Zomato, the popular food aggregator and delivery company, has once again proven its profitability reporting net profits of Rs 36 crore during the July-September quarter. This is a significant turnaround from the Rs 251 crore loss incurred in the same period last year. This marks the second consecutive profitable quarter for Zomato. Earlier this year, in the April-June 2023 period, the company reported its first-ever quarterly profits.
The revenue from operations for Zomato has also witnessed a substantial increase, rising 72% to reach Rs 2,848 crore compared to Rs 1,661 crore in the same quarter of 2022.
The positive financial results have had a positive impact on Zomato’s shares, which soared 6.60% from the previous day’s closing value of Rs 114.65. This year alone, the company’s shares have seen a remarkable surge of over 50%.
Zomato’s upward trajectory in terms of profitability began in the June quarter, where it recorded a consolidated net profit of Rs 2 crore, a significant improvement from the Rs 186 crore loss in the corresponding quarter last year. However, in the January-March 2023 quarter, the company had reported a loss of Rs 189 crore.
Deepinder Goyal, the CEO of Zomato, expressed satisfaction with the ongoing growth momentum, attributing it to healthy progress across all business segments.
July also marked an important milestone for Zomato as it completed its second year as one of the newly listed companies on Indian stock exchanges. Following its successful initial public offering on July 23, 2021, where it was subscribed 38.25 times, Zomato enjoyed a premium debut of 53%. Despite initial gains, the company faced challenges in capitalizing on its stock market listing.
Overall, Zomato’s consistent profitability and robust revenue growth demonstrate its dominant position in the food delivery industry and its ability to withstand market fluctuations. With its continued success, the company is poised to further expand its presence and consolidate its position as a leading player in the market.