Zomato reports a decline amidst slowdown in demand..!?

Zomato, India's leading food delivery platform, on monday released its third-quarter financial results for the current financial year. The company's operating revenue increased by 64% compared to the same quarter last year to Rs 5,405 crore. However, the net profit, which was Rs 138 crore in the same quarter last year, fell by 57% to Rs 59 crore. Similarly, the profit after tax (PAT) has declined by 66% compared to the previous quarter, that is, the september quarter, which is an important thing for stock market investors to pay attention to. It is noteworthy that the company had earned a profit of Rs 176 crore in the previous quarter. Revenue increased by 13% compared to the previous quarter to Rs. 5,405 crore from Rs. 4,799 crore.
The december quarter is considered a very important period for zomato, as it is the festive season and there is usually a lot of business, but a major problem has erupted in the december quarter. This has left investors in a big shock. zomato, in a statement issued to investors today, said that in the second half of November, Zomato's business and demand for its services among the people (broad-based slowdown) have declined, which led to a decline in profits. However, the company said that it is optimistic about the long-term growth targets of the food delivery industry.
The company also said that it expects a 20% growth in gross order value (GOV) on an annual basis. This will be known by the end of the current financial year. Zomato's gross order value (GOV) in the december quarter increased by 57% compared to the same quarter last year and 14% compared to the previous quarter. It sold products worth Rs. 20,206 crore in the december quarter. zomato shares have fallen sharply after its financial results for the december quarter also showed a decline in business since November. Zomato's share price fell more than 7% to Rs. 230.70 on the National Stock Exchange today. It is noteworthy that the share price fell to the day's low of Rs. 241.75 after the financial results were released.
For more interesting updates wa click and follow Indiaherald WhatsApp channel

Find out more:

Sowmiya Sriram

20/01/2025 08:56 PM