Zomato shares rally 19% on robust Q1 results, steers against market mood; check details

The stock rose sharply against the overall Street mood as benchmark indices NIFTY50 and SENSEX slashed 1% each in the morning trade.

The food delivery aggregator posted a multifold surge in net profit during the first quarter of the current financial year to ₹253 crore, skyrocketing by a breathtaking 12,550% from ₹2 crore in the same period last year, led by an increased occupancy during the flu season. On a sequential basis, the net profit surged 44% compared to ₹175 crore in the March 2024 ended quarter.

The sharp uptick in bottomline figure was majorly led by a higher other income component that was reported at ₹236 crore in the quarter under review as opposed to ₹181 crore witnessed in the year-ago period.

The company’s consolidated revenue from operations skyrocketed 74.1% year-on-year (YoY) to ₹4,206 crore in the June 2024 quarter, as against ₹2,416 crore in the corresponding quarter of the previous fiscal year. The figure rose 18% on a quarter-on-quarter (QoQ) basis from ₹3,562 crore last year.

The robust growth in Zomato’s net profit and revenue numbers was driven by a healthy increase in all business segments, especially the quick commerce arm Blinkit.

Zomato’s Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) in Q1 FY25 stood at ₹177 crore as opposed to an EBITDA loss of ₹48 crore reported in the same period last fiscal. Its adjusted EBITDA, on the other hand, rallied 2,391% YoY to ₹299 crore from ₹12 crore in the year-ago period.

The food delivery company’s Gross Order Value (GOV) across businesses rose sharply by 53% on-year and 14% sequentially to ₹15,455 crore, while the food delivery GOV increased 27% YoY in the June 2024 quarter.

Blinkit’s revenue jumped 145% on-year to ₹942 crore in Q1 FY25 from ₹384 crore last year, while adjusted revenue surged 22% YoY in the quarter.

Shares of Zomato were trading 16% higher at ₹271.5 per piece in the morning session on August 2, 2024, at 10:13 am on the NSE.