1. Food delivery platform Zomato beats Q3 profit estimates on higher demand

Food delivery platform Zomato beats Q3 profit estimates on higher demand

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1 min read • Updated: February 8, 2024, 3:56 PM

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Summary

Zomato reported consolidated net profit of ₹138 for the third quarter. Revenue from its mainstay food delivery business grew 48% for the quarter, while revenue from its quick commerce division more than doubled.

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Zomato reports robust Q3 result

BENGALURU/CHENNAI, Feb 8 (Reuters) - Indian food delivery platform Zomato reported a quarterly profit that beat market expectations on Thursday, aided by increased demand during the men's Cricket World Cup and the festive period.

The company's shares rose more than 3% after the results.

It reported a consolidated net profit of ₹138 crore ($16.6 million) for the third quarter ended 31 December, beating analysts' estimate of ₹90 crore, as per LSEG data. It had reported a net loss of 347 crore in the same quarter last year.

Indian consumers ordered more food from restaurants during the men's Cricket World Cup, which took place between Oct.5 and Nov. 19. This, coupled with the festive season, when Zomato and its Softbank-backed rival Swiggy bring in a lion's share of their yearly sales, helped boost its topline.

Revenue from its mainstay food delivery business grew 48% for the quarter, while revenue from its quick commerce division more than doubled. This resulted in the total revenue jumping 69% to ₹3,288 crore.

Company's share closed 1.1% higher today, with day high of ₹147.5 per share