Zomato share price down by 5.5% as food delivery platform misses Q2 street estimates

In the early trade, the stock declined as much as 5.5% to ₹242.10 apiece on the NSE. At 9:30 am, the scrip was trading at ₹245.6, down 4.1%.

The company's market capitalisation stands at ₹2,16,221.33 crore.

On the BSE, the shares fell 3.9% to ₹246.

Zomato Q2 net profit rises 389% to ₹176 crore

However, the post-tax profit missed estimates. Experts had expected a net profit of around ₹260 crore.

Revenue from operations stood at ₹4,799 crore, an increase of 68.5% year-on-year (YoY) from ₹2,848 crore in the same quarter last fiscal, Zomato Ltd said in a regulatory filing.

The food aggregator posted ₹4,783 crore as total expenses in the quarter under review, compared to ₹3,039 crore a year back.

In a letter to shareholders, Zomato founder and CEO Deepinder Goyal said the "District" app, which will include going-out services such as dining, movies, live performances, sports ticketing, staycations, and shopping, "should be live in the next four weeks."

He added, "At this point, we are focused on making sure we do a good job at migrating the business from Zomato and Paytm platforms to the new District app."

On raising funds through QIP, he clarified that the margins of food delivery business continue to remain steady. The fundraise is to strengthen the company's balance sheet at this point, Goyal said.