy(ies) of the entity
• It has implemented widespread health and safety awareness initiatives like
safety communications, safety training programs on fire safety, first-aid,
Personal Protective Equipment, chemical handling, etc.

• Industrial Relations:
Zomato provides restaurant partners with industry-specific marketing
tools that enable them to engage and acquire customers
 Management’s outlook on the market conditions:

Regulatory changes or economic factors that could affect the business

MD&A – Other
Information
Disclosures about compliance with laws, Management report mentions adherence
regulations, and applicable codes to corporate governance practices
 The governance reports mentions that there are Committee Leaders:
5 Independent Directors Audit Committee – Chairperson: Sutapa Banerjee
1 Executive Director (CEO) (Independent), NRC – Chairperson: Namita Gupta
(Independent), CSR Committee – Chairperson: Deepinder
1 Nominee Director Goyal, with 3 independent directors, Risk Committee –
Exceeding SEBI requirement of 50% independent by Chairperson: Deepinder Goyal, with 3 independent
having 71.4% directors (Details in the next slide)

Zomato engaged Nasdaq Governance Solutions, a globally

Age, Tenure & Stability: recognized expert in board evaluations, to assess the
CEO Tenure: 5 years performance of the Chairman, non-independent directors,
the Board, and its committees for FY 2023–24. The
Other Directors' Tenure & Age: Not disclosed
evaluation followed a structured process involving
Governance Continuity: questionnaires and one-on-one interviews with non-
No changes in board composition during FY 2023–24. Indicates executive directors. This approach reflects Zomato’s
stability and continuity in governance commitment to global best practices, strong ESG focus,
No changes in board composition in FY 2023–24 and adoption of robust, independent governance
evaluation frameworks.

Zomato has implemented robust governance policies

Key Board Committee: including a Board Diversity Policy, Remuneration Policy,
Committee Names Audit Committee, Nomination and Remuneration and Conflict of Interest Policy, all aligned with SEBI and the
Committee, Stakeholders’ Relationship Committee, Risk Companies Act. The NRC oversees fair compensation,
Management Committee, Corporate Social Responsibility ethical leadership appointments, and board evaluations.
Committee and Investment Committee. These policies reflect Zomato’s commitment to merit,
transparency, and high ethical standards.
 Committees meet during the financial year

Committee Member Name Apr 25th , 2023 May 19th , 2023 Jul 31st , 2023 Aug 3rd , 2023 Nov 3rd , 2023 Jan 31st , 2024 May 12th , 2023 Oct 31st, 2023 Feb 7th , 2024 Feb 8th , 2024 Jan 31st, 2023 Feb 7th ,2023

Audit Sutapa Banerjee - Present - Present Present - - Present

Audit/NRC Kaushik Dutta Present Present Present Present Present Present - Present

Audit/NRC/SRC Namita Gupta Present Absent Present Present Present Present Present Present

Audit/NRC/SRC Sanjeev Bikhchandani Present Present Present Present Absent Present Present Present

CSR Deepinder Goyal - - - - - - Present -

RMC Deepinder Goyal Present Absent

RMC Kaushik Dutta Present Present

RMC Gunjan Tilak Raj Soni Present Present

RMC Namita Gupta Present Present

CSR Deepinder Goyal Present Present

CSR Aparna Popat Ved Present Present

CSR Gunjan Tilak Raj Soni Present Present

CSR Namita Gupta Present Present

Independent Directors

Remuneration/salary

Evaluation Framework
 Zomato’s Risk Management Committee
(RMC)
Zomato did not enter any materially significant related
party transactions during FY24 that could cause a conflict Zomato has adopted a Code of Conduct for its Board and
of interest. All related transactions were disclosed semi- senior management, and they have affirmed compliance
annually as per SEBI Regulation 23 and included in the with it.
financial statement notes.

The Company has formulated a Vigil Mechanism and

Whistle-Blower Policy (“Policy”) in accordance with
provisions of the Act and Regulation 22 of SEBI Listing
Zomato evaluated the independence and performance of
Regulations. This Policy aims to provide a platform and
its independent directors. The evaluation was done as per
mechanism for employees, directors and other
Code of Conduct criteria set in the NRC policy, fulfilling SEBI's Regulation
stakeholders to report unethical behavior, fraud or
17(10) and Schedule IV on independence evaluation.
violations of the company’s code of conduct, ethics and
principles without fear of retaliation. It also ensures
direct access to the Chairperson of the Audit Committee.

Whistle Blower Policy

Zomato’s Risk Management Committee (RMC) has 3
members (2 are independent). Met twice in FY24; covers
operational & financial risks. Fully compliant with SEBI
Reg. 21 which mandates listed top 1000 companies to
form a Risk Management Committee to oversee and
mitigate key business risks.
Zomato discloses its
ESG and sustainability
governance initiatives
in detail. The company
targets Net Zero
emissions by 2033 and
ensures 100% plastic-
neutral deliveries. It
promotes social
initiatives like meal
programs, diversity, and
delivery partner welfare.
Governance efforts
include data privacy,
corporate governance,
and BRSR (Business
Responsibility and
Sustainability Report)
reporting
Statutory Auditors and their tenure
M/s. Deloitte Haskins & Sells, Chartered Accountants, were appointed as Statutory Auditors of the Company for a term of five
consecutive years starting from the conclusion of the 10th AGM (FY 2021-22) till the conclusion of the 15th AGM (FY 2025-26)

Audit Opinion and reasonable basis

M/s. Deloitte Haskins & Sells have given unmodified opinion and have not given any qualification or reservation or adverse
remark or disclaimer in their audit report on the audited financial statements (standalone and consolidated) of the Company
for the financial year ended on March 31, 2024.
The auditors have mentioned that: “We believe that the audit evidence obtained by us and the audit evidence obtained by the
other auditor in terms of their reports referred to in the Other Matters section below, is sufficient and appropriate to provide a
basis for our audit opinion on the standalone financial statements.”

Compliance to applicable standards in the preparation of financial statements

The auditor in his opinion has mentioned that the company has prepared its financial statements in compliance with
Companies Act 2013, Indian Accounting Standards prescribed under section 133 of the Act, read with the companies (Indian
Accounting standards) Rules 2015, as amended (“Ind AS”) and other accounting principles generally accepted in India, of the
state of affairs of the Company as at March 31, 2024

Independence of the Statutory Auditors

The auditors have declared that are independent of the Company in accordance with the Code of Ethics issued by the
Institute of Chartered Accountants of India (“ICAI”)
Emphasis of Matter paragraph
The auditors have mentioned about the show cause notices (SCNs) received by the Company from GST authorities in respect of
GST on delivery charges in the emphasis of matter paragraph and have not modified their opinion in that respect.
Other Matters paragraph
The auditor has mentioned in the Other Matters Paragraph that they did not audit the financial statements of the trust
included in the standalone financial statements of the Company, whose financial statements reflect total assets of INR 25
crores as at March 31, 2024. They relied on the other auditor’s opinion on these financial statements.
Key Matters paragraph
The matters mentioned here are those that were of most significance during the audit, and the statutory auditor stated the
following matters as Key Audit Matters in this audit:
1. Impairment of investment in subsidiary
2. Fair valuation of investment in other entities
3. Revenue recognition
Responsibilities of Management
The auditor in its report states the responsibilities of the Management and Those Charged with Governance which are also
stated in the section 134(5) of the Act as below:

Preparation of financial statements that give a true and fair view of the financial position and performance in
accordance with the applicable laws and guidelines.

