Zomato shares zoom as Q1 profit jumps 126 times; revenue jumps 75%

Zomato on Thursday reported a multifold rise in its net profit in the June 2024 quarter, which came in at Rs 253 crore, zooming more than 12,550 per cent on a year-on-year (YoY) basis. The company's net profit in the year-ago period stood at Rs 2 crore in the same quarter previous year.

The food delivery aggregator's revenue from operations increased 75 per cent YoY to Rs 4,206 crore in the first quarter of the ongoing financial year. Its topline came in at Rs 2,416 crore in the year ago period. On a sequential (QoQ) basis, revenue from operation increased 18 per cent from Rs 3,562 crore.

On an operation basis, the Ebitda for the April-June 2024 period came in at Rs 177 crore, which was an Ebitda loss of Rs 48 crore. Margins for the Q1FY25 stood at 4.21 per cent. Gross order value (GOV) of B2C business grew 53 per cent YoY to Rs 15,455 crore for the quarter.

The food delivery company's stock price has been surging on the back of rising profitability in its core business and the fast growth of its quick commerce arm, Blinkit, which reported an adjusted Ebitda loss of Rs 3 crore. The company added 113 stores, which is higher than their guidance of 100 stores.

Following the announcement of results, shares of Zomato Ltd rose nearly 4 per cent to hit new 52-week highs at Rs 238 on Thursday, with its market capitalisation (m-cap) crossing Rs 2.1 lakh crore market. The stock has more than tripled its value from its IPO price.