Zomato shares recover after sliding 5% in opening deals; still down nearly 2%

In a regulatory filing, the company said that a meeting of the board of directors is scheduled to be held on Tuesday, October 22, 2024.

The board, Zomato stated, will consider and approve the "raising of funds by issuance of equity shares by way of qualified institutional placement, as may be permitted under applicable laws, subject to such regulatory/statutory approvals, including the notice for the postal ballot for obtaining the shareholders' approval in this regard, as may be required."

Zomato also said its board will approve the second quarter results on October 22.

The food delivery aggregator reported a multifold jump in consolidated net profit to ₹253 crore for the April-June quarter of 2024-25 compared to ₹2 crore in the year-ago period.

The company's revenue from operations jumped more than 74% to ₹4,206 crore in the first quarter of this fiscal from ₹2,416 crore in the April-June period of last year, according to a regulatory filing by Zomato.

Its total expenses also rose to ₹4,203 crore during the quarter under review from ₹2,612 crore a year ago.

In a letter to shareholders, Zomato Chief Financial Officer Akshant Goyal shared that the gross order value (GOV) growth across its B2C businesses (food delivery, quick commerce, and going-out) accelerated to 53% YoY (14% QoQ) to ₹15,455 crore.

Zomato shares are being tracked more closely of late given its rival Swiggy is all set to launch its IPO soon. However, in an exclusive conversation with Moneycontrol, Zomato CEO Deepinder Goyal said it is "good for the sectors to have multiple companies."

"But I do not know anything else; we really focus on our own job", Goyal said. The CEO added, 'We don't care about anything else. What's going on out there, nothing."