Maintenance of adequate accounting records

Safeguarding of assets and prevention and detection of frauds

Selection and application of appropriate accounting policies and judgements about estimates

Implementation and maintenance of adequate internal financial controls, that were operating effectively for
ensuring the accuracy and completeness of the accounting records

Auditor’s opinion on the company’s internal financial controls

The auditor gave an unmodified opinion on the company’s internal financial controls and no material weaknesses were
noted in the internal controls.
Company Auditor’s Report Order, 2020 u/s 143(11)
Under this order the auditor is required to report on certain matters as mentioned below but not limited to:
1. Related party transactions 4. Internal audit adequacy

2. Resignation of statutory auditors 5. Fraud and other legal matters

3. Going concern assumption

Differences in the audit report on Consolidated Financial Statements

There are no differences from the standalone audit except that the auditors have given opinions based on the consolidated
financial statements and the Key Audit Matters includes Impairment assessment of Goodwill
 ASSETS OVERVIEW
Total Assets Growth (+10.9%)
- The overall increase in total assets is primarily driven by a substantial rise in non-
current investments.
Non-Current Assets Surge (+57.6%)
- Investments: More than doubled, indicating strategic acquisitions or long-term
investments.
- Other Non-Current Assets: Significant decrease, suggesting reclassification or
realization of certain assets.
Current Assets Decline (-59.4%)
- Current Investments: Sharp reduction, possibly due to reallocation of funds into long-
term investments.
- Other Current Assets: Decrease aligns with the overall reduction in current assets.

INFERENCE: Zomato's asset structure in FY 2023–24 reflects a strategic shift towards long-
term investments, as evidenced by the significant increase in non-current investments.
This move suggests a focus on sustainable growth and expansion. The reduction in current
assets, particularly current investments, indicates a reallocation of resources to support
this long-term vision.
 ASSETS OVERVIEW
LONG TERM INVESTMENTS:
₹18,445 Cr as of March 31, 2024 has been invested, primarily comprising equity investments in
subsidiaries.
Equity Instruments in Subsidiaries – Measured at Cost [Pg 311, Note5]
- Zomato Hyperpure Pvt. Ltd. – ₹1,494 Cr
- Blink Commerce Pvt. Ltd. – ₹16,957 Cr
- Others (6+ smaller subsidiaries) – ₹2–5 Cr range each
Thus, Total investment in subsidiaries: ₹18,444 Cr
Other Investments
- Mutual Funds / Other equity investments: ₹1 Cr

CAPTIAL WORK IN PROGRESS AND INTANGIBLE ASSETS UNDER DEVELOPMENT

No capital work-in-progress (CWIP) or intangible assets under development were reported in the
standalone books, reflecting that core infrastructure and R&D investments are likely centralized in
subsidiaries.

TRADE RECEIVABLES
The trade receivables increased from 62crores to 69crore from 2023 to 2024, but there's no aging
analysis provided [Pg 360, Note 42]
ASSETS UNDER COLLATERAL OR UNDER LIEN
Zomato's standalone financial statements for FY2023-24 (page 280) show no disclosure of current assets being pledged as
collateral or under lien. The notes to accounts (specifically Note 11: "Other financial assets") list components like deposits,
advances, and receivables but do not indicate any encumbrances
 LIABILITIES OVERVIEW
Total Liabilities Increase (+38.4%)
- The overall increase in total liabilities is primarily driven by a significant rise in current liabilities.
Non-Current Liabilities Decrease (-14.8%)
- Long-Term Borrowings: Remain at zero, indicating no long-term debt obligations.
- Other Non-Current Liabilities & Provisions: Decrease suggests settlement or reclassification of long-term
obligations.
Current Liabilities Surge (+48.8%)
- Trade Payables: Increase reflects higher operational expenses or delayed payments to suppliers.
- Other Current Liabilities: Substantial rise could be due to accrued expenses or other short-term obligations.
- Short-Term Provisions: Slight decrease indicates marginal reduction in anticipated short-term liabilities.

Inference:
Zomato's liability structure in FY 2023–24 shows a strategic shift towards managing short-term obligations, as
evidenced by the significant increase in current liabilities. The absence of long-term borrowings underscores
the company's approach to avoid long-term debt, possibly relying on internal accruals or equity financing. The
rise in trade payables and other current liabilities suggests increased operational activities and a focus on short-
term financial strategies.
 LIABILITIES OVERVIEW
Non-Current Liabilities Components (page 280):
• Lease liabilities: ₹107 crore (Note 32)
• Provisions: ₹49 crore (Note 19)
• No long-term borrowings disclosed.

Leases & ROU Assets (Ind AS 116)

Zomato has adopted Ind AS 116 for lease accounting and provides detailed disclosures of Right-of-Use (ROU)
assets and lease liabilities.
Right-of-use assets - 123Cr(2024) 134Cr(2023) [note32]
Lease liabilities - note32 149Cr(2024) to 157Cr(2023) [note32]

Employee Benefits [Note 19]

• Employee benefits provisions are disclosed under “Provisions” in the balance sheet.
• Non-current: ₹49 crore
• Current: ₹20 crore
• These represent the liability for employee benefits (such as gratuity, compensated absences, etc.) at the
reporting date

Contract Liabilities, Advances & Dividends [Note 18 (Pg 325)]

• Unearned Revenue: ₹21 Cr
• Advances from Customers: ₹6 Cr
• Unpaid Dividends: None
Customer obligations are modest; no shareholder payout obligations pending.

Contingent Liabilities [Note 39 – Page 357]

• GST Show Cause Notice - Amount: ₹420 Cr - Pertains to tax on delivery charges. Issued by Directorate
General of GST Intelligence (DGGI). Zomato has challenged this claim and believes it has a strong case.
• Legal and Regulatory Matters - Amount: ₹10 Cr - Represents other pending legal cases not related to tax.
These are considered possible (but not probable) obligations.
 LIABILITIES OVERVIEW
Total Shareholders’ Equity
Total Equity: ₹22,775 crore, components are as followed:
- Share capital: ₹868 crore [Note 15a]
- Other equity: ₹21,907 crore (Note 15b), which includes reserves and surplus (retained earnings
and other reserves)
- No separate disclosure of Other Comprehensive Income (OCI) as a distinct line item
 How much was spent on employee benefits, and how does it compare to
What is the total revenue from operations for the financial year?
the previous year?

1659 INR CR was spent on employee benefits in FY24, and it is 13%

Total Revenue from operations for FY 24 is 12,114 INR CR
higher than the FY23

How much of the total income is from other income (e.g., interest, What is the depreciation and amortization expense, and which assets
dividend, fair value gains)? does it relate to?

847 INR CR of total income is from the other income which is 6.5% 526 INR CR is the depreciation and amortization expense which
of the total income includes (i) depreciation on fixed assets, (ii) depreciation as
recorded under Ind AS 116 and (iii) amortization of intangible
assets

Has the revenue increased or decreased year-over-year, and what are the What is the total finance cost, and what is its trend compared to prior
key reasons mentioned? years?

