Food aggregator and delivery giant Zomato maintained its profitability for the second consecutive quarter, reporting a net profit of Rs 36 crore during the July-September period. This marks a significant turnaround from the Rs 251 crore loss recorded in the same quarter last year.
Financial Performance
Zomato’s revenue from operations also saw a robust growth of 72%, reaching Rs 2,848 crore compared to Rs 1,661 crore in the corresponding quarter of 2022. This positive financial performance has contributed to a surge in the company’s shares, which rose by 6.60% from the previous day’s closing price to Rs 114.65. In 2023 alone, Zomato’s shares have witnessed a remarkable increase of over 50%.
Previous Quarters’ Performance
The trend of profitability started in the April-June 2023 quarter when Zomato reported its first-ever quarterly profits. In the June quarter, the company recorded a consolidated net profit of Rs 2 crore, a stark contrast to the Rs 186 crore loss in the same period last year. The positive trajectory continued into the January-March 2023 quarter, with a reduced loss of Rs 189 crore.
CEO’s Perspective
Deepinder Goyal, the CEO of Zomato, highlighted the sustained growth momentum across all of the company’s businesses. He expressed satisfaction with the progress witnessed in Q1FY24, which extended into Q2FY24.
Milestones and Market Presence
Zomato celebrated completing its second year as a listed company on the Indian stock exchanges in July. The company’s initial public offering (IPO) in July 2021 was a remarkable success, being oversubscribed 38.25 times. Although Zomato saw a premium debut of 53% during its IPO, it faced challenges in capitalizing on these gains later.
Despite the initial fluctuations, Zomato’s recent financial performance indicates a positive outlook, demonstrating its resilience and adaptability in the competitive food delivery market.
