Zomato has reported a profit of Rs360m ($4.32m) in the second quarter (Q2) of fiscal 2024 (FY2024), against a net loss of Rs2.51bn ($30.14m) in Q2 FY2023.

For the reported quarter ended on 30 September 2023, the company’s basic and diluted earnings per equity share was Rs0.04.

Revenues from operations stood at Rs28.48bn, an increase of 71.4% from Rs16.61bn in the previous fiscal year’s Q2.

The food delivery company also recorded a year-on-year (YoY) increase of 53% to Rs32.27bn in consolidated adjusted revenue for Q2 FY24.

Adjusted earnings before interest, taxes, depreciation, and amortisation (EBITDA) for the reported quarter of FY2024 totalled Rs410m, representing a YoY increase from the negative Rs192m in Q2 FY23.

According to an India Today report, this increase in the Q2 FY24 results was mainly driven by the increase in online food ordering demand, “especially in smaller towns”.

Another reason for this growth in Q2 FY24 is Zomato’s strategic expansion efforts for its dining-out business to provide online table reservations.

Zomato’s gross order value (GOV) from its consumer-facing businesses, including food delivery, going out and quick commerce, stood at Rs114.22bn, showcasing a YoY growth of 47%.

Adjusted revenue in Zomato’s food delivery segment in Q2 FY2024 was Rs19.25bn, while adjusted EBITDA in the same segment was Rs2.04bn.

In a letter addressing key questions from investors, Zomato stated: “GOV growth was almost entirely led by growth in order volumes, while the average order value remained largely flat. A visible uptick in demand coupled with some great execution by the team led to the robust growth in order volumes.

“Order volume growth is typically negatively impacted in this quarter due to lower delivery partner availability during rains. However, this year we were able to improve on that through better all-round execution.”