Revenue has increased by 71%, Driven by higher Gross Order Total finance cost is 72 INR CR, 46.9% higher than FY 23, majorly
Value, platform fees, and ad income growth due to increase in interest on lease liabilities because of BlinkIt
store network expansion from 377 stores in FY 23 to 526 stores in
FY 24

What are the company’s main revenue streams (e.g., product sales,
What is the cost of raw materials consumed as a percentage of revenue?
services, export income)?

23.8% ( COGS / Revenue from Operations) is the cost of raw Main Revenue Stream is through services – Delivery charges,
materials as a percentage of revenue commission as platform fee and Ad revenue

Total Income increased by 71% vs last year majorly driven by increase in Gross order Value, Commission take rate due to platform fee addition and growth in ad income.
 Gross Profit = Total Income – Cost of Goods Sold
EBIDTA for the year = Earnings before Interest, Depreciation, Gross Profit Margin = (Gross Profit/Total Income)*100
Taxes and Amortization
Gross Profit 2024 = 12961- Gross Profit 2023 = 7761-
2882 =10079 Cr 1395 =6366 Cr
EBIDTA = Total Income - (COGS +Employee Benefits +
Other expenses)
Gross Profit Margin 2024 = Gross Profit Margin 2023 =
EBIDTA = 12961 – (2882+1659+7531) = 889 Cr 10079/12961*100 = 77.8% 6366/7761*100 = 82.1%

Absolute Gross Profit increased YoY by 3,713 Cr

However Gross Profit Margin in percentage has decline YoY by
EBIT for the year = Earnings before Interest and Taxes 4.3%, indicating increase in COGS as a percentage of Total
Income
Operating Profit = Gross Profit – ( Depreciation & Amortization +
Employee Benefits + Other Expenses)
EBIT = EBIDTA – Depreciation and Amortization Operating Profit Margin = (Operating Profit/Total Income)*100
expenses
Operating Profit 2024 = Operating Profit 2023 = 6366
10079- (526+1659+7531) – (437+5429+1485)
EBIT = 889 – 526 = 363 Cr
=363 Cr = (965) Cr Loss

Operating Profit Margin 2023

Operating Profit Margin 2024
= (965)/7761*100 = Negative
= 363/12961*100 = 2.8%
Margin
Net Profit for the year = Profit/Loss after Interests and Taxes Operating Profit has considerably increased compared to
operating losses incurred last year by 1,328 Cr
Company has become profitable overturning negative operating
margins of 2023 to positive in 2024
Net Profit = Operating Profit – Finance Costs - Tax Expenses
Net Profit Margin = (Net Profit/Total Income)*100
Net Profit = EBIT – (Finance Costs + Tax Expense)
Or Net Profit = Profit/Loss before tax – Tax Expense Net Profit 2024 = 363-72+60 Operating Profit 2023 = -965 -
=351 Cr 49 +44 = (970) Cr Loss
Net Profit = 363 – (72-60) = 351 Cr Net Profit 2024 Net Profit Margin 2023 =
=351/12961*100 = 2.71% (970)/12961*100 = Negative
Net Profit has considerably increased compared to Net losses
incurred last year by 1,321 Cr
Company has become profitable overturning negative net profit
margins of 2023 to positive in 2024
 Is there any significant income classified as “exceptional” or “extraordinary”?

The Exceptional Items line in the P&L is nil for FY24, indicating no one-time gains or losses (for
example, the note on exceptional items shows “Gain on sale/disposal of investment” as - in FY24,
with a negligible (0) in the prior year)

Has the company incurred any impairment losses on assets during the year?

Zomato did not incur any impairment losses on assets during FY24. But as stated in the Notes to
the Standalone Financial Statements, Zomato has made a provision of 39 INR CR for impairment
in value of investment in subsidiaries/joint ventures.

What is the earnings per share (EPS) – basic and diluted – and its movement over the year?

Basic EPS – 0.41 and Diluted EPS – 0.40;

Compared to FY23 basic EPS increased by 1.61 and diluted EPS increased by 1.60. Reason for
increase is improved profitability.

Are there any significant tax expenses or deferred tax adjustments affecting net profit?

There was a deferred tax adjustment of (61) INR CR which increased the net Profit of FY24 from
291 INR CR to 351 INR CR.
What are the major components of operating expenses (e.g., raw materials, employee benefits, power & Are there any one-time expenses or provisions (e.g., legal settlements, restructuring
fuel)? costs)?
Not disclosed in the annual report
COGS, Employee benefits, Other Expenses - Delivery & related charges, Advertisement and sales
promotion, IT support services, server and communication cost, Outsourced support cost,
payment gateway charges

Has the company incurred any foreign exchange losses or gains, and how are they
accounted for?
No, as operations are only in India and there is no import/export

Are discontinued operations or gains/losses from disposal of assets reflected in the income
statement?
The FY24 consolidated Statement of Profit and Loss does not report any income or loss
from discontinued operations. All reported profit for the year arises from continuing
operations (there is no separate line item for discontinued segments)

Has the auditor commented on any material misstatement or estimation uncertainty in

revenue or expenses?
What is included under “Other Expenses,” and which items contribute the most? The independent auditor’s report for FY24 is an unmodified (clean) opinion, and it does
not cite any actual material misstatements in Zomato’s reported revenue or expenses. The
auditors did not flag any material estimation uncertainty affecting revenue or expense
Other Expenses - Delivery & related charges, Advertisement and sales promotion, IT support figures in the financial statements
services, server and communication cost, Outsourced support cost, payment gateway charges.
Maximum Contributor - Delivery & Related Charges
 Net cash generated from operating activities
• INR 1,379 Cr in FY24 (↑516% YoY)
➔ Operating cash flow has grown sharply, signalling improved business efficiency and profitability

Operating cash flow vs. net profit

• Standalone net profit was ₹1,371 crore, so operating cash flow (₹1,379 cr) is almost the same, slightly
higher by ~₹8 cr. This reflects that most profits were converted to cash.

Non-cash adjustments in operating cash flow

• Significant non-cash adjustments, particularly high share-based expenses and interest income.
➔ Suggests that a sizable portion of reported profit is accounting-driven, not cash-generating,
highlighting the importance of strong working capital management for cash flow health.

Cash used for changes in working capital (inventory, receivables, payables)

• Total cash inflow for working capital = 257+78+115 = 450 Crores
• Total cash outflow for working capital = - (13+17+73+13) = (116) Crores
• Overall cash inflow for working capital = 334 Crores
➔ Positive working capital movement added to cash flows, showing better receivables or inventory
management

Non-recurring items disclosure:

• The cash flow statement shows only routine items (e.g. write-backs of liabilities, gains on disposals). No
one-off “extraordinary” cash flows are separately disclosed.
➔No “extraordinary” boosts to cash flow, suggesting reported figures reflect regular operations

Zomato converted almost all of its profits to cash, driven by strong operational efficiency and favorable working capital movements. No red flags or one-offs.
 Cash spent on capital expenditures (PPE/intangible assets)
• Cash spent on PPE (including CWIP and advances) was ₹38 cr (FY24) vs ₹58 cr (FY23)
• No separate purchase of intangibles is explicitly listed, implying minimal or included in these figures.

