03-Nov-2023
2 mins read
In an impressive stock market showing, Zomato’s shares witnessed a surge surpassing 10%, reaching new 52-week highs of Rs 120 today. The financial disclosure for the quarter ending September in the fiscal year 2023-24 (Q2FY24) revealed that Zomato achieved a net profit of Rs 36 crore, overturning a Rs 251 crore loss from the same quarter last year. This quarter’s net gains improved notably from the Rs 2 crore profit in Q1. Zomato’s stock price has witnessed a significant rally, climbing more than 2.5 times from its 52-week low of Rs 44.35 in January 2023 on the BSE. Revenue from operations for Zomato hit Rs 2,848 crore in Q2, representing a 72% surge from Rs 1,661 crore year-over-year, propelled by the burgeoning online food delivery sector in India.
With the festive period in full swing and events like the World Cup occurring concurrently, expectations for sustained performance improvement remain high. These occasions traditionally lead to a surge in food orders; however, Zomato has expressed a measured optimism. While acknowledging that festivities and special events tend to increase food delivery orders, the company also recognizes that these same occasions often lead people to travel and dine out more, potentially offsetting some of the gains.
“While people order a lot during festivals, they also travel and eat out a lot more. The World Cup should result in additional orders, but we think that would also be limited to a handful of matches,” said Zomato in a regulatory filing to the stock exchanges.