MUMBAI: Eternal Limited (yes, the artist formerly known as Zomato) has dished out its full-year results for FY25 and it’s a mixed bag of spicy growth, some bitter tax overhang, and a sprinkle of strategic acquisitions.
Clocking in a consolidated profit of Rs 527 crore, the company posted a sharp jump from Rs 351 crore last year. Total income rose to Rs 21,320 crore, up 64 per cent year-on-year, led by robust performance across its three main revenue streams food delivery (Rs 8,080 crore), Hyperpure B2B supplies (Rs 6,196 crore), and quick commerce (Rs 5,206 crore). Even its lesser-known “Going Out” vertical (think restaurant reservations and events) contributed a modest Rs 737 crore.
But it wasn’t all gravy. Eternal continues to battle the ghosts of legacy operations, its subsidiaries Zomato Hyperpure, Blinkit, and Zomato Entertainment racked up accumulated losses of Rs 877 crore, Rs 2,328 crore, and Rs 130 crore respectively. Blinkit alone dragged down segment results, contributing to a Rs 21 crore loss in the quick commerce vertical, though that’s a significant improvement over last year’s Rs 253 crore deficit.
The company also weathered a Rs 420 crore GST storm, with demand orders from Maharashtra and West Bengal authorities for taxes and penalties on delivery charges from 2019 to 2022. While Eternal believes it has a “strong case on merits” and has appealed the orders, the final outcome remains up in the air.
Adding to its expansion menu, Eternal acquired the movie and event ticketing arms of Paytm Orbgen and Wasteland Entertainment in a Rs 2,014 crore deal, booking a combined Rs 1,020 crore in goodwill in the process.
The company isn’t shying away from splurging either. It raised a cool Rs 8,500 crore through a QIP, and ploughed much of it back into investments, with mutual fund units, bonds and subsidiaries eating up a significant portion. Yet, Eternal ended the year with a hefty Rs 666 crore in cash, even after burning Rs 7,993 crore on investments and spending Rs 8,042 crore on financing activities.
Employee stock options continue to be a favoured dish over 477 million shares were allotted to the ESOP trust this year.
So, while the food’s hot and the numbers are sizzling, it’s clear that Eternal is still in the kitchen cooking up clarity on the tax front and trying not to get burned.