Acquisitions/investments during the year (and cash impact)

• Investments in subsidiaries: ₹1,537 Cr outflow
• Debt instruments (debentures/bonds): ₹5,772 Cr outflow
• Government securities: ₹2,420 Cr outflow
• Mutual funds: ₹20,995 Cr outflow
➔ Major cash outflows for strategic & financial investments

Cash received from sale/disposal of fixed assets or investments

• Relatively small receipts were recorded.
• The sale of fixed assets (PPE) brought in ₹1 cr, and selling a subsidiary stake generated ₹6 cr.
• The largest investment inflows were maturities / redemptions: ₹5,185 cr from matured bank deposits,
₹935 cr from government securities, and ₹23,145 cr from mutual fund redemptions
➔ Net investing cash flows remain negative despite these receipts.

Disclosures of Proceeds/payments for loans given or received

• No new loans made (zero outflow)
• ₹958 Cr received from loan recoveries
➔ No significant new lending; modest collections on existing loans

Reasons for +/- Cash Flow from Investing Activities

• Net cash used in investing was negative for FY24
• This outflow is due to large investment purchases (bank deposits, bonds, mutual funds, subsidiary
acquisitions) exceeding receipts
• Inflows from maturities/redemptions partially offset these, but the net result is a ₹1,301 cr cash outflow

Zomato’s negative investing cash flows reflect a deliberate strategy to deploy surplus cash into growth and yield-generating avenues, rather than conserving it.
 Cash inflows from issuing equity or debt instruments
• Raised ₹23 Cr via new equity (₹4 Cr in FY23)
• ESOP exercise cash receipts: ₹9 Cr (debt issuance = 0)
• No new debt issuances (long-term borrowings = 0)
➔ Minimal external financing reflects a self-sustained capital strategy

Cash outflows for repayment of borrowings or lease liabilities

• Lease principal repayments: ₹36 Cr
• Lease interest: ₹16 Cr
• No other borrowings repaid (implying zero principal repayment on bank debt)
• Total cash outflow for leases: ₹52 Cr
➔ No major loan repayments, highlighting a debt-light capital structure

Cash used for payment of dividends and dividend distribution tax

• No cash used for dividends or DDT in FY24 (consistent with no dividend policy)
➔ Reinvestment over distribution remains the priority, aligned with a high-growth business strategy.

Share buyback during the year and cash impact

• There is no line item for share repurchases, so no buyback was undertaken
➔ No capital returned to shareholders, signalling that cash is being retained for operations or growth
investments.

Financing activities related to changes in non-controlling interests

• No financing flows related to NCI changes are reported in the cash flow; none are disclosed.

Minimal financing activity shows Zomato is funding its operations and investments largely through internal cash flows
 Net increase/decrease in cash & cash equivalents
• Operating: +₹1,379 Cr
• Investing: (₹1,301 Cr)
• Financing: (₹20 Cr)
• Net change: +₹58 Cr
➔ Despite heavy investing outflows, strong operations and redemptions helped increase cash reserves.

Opening and closing cash & cash equivalents

• Opening: ₹123 Cr (April 1, 2023)
• Closing: ₹181 Cr (March 31, 2024)
➔ Zomato ended the year with a stronger cash buffer, supporting its financial flexibility.

Disclosure of restrictions on cash balances or cash equivalents

• Note 9: ₹3 Cr held as bank margin money in FY23 (none in FY24)
• Note 11: Margin-money deposits of ₹1 Cr (non-current) and ₹3 Cr (current) in FY24; restricted as
collateral for facilities
➔ Almost all cash is freely usable with very low restrictions.

Foreign exchange effects on cash & cash equivalents

• Negligible: Net FX difference on cash was ₹0 Cr (FY24) vs. +₹1 Cr (FY23)
➔ Currency movements had no material impact on closing cash balance.
Independent Auditor’s Report
Auditor/management comments on liquidity or cash flow in annual report
• Auditors: Unqualified report; did not single out liquidity or cash.
• Management: “The Company does not face a liquidity risk… current assets are sufficient to meet
obligations related to lease liabilities…”
➔ In short: Ample cash reserves & no liquidity concerns flagged in AR.

Despite large investments, Zomato ended FY24 with higher cash reserves and no liquidity concerns, highlighting a strong financial position.
Investment Properties: Revaluation adjustments & assets under construction:

No specific mention of
“investment properties”
appears in the Balance
Sheet
1. The report confirms the cost model is used, with no revaluation adjustments noted. Disclosure of
revaluation is not applicable, as Zomato does not adopt the revaluation model under Ind AS 16.
2. No explicit separate line item for assets under construction is noted in the balance sheet or related
notes.
Impairment losses on tangible/intangible assets: Prepaid expenses:

Prepaid expenses are disclosed under “Other Assets” in

No significant impairment losses on tangible or the balance sheet.
intangible assets are explicitly noted. The nature of Expenses hasn’t been broken down in
detail.
Financial investments: Off-balance sheet assets:

1. Investments in mutual funds are

measured at fair value through
profit or loss (FVTPL).
2. Investments in equity
instruments are measured at
fair value through other
comprehensive income (FVOCI),
if designated as such on initial
recognition.
3. Debt instruments are measured
at amortised cost if both the
following conditions are met:
▪ the asset is held within a
business model whose objective 1. Deferred tax assets are recognised for unused tax
is to hold assets for collecting losses, tax credits and deductible temporary
contractual cash flows, and
differences, to the extent that it is probable that future
▪ contractual terms of the asset
give rise on specified dates to taxable profits will be available against which they can
cash flows that are solely be utilised.
payments of principal and 2. Contingent assets are not recognised in the financial
interest (SPPI) on the principal statements but disclosed when an inflow of economic
amount outstanding. benefits is probable.
 Depreciation methods and useful life of assets:
Recognition and amortization of
PPE capitalization policy: intangible assets:

1. Property, plant and equipment are stated at cost

(calculated as net of accumulated depreciation
and accumulated impairment losses).
2. Includes the cost of replacing part of the plant
and equipment and borrowing costs for long-
term construction projects

1. Intangible assets are stated as cost – (accumulated

amortisation + impairment)
2. Intangible assets with finite lives are amortised 1. Depreciation on property, plant and equipment
over the useful economic life and assessed for is calculated on a straight-line basis using the
impairment.
3. The amortisation period and the amortisation rates arrived at, based on the useful lives
method for an intangible asset with a finite useful estimated by the management
life are reviewed. 2. The management has estimated, supported by
4. Goodwill is not amortised, but it is tested for independent assessment by professionals
impairment annually.
Calculating ROU asset values: Calculating ROU asset values:

1. Fair value is the price that would

be received to sell an asset or paid
to transfer a liability in an orderly
transaction between market
participants at the measurement
date.
2. The fair value of mutual funds is
determined using the quoted net
asset value (NAV) as at the
reporting date.
1. The lease term is determined as the non-cancellable
period of a lease, together with periods covered by an 3. The fair value of unquoted
option to extend the lease if the Group is reasonably instruments, if any, is estimated
certain to exercise that option, and periods covered by using appropriate valuation
an option to terminate the lease if the Group is techniques, considering discount
reasonably certain not to exercise that option. rates, expected cash flows and risk
2. The Company uses its incremental borrowing rate as adjustments.
the discount rate to measure the lease liability, unless
the interest rate implicit in the lease is readily
determinable. (Assumption)
Investments in Subsidiaries, Associates, or Joint ventures:

1. Investments in subsidiaries,
associates and joint
ventures are accounted for
at cost in standalone
financial statements.
2. In consolidated financial
statements, the Group
accounts for its investment
in associates and joint
ventures using the equity
method as per Ind AS 28.
3. Details of subsidiaries:
Zomato Hyperpure Private
Limited, 100% ownership.
 Impairments recognised on financial assets :
The company follows a forward-looking Expected Credit Loss (ECL) model for financial assets, in
line with Ind AS 109.
Applicable to:
• Assets carried at amortised cost
• FVOCI (Fair Value Through Other Comprehensive Income) debt instruments

Valuation method:

1. Inventories are valued at the lower of cost and net realisable value.
2. Cost of inventories is determined on a first-in, first-out (FIFO) basis.

