Jobaaj Stories
A year ago Zomato posted a a net loss of Rs. 302 crores and a revenue of about 1,661 crores.
Recently, Zomato posted a net profit of Rs 36 crore where the revenue grew about 61% on year to Rs 2, 848 crores. This output is reported at a time when e-commerce is facing high inflation.
The Food Delivery Platform, Zomato ‘s shares rose around 5 percent and even hit a 52-week high of Rs 121.90 in the opening trade on November 6. This is the company’s second straight quarter of profit in July- September impressed brokerages across the board which prompted some to raise the price tags for the stock.
Must Read, the story of Deepinder Goyal, Pioneering Change in the Food Delivery Industry through Zomato
At 09:28 AM, Zomato's shares were trading nearly 2 percent higher at Rs 118.60 on the NSE. The stock had previously settled 8.3 percent higher on November 3 following the company's Q2 earnings announcement.
Zomato reported a net profit of Rs 36 crore, accompanied by a 71 percent year-on-year revenue growth to reach Rs 2,848 crore. This is a significant improvement from the company's year-ago figures of a net loss of Rs 302 crore and revenue of Rs 1,661 crore. Zomato's robust performance is particularly noteworthy in a challenging economic environment marked by inflation and subdued demand in the e-commerce sector.
Also, Read, Government Orders Blocking of 22 Illegal Betting Apps, Including Mahadev Book
Nuvama Institutional Equities, which raised its price target for Zomato by more than 27 percent to Rs 140, expressed that Zomato's revenue growth exceeded its expectations. They noted that all of Zomato's business segments continued to thrive.
In a note, Nuvama Institutional Equities stated, "Strong growth across all business segments gives us confidence in Zomato’s ability to maintain its leadership in food delivery and expand its market share in quick commerce." They also reaffirmed their "buy" recommendation for Zomato's stock.
Also, Read, U.S. Dollar Hits 6-Week Low as Job Data Disappoints: Key Insights
