Zomato, the popular food aggregator and delivery company, has reported its first-ever quarterly profit, causing a surge in its shares. The company’s stocks rose by 10% on Friday and an additional 5% today, reflecting investors’ strong interest. As of now, Zomato shares are trading 5% higher at Rs 99.90.
In the April-June quarter of 2023, Zomato achieved a consolidated net profit of Rs 2 crore, a significant turnaround from the Rs 186 crore loss it experienced during the same period last year. A loss of Rs 189 crore was reported in the previous quarter (January-March 2023). Additionally, Zomato’s revenue from operations for the June quarter stood at Rs 2,416 crore, reflecting a remarkable 71% increase from the year-ago period’s Rs 1,414 crore.
Investors are optimistic about Zomato’s future growth prospects, given its leading position in the duopoly food delivery business. Commenting on Zomato’s recent success, VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services, stated, For those investors who bought at low rates, partial profit booking is fine. It makes sense to remain invested in this growth stock.
This July marked Zomato’s second-year anniversary of being listed on the Indian stock exchanges. Since its successful initial public offering on July 23, 2021, when it was subscribed 38.25 times, the food aggregator has faced ups and downs in capitalizing on its early gains.
This news article provides an overview of Zomato’s recent achievement and financial performance, highlighting its transition from previous losses to its first quarterly profit. It presents the opinions of industry experts and emphasizes Zomato’s potential for further growth. The article abides by journalistic integrity, offering a balanced perspective on the topic without promotional language or unnecessary punctuation.
In summary, Zomato’s shares have climbed steeply as the company achieves its first-ever quarterly profit, generating excitement among investors and industry experts. The company’s strong financial performance in recent months has positioned it for further growth in the future.