Criteria of recognition of trade receivables and

provision for doubtful debts:
1. A receivable represents the Company’s right to an amount of
consideration that is unconditional (i.e., only the passage of time is
required before payment is due).
2. For trade receivables, the Company applies the simplified approach
required by Ind AS 109, which requires expected lifetime losses to
be recognised from initial recognition of the receivables.
Disclosure of Contract Assets: Leased & ROU Assets:
Contract assets are recognised when
there is a right to consideration in
exchange for goods or services
transferred to the customer, which is
conditional on something other than
the passage of time.

The right-of-use asset is initially

measured at cost, which comprises
the initial amount of the lease
liability adjusted for any lease
payments made at or before the
commencement date, plus any initial
direct costs incurred and an estimate
of costs to dismantle and remove the
underlying asset or to restore the
underlying asset or the site on which
it is located, less any lease incentives
received.
Impairment testing on cash-generating units (CGUs):

1. The company performs impairment testing for investments held in

subsidiaries, associates, and joint ventures, which are treated as Cash-
Generating Units (CGUs) in the standalone books.
2. These investments are carried at cost, and tested for impairment when there
are indicators of a potential decline in recoverable value.

CGU Identification in Standalone Context:

• Each investment in a subsidiary or associate is considered a separate CGU,
since cash inflows from those investments are largely independent of other
assets of the entity.
• Impairment is thus tested individually for each major investee.
Method of Testing
• The company compares the carrying amount of each investment to its
recoverable amount, which is the higher of:
o (i) Fair Value Less Costs to Sell (FVLCTS)
o (ii) Value in Use (VIU) – Present value of future cash flows expected from
the investment.
Policies
1. Intangible assets are measured on initial recognition cost
2. Cost of intangible assets acquired in a business combinations in their value at date of acquisition

Recognition
1. Intangible assets value = cost – accumulated amortisation – impairment loss
2. Zomato uses cost model for intangible asset measurement

Internally generated intangibles

1. Internally generated intangibles excluding capitalised development costs are not capitalised
2. Company capitalizes Development expenditure as per Ind AS 38

Intangibles under business combination

1. Intangibles under business combination include brand, technology platform, trademarks and non compete
2. Other intangible asset include Software and website

Amortization rules
1. Useful lives of the asset is determined and is mentioned in the table
2. No intangible assets received through government grants or concessions

Assumptions for goodwill

1. Zomato considered the assumptions relating to weighted average cost of capital (WACC) and terminal growth rate
CGU recoverable amount
1. Recoverable amount = Max (CGU fair value – cost of disposal , Value in use)
2. When carrying amount exceeds its recoverable amount, asset is considered impaired

Intangible assets classified under lives

1. Finite
2. Indefinite

Amortisation
1. Finite lives assets are amortized on a straight-line basis
2. Future economic benefits embodied are used to modify ammonization year or method

Impairment
1. All intangible assets (other than goodwill) are checked assessed for impairment at least at end of year
2. If there is any indication then the asset will be impaired

Impairment loss
1. There is provision for impairment loss of INR 39 cr.
2. The report does not show intangible assets “under development” or not ready for use

Unavailable information
1. The notes do not break down intangible assets by business segment or geography
2. No restrictions or pledges on the title of intangible assets are disclosed in the report
 This table gives all information about
1. Intangible asset balances
2. Additions, deletions and adjustments

Gross intangible asset value is INR 77 Cr.

Accumulated amortization is INR 73 Cr.
Net intangible assets = 77 – 73 = INR 4 Cr.

Gross value of intangible assets at 31 March 2023: 72

Gross value of intangible assets at 31 March 2024: 77
Change in intangible asset = 7%

Accumulated amortisation at 31 March 2023: 72

Accumulated amortisation at 31 March 2024: 73
Change in intangible asset = 1.3%

On 31 March 2022 there is huge deletion or

adjustment of INR 260 Cr.
 Authorised vs Issued / Paid-up Capital
Total equity shares outstanding (as of balance sheet date): 8,680,255,038 shares Value: ₹868 crore

Authorized share capital: ₹1,448,63,29,341 (₹1,448.63 crore)

Issued & paid-up share capital: ₹881,97,83,744 (₹881.98 crore) 38%

Authorised
Issued/ paid up
Only one class of shares: Equity shares (no preference shares) 62%

New shares issued in FY24: Bonus Shares, ESOPs

Main Components of Reserves & Surplus Component (FY24) Amount (₹ crore)
Equity instruments through OCI 60
• Capital reserves
• Securities premium Debt instruments through OCI -8
• Share-based payment reserve (₹683 crore as of March 2024) Foreign currency translation reserve 1
• Retained earnings Remeasurements of defined benefit
• Treasury shares plans
-3
• Business transfer adjustment reserve
• Remeasurements of defined benefit plans Total OCI (added to equity) 50
• Foreign currency translation reserve
• Equity instruments through OCI
• Debt instruments through OCI

Key Movements and Adjustments in FY24

• No transfer to general reserves in FY24
• No dividend paid or proposed in FY24
• No capital redemption or debenture redemption reserve
• No buyback or capital reduction during the year

Other Comprehensive Income (OCI)

• Remeasurements of defined • Equity instruments through OCI

benefit plans
• ₹3 crore • ₹60 crore

• Subtotal (after tax) • Standalone OCI increased equity

• ₹57 crore • by ₹50 crores due to net profits

Shareholding Pattern Details Share Holding Pattern

Promoter & Promoter Group 0%

Institutions 70.38% 0%
2%

Non-Institutions 28.04% 28% Promoters

Non-Promoter, Non-Public 1.58% Institutions
Non-institutions
70%
Non-promoter, non-public
Key Observations
• No pledged shares or encumbrances
• Multiple change in equity reports provided (transparency)
• No restatements or auditor/management concerns
• No restrictions on profit distribution or use of reserves

Business Implications
Large, flexible equity base High institutional holding
supports future fundraising and expansion signals strong market confidence and governance

Use of ESOPs Conservative dividend and reserve policy

aligns employee interests with company performance supports reinvestment and growth
(share-based payment reserve: ₹683 crore)
 Section J. Revenue Recognition
Key Observations

Zomato use Indian Accounting Standard 115 (Ind AS 115). They identify
performance obligations with:
• Restaurant Partners
• Users
• Delivery Partners
• Advertisement
• Sale of traded goods

• Revenue Recognition is both over time or point in time based on

the context, Contract period and obtaining control of object.
• Transaction price is measured as the consideration expected, net of
taxes and variable components (e.g., discounts and rebates). It
includes any non-cash consideration over which the company has
control.

• Zomato uses judgment to determine customer type and based on

that decide if incentives to users are netted from revenue or booked
as advertising expenses.
 Section J. Revenue Recognition They have Only One International Operation in UAE which account for
0.27% of their revenue.

