Online food delivery platform Zomato Ltd saw a remarkable surge in its stock value, climbing over 5 per cent following the company's announcement of its third-quarter (Q3) results ended December 31, 2023. Zomato reported a consolidated net profit of Rs 138 crore, marking a significant turnaround from the Rs 347 crore loss logged in the same quarter of the previous fiscal year.
The stock surged by 5.17 per cent on the BSE, reaching a 52-week high of Rs 151.45, while on the NSE, it experienced a 5 per cent jump to Rs 151.40, also hitting its 52-week high level.
Zomato attributed its robust performance to the accelerated growth of quick commerce and the steady performance of its core business. Consolidated revenue from operations stood at Rs 3,288 crore, up from Rs 1,948 crore in the year-ago period. However, total expenses also increased to Rs 3,383 crore compared to Rs 2,485 crore in the corresponding period a year ago.
Deepinder Goyal, managing director and CEO of Zomato, expressed optimism about the company's future prospects. He highlighted the food delivery Gross Order Value (GOV) growth, which rebounded to 25 per cent year-on-year (YoY) in the third quarter. Goyal expects GOV to continue growing at a rate of 20 per cent or more YoY, potentially accelerating further with increased market share and a revival in macro consumer demand.
Regarding Zomato's quick commerce vertical Blinkit, Goyal noted an impressive GOV growth of 103 per cent YoY, coupled with declining losses.
In terms of adjusted revenue, Zomato's food delivery business generated Rs 2,025 crore in the third quarter of FY24, compared to Rs 1,565 crore in the year-ago period. The company remains optimistic about its growth trajectory amid evolving market dynamics and consumer behaviour.