Car rental Platform Zoomcar has recently announced its financial results for the quarter ending December 2023 or Q3 FY24. The report shows that, the profit scale of the company has shrunk nearly 19% on a yearly basis but it also turned profitable during the period. The improvement in the bottomline is the result of a one-time gain.

As per the company’s filings sourced from the US’ Securities and Exchange Commission, the NASDAQ-listed company’s net revenue declined 18.8% to $2.42 million ( 20 crore) during the third quarter of the ongoing financial year in contrast to $2.98 million ( 24.7 crore) recorded in Q3 FY23.

CEO and co-founder of Zoomcar, Greg Moran quoted, “Our third fiscal quarter results capped a strong performance in our ongoing efficiency efforts as we achieved record gross profit and non-GAAP contribution profit while also paving the way for meaningful revenue growth over the next several quarters.”

During the lastDecember, Zoomcar locked a deal merger agreement with Innovative International Acquisition Corp and subsequently became a publicly listed entity. The decade-old renowned company operates across more than 50 cities globally (majorly in India) and has over 3 million active users and over 25,000 vehicles registered on its marketplace.

Commenting on the expenses, the company said, the operating cost of the company slipped down 24% to $2.2 million (Rs 18.26 crore) in Q3 of FY24 from $2.9 million ( 24 crore) in the same quarter of the last fiscal year. The decrease in operating expenses was a result of a decrease in sales and marketing costs and technology and development costs.

Zoomcar posted $14.4 million profit as compared to $8.7 million ( 72.21 crore) net loss in the same period last year. This improvement was primarily due to a one-time gain of $28.9 million from a deSPAC transaction, which involved financial instrument conversions at fair market value. Moreover, the company improved its gross margin profile and saw a decrease in host accident-related reimbursements during the period.

According to the filing reports, adjusted EBITDA loss of the company improved to $4 million from $5.2 million in the same period last year, this could be attributed to the cost reduction measures the company had undergone during the period. As of December 31, 2023, the company had total negative working capital of $26.2 million, including $6.1 million in cash.

Zoomcar’s Indian entity also showcased a sharp decline in its revenue. As per its regulatory filing in India, the company’s revenue from operations declined to 69 crore ($8.3 million) in FY23 from 95 crore ($11.4 million) in FY22.

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