The refunds are defined in Contribution which is defined as the

Adjusted revenue – other such charges.
Zomato earns revenue from multiple streams:
• Online food delivery
• Advertisements
• Subscriptions
• Sign-up fees
• Delivery facilitation services

Revenue for FY24 was ₹6,622 Cr, net of ₹187 Cr in discounts and user
incentives.
 Section J. Revenue Recognition
Key Observations

They have Contract liabilities and unbilled receivables as follows:

• Unbilled receivables (contract assets): ₹6 Cr
• Contract liabilities: ₹27 Cr

They consider Advanced payment and unearned revenue as contract

liabilities until the obligation is satisfied.

Unbilled receivables are disclosed under trade receivables and relate to

completed work not yet invoiced.
 Section J. Revenue Recognition Transactions with Related parties are performed under the compliance
of section 177 and 188.

Key Observations Related party disclosures are referenced in Note 34 (e.g., royalty from
Talabat), but terms are only partially disclosed.
Revenue is broken down in following segments:

• India food ordering and delivery

• Hyperpure supplies (B2B business)
• Quick Commerce business
• Going Out
• All other segments (Residual)
 Section J. Revenue Recognition

Auditors have highlighted 3 key audit matters on revenue

• Impairment of investment in a subsidiary (Refer note 5 & 41 of the standalone

statement)
• Fair valuation of investment in other entities (Refer note 5 & 33 of the standalone
financial statement)
• Revenue Recognition

Zomato also have a ₹10 Cr in pending litigations, including

consumer and legal cases, which is disclosed under not 39
as given above

Overall, there are 4 claims against company which are

listed under note 39 Contingent Liability not provided for.
These claims are not acknowledged as debt
Contingent liabilities not considered:
1. GST – INR 420 Cr
2. Customer legal suits – INR 10 Cr

Liabilities due to legal proceedings:

1. The report highlights Legal/regulatory proceedings.
2. Key legal proceedings include the INR 420 crore GST demand and ~INR 10 crore of consumer suits

Lease and contract to be executed:

1. The company follows Ind AS 116, so most leases are on-balance sheet.
2. There is Contract remaining to be executed – 79 Cr.

Liabilities due to guarantee:

Zomato has committed to support its subsidiaries if needed. The standalone notes explicitly state that the parent will
provide support to each subsidiary unable to meet its liabilities and that is a Guarantee given.

What is not mentioned:

1. There is no disclosure of any off-balance hedges or derivative contracts.
2. The notes do not mention any securitization or factoring. Trade receivables are fully recognized on the balance sheet.

No additional off-BS obligations are disclosed. In fact, the notes explicitly state the company “does not have any long term
commitment or material non-cancellable contractual commitments” beyond normal operations. There are no unusual long
term-obligations. The company does not report any vendor-finance or supply-chain financing programs.
Section K. Off-Balance Sheet Assets and Liabilities
Disclosure of Contract Assets:

1. During the financial year under review, the entities that were liquidated/closed have been
mentioned.
2. No specific mention of unconsolidated SPVs, trusts, or affiliates appears in the notes,
suggesting either none exist or they are not material for disclosure.
Section K. Off-Balance Sheet Assets and Liabilities
Obligations under employee benefit plans: Litigations under indirect tax laws:

1. The Company has a defined benefit gratuity plan in India, which

requires contributions to be made to a separately administered 1. Indirect tax litigations, including GST, are disclosed
fund. as contingent liabilities.
2. The cost of providing benefits under the defined benefit plan is
2. Specific amounts and details of ongoing tax
determined using the projected unit credit method.
3. No pension plan is mentioned; other benefits like leave
disputes are listed, noting potential outflows if
encashment are provided for but not externally funded. rulings are unfavourable.
Section K. Off-Balance Sheet Assets and Liabilities

1. No obligations relating to
environmental clearances, land use
rights, or rehabilitation liabilities are
disclosed.
2. Intangibles, and contingent liabilities
but lack reference to environmental,
land use, or rehabilitation obligations.
3. Zomato’s business (food delivery, quick
commerce) likely has minimal exposure
to such liabilities.

1. Related party transactions have been mentioned: (a) Transactions

with subsidiaries: [e.g., services, investments] (b) Transactions with
key management personnel [e.g., remuneration]
2. Transactions include services, loans, and investments, all
recognised per Ind AS; no off-balance sheet economic obligations
are explicitly suggested.
3. No unrecorded economic obligations are evident from disclosures.
Section K. Off-Balance Sheet Assets and Liabilities
Company’s export obligations under government
incentive schemes:

Disclosure of any indemnity clauses or warranties in relation to Absence of mention suggests no material export
past business sales or acquisitions that may lead to future
No material disclosures of this nature are evident. obligations under schemes like EPCG.
liabilities:
No material disclosures of this nature are evident from
the report. Off-balance sheet arrangements impacting the
company’s credit ratings or borrowing capacity

No clear link is established in the report.

Obligations relating to environmental clearances, land
use rights, or rehabilitation liabilities

No such obligations are disclosed in the report. Terms and conditions of any bank guarantees or letters
of credit issued

No such terms have been mentioned in the report.

Current tax and deferred tax expense
• The current tax for the year is INR 1 crore and there is no deferred tax.
• The company has paid taxes of INR 81 crores during the year as taxes. (as per the standalone cash flow
statement).
• The company has not recognized any deferred taxes due to the absence of reasonable certainty of
realization.

Reconciliation of accounting tax expense and tax expense

The difference is due to:
• Permanent differences as per accounting and tax rules
• Temporary differences on which deferred tax is not created
• Set off of brought forward losses and unabsorbed depreciation

Expected tax rate and statutory tax rate

The statutory tax rate is 25.168% and the expected tax rate is around 0.08% due to the differences as
mentioned above.

Litigations and undisclosed liabilities pertaining to taxes

There are no litigations relating to income tax liabilities.
The company has an undisclosed contingent liability relating to dispute with the GST Authorities with a
potential tax liability amounting to INR 420 crores.
 What is the basic EPS reported for the current financial year?

Basic EPS 2024 = Net Profit/ Weighted average number of equity shares in calculating basic EPS
= (3510000000/8493497136) = 0.41

What is the diluted EPS reported for the current financial year?

Diluted EPS 2024 = Net Profit/ Weighted average number of equity shares in calculating diluted EPS =
(3510000000/8755246830) = 0.40

What is the EPS for the previous financial year, and how has it changed?

Basic EPS for 2023 = (9710000000/8101158888) = (1.20) for 2023, increased by 1.61 for 2024
Diluted EPS = (9710000000/8101158888) = (1.20) for 2023, increased by 1.60 for 2024
Reason for increase is Improved Profitability

How do the basic and diluted EPS compare, and what causes the difference?

The basic EPS of 0.41 is slightly higher than the diluted EPS of 0.40. Zomato has an ESOP scheme, options given to
employees to buy shares at a predominant price. If employees exercise these options, new shares are issued which
increases the share count. When the no. of share increases, the same profit is divided among shares, reducing the
diluted EPS.

Are the EPS figures reported separately for continuing and discontinued operations?

The report does not separately disclose EPS for continuing and discontinued operations. EPS is based on consolidated
profit/loss attributable to equity shareholders.

Overall EPS has turned positive from negative in previous years indicating improved profitability for shareholders
 What is the weighted average number of equity shares used in calculating EPS?)?

Weighted average number of equity shares in calculating basic EPS = 8,49,34,97,136

Weighted average number of equity shares in calculating diluted EPS = 8,75,52,46,830

Are there any adjustments to the number of shares during the year (e.g., bonus issue, buybacks)?

The report does not separately disclose EPS for continuing and discontinued operations. EPS is based on consolidated
profit/loss attributable to equity shareholders.

Are any potential dilutive shares (e.g., convertible debentures, stock options) included in the diluted EPS calculation?

Yes, there are additional shares issued in the form of ESOPs included in the EPS. No of shares issues as ESOPs =
(8,75,52,46,830- 8,49,34,97,136) = 26,17,49,694

Does the company disclose the method and assumptions used for calculating diluted EPS?

Diluted Earnings Per Share (EPS) amount is calculated by dividing the profit / (loss) for the year attributable to owners of
the Parent by the weighted average number of equity shares for the effects of all dilutive potential equity shares,
primarily stock options. The primary dilutive stock options issued under Zomato’s Employee Stock Option Plan (ESOP)
The report does not explicitly disclose specific assumptions, such as the exercise prices of stock options or the market
price.

Is EPS calculated based on profit attributable to equity shareholders or net profit after tax?

Yes, EPS is calculated based on profit attributable to equity shareholders

Primary reason for dilution in equity shares is Employee Stock Options or ESOPs issued by the company
 Are the EPS figures compliant with Indian Accounting Standards (Ind AS) or Indian GAAP?

Yes. These standalone financial statements have been prepared in accordance with Indian Accounting Standard (Ind AS)
prescribed under Section 133 of Companies Act, 2013 (the “Act”), read with rule 3 of the Companies (Indian Accounting
Standards) Rules, 2015 and relevant amendments rules issued thereunder

Has the company issued any stock options or convertible instruments that could dilute EPS in future?

Yes, Zomato has issued employee stock options (ESOPs) and other share-based instruments that have the potential to
dilute EPS in the future.
ESOP 2014, ESOP 2018, ESOP 2021, and ESOP 2022 are currently active

Is the impact of bonus shares, rights issue, or share splits reflected in EPS calculations?

Zomato issued 3,25,03,548 bonus shares in FY24 and 1,28,41,983 bonus shares in FY23.
These bonus shares have been included in the weighted average number of equity shares for EPS computation

Does management comment on the drivers of changes in EPS in the MD&A or directors’ report?

Yes, Zomato’s management has provided a clear explanation of the drivers behind the change in EPS, although they do
not discuss EPS as a standalone metric in the MD&A or Board’s Report. Instead, they focus on the underlying drivers of
profitability, which directly influence EPS.
The company posted its first-ever consolidated net profit (PAT) of ₹351 crore in FY24, compared to a loss of ₹971 crore in
FY23. This improvement in profitability directly contributed to the shift from a negative EPS of ₹(1.20) in FY23 to a
positive EPS of ₹0.41 in FY24 (consolidated)

The Annual Report encapsulates the compliance of EPS with Accounting Standards, Dilution in Future, Impact of Bonus Shares, and Drivers of Change in EPS
Business Segments

Food Delivery Quick Commerce (Blinkit)

Going-out (Dining-out & Ticketing) B2B Supplies (Hyperpure)

Income Distribution
Total Income (₹ crore)

Food Delivery 7,792

6%
Food Delivery
Quick Commerce 2,301 22%
Quick Commerce

Going-out 258 2%
54%
Going-out
B2B Supplies (Hyperpure)
B2B Supplies (Hyperpure) 3,172 16% Other Income

Other Income 847

Key Changes:

• “Going-out” classified as a separate segment in FY24

Revenues and Profits of the Segments Reported by Zomato

Ind AS 108 Criteria

 Key Observations

• Zomato has given the segments Only in consolidated financial statements,

as per Ind AS 108.
• They haven't disclosed Segment Assets and Segment Liabilities as because
they are not regularly reviewed by the CODM as part of decision-making.

The allocation of Common assets and liabilities is done using internal metrics
like number of orders, employees, or gross order value, as reviewed by the
Chief Operating Decision Maker (CODM).

India Food Ordering and Delivery contributes the most among the segments

The reconciliation between total segment results is as follows :

• Other income
• Share-based expenses
• Finance costs
• Depreciation
Adjusted revenues does not include inter-segment revenues.
 Key Observations

The Performance changes in the segments for this year are as follows :

• Food delivery revenue from operations grew 40% YoY to INR 6,361 crore in FY24
from INR 4,533 crore in FY23.
• Hyperpure revenue more than doubled to INR 3,172 crore (111% YoY growth) in
FY24
• Quick commerce Revenue grew 116% YoY from INR 1,063 crore in FY23 to INR
2,301 crore in FY24
• Going-out business grew 51% YoY to INR 258 crore from INR 171 crore in FY23

Other than financial instruments, all non-current assets of the Zomato are located in
India
Equity Shares
Debentures or Bonds

Current
 Subsidiaries (e.g. Zomato Payments Pvt Ltd,
The Company has made investments in Zomato Hyper pure, Blink Commerce Pvt
government securities which carries sovereign Ltd)
rating and debenture or bonds which are rated
AAA. Associates (e.g. Cure fit Healthcare Pvt Ltd,
Bigfoot Retail)

Zomato values its quoted mutual funds using NAV at

the reporting date. Unquoted equity investments are
assessed using valuation methods such as DCF,
Non-current investments includes associates, bonds comparable company and transaction multiples, or
NAV. Government securities and debentures are
Current investments includes certain government valued based on market inputs and benchmarks.
securities, Mutual Funds When fair value isn’t reliably measurable, the cost
method is applied. Loans and receivables are valued
using discounted cash flows at prevailing market
rates.

Subsidiaries: Blink Commerce Pvt Ltd, Zomato

Hyperpure, Zomato Payments, Zomato
Entertainment
Associates/VCs: Curefit, BigFoot Retail, Samast
Technologies, Hands on Trades, Shiprocket,
UrbanPiper, Loyal Hospitality, Adonmo, Unifeeder,
BBDaily (Milkbasket), etc.
 Composition of Net Profit One-time or exceptional gains/losses Consistency between YoY growth in EBITDA & net profit

FY FY 2022-23 FY 2023-24

Net Profit (in crores) 117 1372 ↑11x

491
EBITDA (in crores) 274 1502 ↑5.5x
920

Net profit growth outpaced EBITDA growth in the last 2 years

➔ Operating profits improved strongly, but the outsized jump in net profit
was amplified by interest/investment income, not just core business.

Operating Profit Non-operating profit

A significant chunk of reported profit ➢ The standalone P&L shows a one-off “Exceptional item” Consistency between Operating Cash flow & Net profit
comes from non-operating sources, of ₹39 Cr (FY2023: 0)
highlighting that core operations still ➢ Note 28 explains this as an impairment loss on FY FY 2022-23 FY 2023-24
carry most of the business risk. investments in a subsidiary (Zomato Payments Pvt Ltd)
following its exit from the payment aggregator business.
OCF (in crores) 224 1379
➢ This non-recurring ₹39 Cr charge modestly reduced FY24
profit (1372 Cr pre-tax vs 1411 Cr pre-tax before the
Net Profit (in crores) 117 1371
impairment)
Operating cash flow has consistently exceeded net profit.
Impact of Foreign exchange gains/losses on profit The differences arise from non-cash and working-capital adjustments:
➢ In FY24, depreciation, share-based payment, and provisions add back to
The Cash Flow Statement shows ₹0 Cr foreign exchange gain in FY24 (vs ₹1 Cr in FY23) under cash, while large interest and mutual fund income reduce profit, but
“other income”. Exchange differences on translation (shown in OCI) were also small (₹1 Cr loss vs not cash
₹8 Cr gain). In short, FX did not meaningfully affect standalone profit. ➢ Changes in Working capital (payables up by ₹115 Cr, other payables
+₹257 Cr) also boosted cash

Zomato’s core operations still rely on non-operating income to bulk up profits, and EBITDA gains haven’t fully trickled down to net profit.
Impact of Working Capital changes on Net Profit Impact of Non-cash income items on profit Changes in Accounting Policies
and cash flow
Significant working-capital swings affected cash vs profit.
➢In FY2024, increases in payables drove cash up: “Other
financial liabilities” rose by ₹257 Cr and trade payables
by ₹115 Cr, while receivables were nearly flat (-₹13 Cr).
These helped cash flow.
➢In FY2023, a jump in receivables (+₹104 Cr) and other
liabilities (+₹253 Cr) were the main swings.
➢Such shifts (especially the rise in payables/liabilities)
explain why cash from operations comfortably
exceeded the modest accounting profit, without
indicating underlying profit.
Management notes show no material policy changes
➔ Stable accounting policies mean year-over-year
comparisons of earnings are reliable, i.e., there’s no
Profits: Retained vs. Distributed Zomato’s standalone “Other Income” in FY2024 includes hidden policy shift obscuring profits.
several non-cash components:
- ₹14 Cr loss from fair value changes in mutual fund Impact of Deferred Tax on Net Profit
investments measured at FVTPL
- ₹320 Cr interest income from bonds measured at FVTOCI
(accrued income)
- ₹110 Cr gain from fair value from Govt Securities
- ₹174 Cr income from cross-charges to subsidiaries (internal
recoveries vs. external revenue)
Zomato declared no dividends or buybacks in FY2024. These non-core and often non-cash items contribute
Virtually all of the ₹1,371 Cr profit was retained in equity. significantly to reported profit and should be viewed with
caution when assessing the sustainability of earnings.
Deferred taxes are nil in standalone FY2024 P&L. No
large deferred tax liability is reported either.
No material deferred tax charge distorted net profit

Non-cash and working-capital items play a significant role in affecting reported earnings, so focus on recurring operating profit for a clearer picture.
 Provisions Adequacy Party Transactions
Capitalized Expenses
- Cross-Charge Income - ₹174 Cr
Category Amount in FY24 (up from ₹56 Cr in FY23)
No significant capitalizations inflate profit. booked as “Income from cross-
- Zomato’s policy explicitly states that internally- Doubtful debts 50 Cr charge”
generated development costs are not capitalized; such
R&D is expensed as incurred. - Share-Based Payments - Parent
- no indication of capitalized interest or prepaid
Trade receivables 69 Cr incurred ₹169 Cr of ESOP
expenses unusual enough to hide costs. expense in FY24 (vs. ₹375 Cr)
- The ₹50 Cr charge reflects a significant increase in provisioning compared to
Leasing costs follow standard Ind AS 116 accounting. prior years, indicating tighter credit controls or increased exposure to - Capital Infusions - Significant
Overall, expense capitalization does not appear to be doubtful accounts. equity injections into Hyperpure
a material factor in boosting earnings. - No separate provisions are disclosed for product warranties or litigation. and Blink during FY24
- Legal risks, such as the ₹420 Cr GST dispute, are classified as This reflects funding of subsidiary
contingent liabilities and are not included in provisions. operations rather than standalone
- In short, receivables provisioning in FY2024 was materially higher than in the revenue
past, but other provision categories remain minimal. - One-off Write-Offs - ₹161 Cr loss
recognized on Ireland
investment disposal
Gains on Sale of Assets, Investments, or Subsidiaries - Overall Impact - Related-party
flows (cross-charges, ESOP
Cash flow statement shows
allocations, capital movements,
- ₹23145 Cr net gain on sale of
mutual fund units and ₹1 Cr
write-offs) materially shape
profit on sale of PPE standalone revenue and expense
- ₹6 Cr gain on disposal of lines, and thus the bottom line.
subsidiary investments .
(Conversely, there were losses
on write-offs of certain Revaluation
investee companies.)
- These trading and disposal
gains are included in net profit. - No revaluation of fixed assets or intangibles for valuation
However, they are modest and gains.
mainly non-recurring. - There is no mention of revaluation reserves or upward asset
restatements that could inflate profit. In practice, Zomato
does not use a revaluation model for its own assets.

Zomato’s books do not rely on aggressive capitalization or revaluation—provisions and one-off gains are recognized transparently, supporting conservative earnings.
 Contingent Liabilities Profit Segmentation Audit Opinion & Internal Controls
GST Show-Cause Notices (₹420 Cr) Revenue Split: Zomato’s standalone auditor’s report for FY2024 is
- Issued December 2023 related to delivery-charge GST • ₹6,601 Cr service revenue (delivery commissions) unqualified
(inclusive of interest/penalty) • ₹4 Cr goods sales (Hyperpure) - no reservations, adverse remarks, or disclaimers
- Management contests validity; if upheld, could materially
issued.
impact earnings Virtually all standalone profit comes from the delivery
Other Contingent Claims (₹10 Cr) Maintained adequate IFC over financial reporting and
segment, no material contribution from overseas or small
- Small consumer/litigation claims disclosed in standalone ventures
controls were operating effectively as of March 31,
books • Earnings are highly concentrated in one core business 2024.
- Insignificant relative to GST exposure model. All operating profit arises from dividends, fees, - No material weaknesses identified while testing
Additional Legal Inquiries (Consolidated Context) and treasury income—no “core business” line in design and operative effectiveness
- Gig-economy labor lawsuit (no quantified exposure) standalone.
- CCI investigation (no quantifiable liability yet)
Hence GST dispute (₹420 Cr) is the sole major contingent
liability; all other exposures are immaterial at present.

Profits from overseas subsidiaries/ JVs

Emphasis of Matter / Key Audit Matters (KAM)
- Unqualified opinion issued. • All investments are in domestic subsidiaries (e.g., Blink Commerce,
- Key Audit Matters (KAMs): Hyperpure). No JV or foreign subsidiary holdings are disclosed in
• Valuation of subsidiaries (e.g., Blinkit, Hyperpure) standalone.
• Valuation of unquoted investments such as startups • As a result, there is no overseas profit flow into the standalone
• Revenue recognition systems to confirm revenue in line with accounting P&L.
standards • The standalone entity is not influenced by overseas operations; all
- Emphasis of Matter: ₹401 Cr GST dispute flagged as a material uncertainty. dividend and fee income is from Indian-incorporated subsidiaries.
Sustainability of standalone earnings thus depends solely on
- highlights a material uncertainty that could impact future financial
domestic subsidiary performance.
outcomes and is important for users of the financial statements to be
aware of
- In conclusion, no misstatements found, but earnings involve high judgment areas
common to tech firms.

Foreign expansion is still in “build” mode and primarily banks on consolidated profit—sustainability depends on turning these units profitable over time.